When Should You Do Home Loan Balance Transfer?
Do you have an existing Home Loan? Are you finding it difficult to pay the high EMIs? Home Loan balance transfer can be your solution.
But if you are willing to look beyond this obvious inconvenience, a Home Loan balance transfer can benefit you in various ways. For one, you can avail of lower interest rate with a different lender. This makes all the difference to your EMI. A higher interest rate means that more often than not, you end up paying more interest than the actual amount of the loan.
Thus, getting a Home Loan balance transfer becomes a good option when you want to save money on the EMI. The amount you save in interest can be invested in something else. If you choose to keep the EMI the same, by choosing a balance transfer, you can reduce your tenure.
However, you should be aware of the right time to get a Home Loan balance transfer. This is usually when the interest rate in the market is down, which will help you save. The documents required for a balance transfer are: proof of identity and residence, proof of income, official letter by your current lender with a list of property documents, official letter by your existing lender stating the current outstanding amount and a photocopy of the property documents.
Here is an infographic that will guide you when is the right time for you to transfer your Home Loan to a new lender: