Home Loan Balance Transfer : HDFC Home Laon BT, Indiabulls BT| Tiopuploans in india
A home loan balance transfer is to transfer a debtor’s home loan by charging some processing fees from some borrower to another bank or NBFC. Well, hold your breath tight. This process can become a problem because it is profitable. A balance transfer is generally given priority to a large amount of savings when other bank / NBFC offers a lower interest rate than the current bank and a slight reduction in interest rate. So, borrowers usually prefer this option. It’s second in the list and floating interest rates on the home loan. The first fee for any borrower is that if he is a typical home loan EMI payer he may go to the present bank and ask the bank to reduce the interest rate based on his credibility. If the bank agrees to do so, it is good for him and good, or he should choose the second option.
Many borrowers do not understand the whole piece, they just want the interest rates to below and fail to see the bigger picture. Similarly, other variables can be considered before moving home loan balance transfers. These variables include housing loan, the interest rate for banks, housing loan amount, and gains. Also, the home loan balance process is not easily maintained. First, you have to talk to the current bank regarding balance transfer and then the bank you want to select the bank will check your background on your home background. The current bank will pay an unpaid amount and your new loan begins with the bank you choose. But, in the process of a balance transfer, you charge a processing fee to handle this process. Well, the conditions that are considered to be right for home loan transfer are the following.
Housing loan is recommended for home loan transfer in the initial policy. If you are matured, the process of completion of the tenure of the term of the term is not good for home remittance to transfer the home. Ie a loan by lowering the interest rate to get interested in a considerable period in the home.
For example, you have a 50% home loan of up to 10% P.A. At the rate of interest. You will have to pay interest of Rs 6,580,260 in the interest of the home. The same loan is 9% pa. Then, you have to pay Rs 5,796,711 in the total amount. Therefore, if the home loan balance is transferred during your home loan, you will save INR 783,548 in total period. So, you can save as big if you make the correct calculation of savings in time intervals. If the same thing happens when the maturity comes you can not save a lot of balance transfer. Not less, the bank will charge you a processing fee to transfer the balance.
Your loan amount is significantly higher when home loan transfer is recommended and you can actually make a calculation of what you find to be more generous with the desire to take you home by another bank. If the amount is not so high then it is not worth going for the transfer of the entire housing loan you are benefiting, and if your home loan balance is transferable, your processing fee will be transferred.
For example, if your home loan is transferred by 10% of your home loan, it’s fine, but if you pay 75% of your home loan amount.
Housing loan balance should be done in the first 5 years of the home loan term.
Only a large amount of home loan transfers will be made and will eventually save in years.
Home banking should be transferred when another bank offers better returns on the current bank.
The home loan balance should not be transferred by looking at other bank’s interest rates
For example, if you offer a 9.5 percent interest rate on your home loan, you will get an interest rate of another bank at 9.15 percent interest rate. Then, you should not transfer your home loan through this little difference. According to experts, the interest rate on housing loan interest on the borrower may be up to 5%.
The home loan should not be transferred if the amount of unpaid maturity or housing loan termination is at the end. It does not have any savings on expenditures during the balance transfer process, ie processing fees.
For example, if the home loan balance is transferred, 80% of your amount will be paid to the current bank and only 20% of the total will be spent against the benefit you are receiving. This is not the agreement you choose.
Refer this recent study by creditscorebasicsblog.com – All You Need to Know About Home Loan Balance Transfer with Top Up Benefits 2018
Home loan balance transfer is a simple way to reduce your debt interest payments. Basically, the existing home loan borrower can choose to move his interest to a different bank at a lower interest rate.
- Make sure you have a choice for housing transfer transfer
- You will complete the basic eligibility criteria for credit transfer for the second bank
- Housing loan transfer requires full documentation
And here is the policy->
- Send housing loan transfer request to your current bank regarding the new prospective lender.
- Request your bank to issue a notification (not a certificate of objection) and the best amount.
- Submit the Statement and NOC with the new lender.
- The new lender closes your credit account with the existing bank.
- The current bank transfers all property related documents to the new lender and then completes all paperwork and formality banks.
- Your home loan is successfully transferred to the new bank.