Doing a home loan balance transfer can help you make the repayment of your loan more convenient and affordable. However, it is important to keep a track of a few things to ensure that you gain maximum benefits from the move. Here are the 5 things you should keep track of when transferring the loan.
1. Ensure you select the right lender
The lender you choose is the major determinant of the success of the move. Before you do the transfer, analyze the market thoroughly and compare various lenders. Go with a lender who offers nominal rates of interest and good customer service. A feasible option is a home loan balance transfer with Bajaj Finserv. You can gain from various benefits like top-up loan, nominal rate of interest, online application and account management, and much more.
2. Get a NOC from your old lender
Before you go ahead with transferring your existing home loan to new lender, it is important to get a NOC from the former. Getting this certificate signifies that you are transferring the balance without the objection of your old lender and increases the chance of the transfer being approved.
3. Make sure you qualify the eligibility criteria
The approval of your balance transfer depends on how well you match the eligibility criteria of the lender. Each lender would have different criteria. Hence, it is important to know the same and provide all the relevant documentation.
Additional Read: Factors That Impact Your Home Loan Interest Rate
4. Be aware of the application procedure and other fees and charges
When you perform a balance transfer, you need to go through an application process again. Be aware of the various modes of application and choose a procedure that you are most comfortable with. It also helps to be aware of all the information and documentation that will be required. Besides this, keep track of the new fees and charges your new lender may levy.
This includes processing fees, secure fees, penal interest on non-payment of your EMI on time, and loan statement charges. Here, the part prepayment and foreclosure charges are most important. For instance, Bajaj Finserv doesn’t charge any prepayment charges if you as an individual borrower on a. It also doesn’t charge you any foreclosure charges if you are an individual on a floating rate.
Additional Read: 4 Ways To Pay Off Your Home Loan Faster
5. Ascertain that the transfer charges are low
Before you seek a transfer, enquire about the charges of the move. This helps you estimate the overall affordability of the decision. It also enables you to organize the finances to pay for the various charges. Going with a lender with low charges lets you save a considerable amount of money.
By doing your research and being aware of all the terms and conditions, you can go with the most affordable and beneficial offering. Remember that balance transfer is best done in the first few years of your home loan tenor, because this is the time you pay more towards the interest than the principal. Use a Home Loan balance transfer calculator to see what you stand to gain from the move.
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