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Writer's pictureReena Gupta

Why And When Should You Use A Home Loan Balance Transfer?


Housing loans can become a burden due to the high principal loan value involved in them. Real estate investment is one of the most expensive ones in the market and can be undertaken only with the help of a housing loan. It is not a wise decision to exhaust the entire savings and income in order to get a housing property.


Therefore, with the advent of home loans, millennials and individuals are able to own their own property. If you are finding it difficult to repay your housing loan, you can always avail of the home loan balance transfer offer.


What is a home loan balance transfer?

Housing loan balance transfer is the process where the outstanding balance of a housing loan is transferred to a new loan provider. The transfer is actually done when the home loan interest rate is very high and it is becoming a financial burden for the individual to repay the loan.


When should the housing loan balance transfer be done?

Housing loan balance transfer should be done by individuals when it is becoming difficult to repay the housing loan. If you are finding it difficult or struggling to pay the monthly installment of housing loans, you need to go for a balance transfer. This way, you will actually be able to reduce the financial burden of paying a high amount every month.


Benefits of housing loan balance transfer:
  • With a housing loan balance transfer, you always get a low rate of interest. You need to search for the loan provider that offers the best rate in the market, which will bring down the housing loan monthly installment amount. The burden of paying a high amount every month will be reduced with a low rate of interest.

  • You will find favorable terms and conditions that you were not getting previously. With favorable terms and conditions, borrowing always becomes easy for the individual. Make sure you negotiate the terms and conditions to get the borrowing in your own hands.

  • Choose the right home loan tenure so that the monthly installment amount is under your capacity to pay. If you believe you chose the wrong tenure in the past, now is the time to get a new one.

  • When you transfer your housing loan to a new loan provider, you get a new source of funds. It helps you meet the instant need for cash if you have any.


Wrapping up

When you need a home loan for salaried individuals, make sure you fulfill the home loan eligibility criteria. Without having all the home loan documents required, you will not be getting the best home loan interest rate.

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