Imagine if you could just transfer all your stress and problems to a different person. Wouldn’t it be wonderful if someone else could take care of your responsibilities? In the modern world, everyone is stressed out for some reason or another. Borrowers are an important mention when it comes to talking about stress. EMIs and high rates of interest have a lot of power to take the peace of your mind away. When it is becoming too much for you to keep on making those monthly payments with lots of added interest, it is time for you to transfer your loan. When you choose to start the Home Loan Transfer Process, you can let out a sigh of relief because many benefits are coming your way.
What is Home Loan Transfer?
Home Loan Transfer is an option you can choose when you want to switch to a new lender offering low rates of interest and better terms of service. This option is extremely beneficial, as you can also borrow a Top Up loan from your new lender in case you need additional funds. It sounds like a win-win situation, and in some cases, it certainly is. However, we highly recommend you weigh all the pros and cons, carefully consider your exact situation, and then take the decision to transfer your loan to a new lender.
When you should and shouldn’t go for a Home Loan Transfer Process
A Home Loan Balance Transfer on the surface looks like a cup of tea that can be enjoyed by everyone, but that is not the case. A Home Loan Transfer is an ideal option on a few occasions. Here are a few ways to understand this better:
• When the new lender offers a low-interest rate that is floating, you should be aware that this rate is going to change and might be even higher than your current lender. In this situation, it isn’t advisable for you to choose to start a Home Loan Balance Transfer Process.
• There are a number of attractive offers that your new lender might offer like fee waivers, low rates, and easy top up but you should read all the terms and conditions carefully to avoid getting into trouble. If the offer is lucrative, you should move forward; otherwise, you should stick with your current lender.
• If you have less than 5 years remaining on your repayment tenure, we recommend not making the switch, as the principal amount will majorly be your EMI so a low rate would not give you much savings. If you are in the early stages of your tenure, it is highly recommended that you make the switch.
Home Loan Transfer Process
A Home Loan Balance transfer process is not a tedious one. It can be applied online too. Here's the whole Home Loan Transfer Process:
• Research for a new lender: Research some new lenders and compare the rates they offer. Also, compare the terms and conditions offered by each lender. Choose the lender with the best options and finalise your decision.
• Request letter: Send a request letter to your current lender seeking permission to switch to a new lender.
• Obtain the NOC or consent letter from your current lender and obtain all the property-related documents.
• Application: Visit the new lender’s website and read the terms and conditions once again to be completely sure of your decision. If you find the terms and conditions suitable, move forward by filling out the application for the loan transfer.
• Offer: After filling out the information, you will see an offer. Choose the offer if it fits your requirements.
• Fees and charges: Pay the required fees and charges after choosing the offer
• Upload documents: Upload all the required documents and wait for approval from your new lender.
A Home Loan Balance Transfer is a lucrative option if all the criteria mentioned in this article match yours. Conducting thorough research about your new lender becomes important when you want to lower the levels of stress and live a comfortable life.