Sunil Chedda, a stock market analyst in Chennai, was in the process of applying for a Home Loan so he and his family could live more comfortably in a home of their own. His application was approved, and he bought a larger apartment that everyone was happy with. However, after the third year of repayment, he began suffering from bad experiences with his lender. Not only was the lender slow to respond to requests, the bank was also displaying inefficiency at maintaining the records of his past EMI payments. Another factor that forced Sunil to reconsider his present lender was that he wanted to make the most of the lower interest on Home Loans post demonetization.

After a pointless discussion with his existing lender, he realized he needed a better solution. When he consulted his mentors, they advised him to seek a Home Loan Transfer. He considered the move taking into account the time left on his Home Loan repayment, the charges and fees he would incur and the money he would save. Seeing that the advantages of a Home Loan balance transfer were too many to ignore, Sunil went ahead. Today, 10 years later, Sunil is still happy with his decision and has ended up saving a large sum on his Home Loan.

You can also experience the numerous benefits of a housing loan balance transfer like Sunil if you take certain measures. The most important factor for a successful transfer is timing.

The Best Time to Seek a Home Loan Balance Transfer

1. When interest rates on Home Loans are low: The interest rates for a Home Loan can fluctuate over time, but currently, they are on an all-time low. It is best to consider a balance transfer when the rates are low in order to save more.

2. At the beginning of your repayment tenor: It is best to transfer your Home Loan when you are at the beginning of your repayment tenor. This helps you save more, even if you account for the money you will have to spend on carrying out the transfer such as processing fees, administrative charges and conversion fees.

3. In case your top up loan is rejected or has high interest: A top up loan is an additional loan that is given to an existing Home Loan customer, and may be used for any purpose, be it home renovation or medical reasons. If your existing lender denies your request for a top up loan or has a high interest rate on a Top Up Loan, do a loan balance transfer to a new lender who has more affordable top up loans available for you.

4. To renegotiate terms and conditions of your Home Loan: Opt for a Home Loan balance transfer when you want to reset the terms of your Home Loan. These may be regarding lower or no charges for prepayment, reduction in fees on foreclosure and other benefits like an EMI holiday. Check if there are other lenders who can give you what you want, and make a switch to enjoy the benefits.

How a Home Loan Balance Transfer can Benefit You

A Home Loan balance transfer can help you in numerous ways:

1. It can lower your total EMIs by a reduction in interest rate

2. It can help you get a longer repayment tenor, thus reducing your monthly EMIs

3. It can help you get better and more beneficial terms

4. It can offer you an affordable top up loan

5. It can help you experience better customer service

Author's Bio: 

I am a Financial Advisor with an experience of more than 7 years.I had worked for top Financial Firms in India and has been a visiting faculty at many reputed institutes.

I have done my post-graduate in Business Economics, from Princeton University, USA. During my free time, I teaches children from marginalised sections of society and also work on my Blog.