Outlook Money
Better than repaying home loans, a homebuyer can transfer it into a home loan balance transfer. This would mean lower monthly equated monthly instalments (EMIs) and better repayment terms.
1. Lower Interest Rates And Real EMI Savings: Savings can be huge when a home loan is transferred into savings. Lower interest rates also mean reduced EMIs.
There are options of top-up loans with some home loan transfers where borrowers can take out more money for things like renovations.
There are often hidden fees and some mudy documentation required by lenders. In such situations, switching becomes an upgrade and an option for hassle free service as well.
1. Processing Fees- Before switching, it is important to check the processing fees, as some lenders may even have administrative fees
It is also essential for a borrower to keep in mind that switching a lender may involve heavy paperwork.
One might also have to pay some prepayment charges for closing a loan with an existing lender.
One should be sure to read the complete fee structure of the new lender before switching.