The Indian real estate market is at an high and would thrive in the future. Now is a suitable time to invest in residential property. At present, you can buy your dream home at a fair valuation and realise incredible capital gains over time. Besides being a fantastic investment option, buying a home helps you create your safe space, something much needed in the modern world. Buying a home requires a lumpsum amount.
Hence, self-financing the home purchase may not be possible for you. Does that mean your goal of buying a home remains unfulfilled? Not really. Consider applying for a Home Loan to finance your home purchase. You can borrow up to Rs. 5 crore at a competitive interest rate for about 30 years based on your Housing Loan eligibility. The Loan repayment works in Equated Monthly Instalments, ensuring you do not feel burdened.
What is a Home Loan Balance Transfer?
Home Loan Balance Transfer is a facility that lets you switch your Home Loan from your existing bank to another. When you opt for the Home Loan Balance, your new bank fully repays the outstanding Home Loan amount to your parent bank. Then, your remaining repayment happens with the new bank as per their terms.
When can you opt for a Home Loan Balance Transfer?
Considering a Home Loan Balance Transfer is a good decision. Consider all the pros and cons to make a sound decision. Here are instances of opting for a Home Loan Balance Transfer:
- Lower interest rates
The applicable Home Loan interest rates make a big difference to your repayment. Ideally, you should scout for a lower interest rate, as it makes your repayment affordable. Every bank's Home Loan interest rate changes often. Sometimes, you may face a bank that offers a lower interest rate than your parent bank. In such a case, you can opt for the Home Loan Balance Transfer and benefit from the lower interest rates.
- Longer tenures
Consider the remaining repayment tenure when contemplating the Home Loan Balance Transfer. Opting for this service is sensible if a longer repayment tenure remains, as you benefit from the new bank's better repayment terms. However, it is not recommended if you have only a few years of repayment left, as it does not make much difference to your repayment.
- Transfer costs
You need to pay a transfer fee upfront to avail yourself of the Home Loan Balance Transfer facility. The transfer cost adds up to your total Loan amount, so consider it. Opting for the Home Loan Balance Transfer is practical if the associated cost is affordable. Otherwise, you are simply increasing your total cost.