Understand Home Loan Transfer Process

What is home loan transfer? Under what circumstance do people opt for it? What are the benefits of having a loan transfer done if you are not happy with your existing lender?

A home loan transfer is usually opted for when a borrower is not getting the home loan benefits that were assured. People may choose to have their home loan transferred if the interest rate is only rising or if there is another company that is offering attractive home loan interest rates and probably several advantages as compared to the existing lender. Home loan balance transfer is also referred to as balance transfer or refinancing.

If you have opted for a home loan with a fixed interest rate, you would be paying a sum consistently based on it. While if the market rates fluctuate, with the interest dipping, you may not be able to have the benefits. This is one of the circumstances you may choose to have your lender changed. Even if you have a home loan with floating interest rates, there can be other companies that can give you better offers.  You may also get additional personalized advantages by having your home loan transferred. Whether you wish to avail better home loan interest rates or have the tenure of your loan increased, these may be fulfilled with some other financial institution that offers you such an option. If there are policy changes you may not agree to with your home loan company, you have a way out other than bowing down.  

The entire process starts with submitting an application with your institution. When you approach the new company to proceed with your loan, you will be submitting a fresh application and your loan request would be treated like any new loan. The procedure of getting started will involve all the similar steps, right from verification of your details to every other process you have gone through before. There would be penalty involved for such mid-termination of your home loan. You also need to know the right time to have a loan transfer done. It doesn’t make much sense of having your loan transferred if you have already repaid a good deal of sum with your current company.

You need to be sure why you want a home loan balance transfer, and understand the steps you will undergo. Ensure the new company is giving you all that you chose to have your loan transferred for in the first place. Keep a check on home loan interest rates at all times. Be wise so that you enjoy a hassle-free home loan process.

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