While a home loan is an essential and a smart way to invest in your own home, the regular payouts of EMIs can be pretty heavy on your pocket. Also, given the competitive markets, various financial and non-financial institutions are now offering different interest rates on home loans. It is also possible to transfer your existing home loan from one provider to another. For this and to broaden their customer base, these institutions offer lucrative interest rates and benefits to customers. However, while transferring your home loan from one institution to another, there are various other things that should be considered apart from low interest rates.
Here’s a list of some of the many factors that you should pay attention to:
- First and foremost, you should consider the after sale service of the prospective provider, referring to how you will be treated and how your queries will be tended to once the transfer has been made.
- Also, given the stiff competition, you should be sure that the reduced interest rates are genuine and not just a publicity gimmick. You can calculate the difference in the loan amount between your current and prospective lender by using the home loan EMI calculator.
- You should do a thorough check and understand the policy clauses of your existing loan provider and that of the newer provider with whom you intend to transfer your existing home loan to.
- You should also check if there could or could not be other fees associated with the transfer such as processing fee, stamp duty and other transfer related charges before the transfer of your loan.
Are you eligible for a home loan bank transfer?
Before you make a home loan transfer, here are some criteria you should fulfil:
- You should be above 21 years up to 60 years of age.
- You should have made 12–18 months of timely payments on your existing home loan
- Your employment status should be stable and you should have at least worked for a year in your current organisation.
- Apart from all this, you may even require your CIBIL score, gross family income and a clear credit history.
While it is essential to invest smartly and gain the maximum out of the competitive market, it is also important to be careful and look out for every single detail before making any big decisions. Make sure you understand the home loan balance transfer application process and other related terms and conditions, before making the big move!