The current home loan balance transfer can prove to be better for you. You can get relief from transferring home loan from one financial institution to another. If you also want to switch or transfer your home loan to another bank or institute, then it is important to compare all available home loans to ensure that you can get the best deal. Come, we discuss some such things here only after considering that you should choose the option of home loan balance transfer.
Talk for low interest rate
Before deciding on home loan balance transfer, try to interact with your existing bank for a low interest rate. If you have good relations with them, they can be more inclined to consider your credit history and repayment capacity favorably.
One thing to note, the repo rate-linked lending rate loan is directly related to the repo rates of Reserve Bank of India (RBI). The repo rate is the rate on which banks borrow money from the central bank ie RBI. This means that interest rates on your home loan are greatly affected by the repo rate fluctuations. When there is a decrease in the repo rate, it can work in your favor by reducing the interest rates, which can reduce your EMI burden.
Check CIBIL score
It is important to review your CIBIL score before applying for home loan transfer. These scores serve as an important eligibility factor for your transfer application. The low credit score can significantly affect your transfer application, indicating that you may not be as much worthy of transfer.
Know the fees involved
When taking a loan from a financial institution, it is important to know about the additional charges involved. If you are thinking about transferring your home loan to another bank, then you may face various fees including processing fees, application fee, administration fee, inspection fee and more. This applies to both your current lender and new lender. Always make sure that the total amount you pay is less than your interest amount.
Read the terms and conditions carefully
Most people make a common mistake while applying to transfer home loans, that is not carefully read the terms and conditions. This can be a great negligence because this part contains all important information which should be carefully considered.
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