Refinancing - A Hope for Existing Home Loan Borrowers

If you are currently repaying a home loan and find it difficult to make regular EMI payments due to unforeseen circumstances or rising medical expenses, you can still avoid defaulting and make use of lower home loan interest rates prevalent in the market. You can do this by asking your lender to revise your home loan interest rate or by refinancing your home loan with another lender.

In case your existing lender cannot entertain a revision, a home loan balance transfer can be the right solution for you, helping you save money now and in the future. You can use tools like the home loan EMI calculator to compare home loan interest rate offers from various lenders and select the best interest rate.

Take a Home Loan Balance Transfer with a reputed financial institution like Bajaj Finserv to enjoy refinancing on competitive interest rates. This also gives you access to a number of benefits like online account management, doorstep document pickup, easy online application, a quick top-up loan, zero charges on prepayment and foreclosure, and a lengthy tenor of 20 years. All these factors along with lower EMIs will make repayment simpler and more affordable for you.

Here is how a home loan balance transfer will help you financially.

You can Clear your Debt Faster

Switching your home loan with a lender offering you a competitive home loan interest allows you to clear your pending EMIs in a shorter amount of time. This is because lower interest rates reduces your overall interest obligation on the loan and therefore bring the EMIs within your budget. Additionally, if you receive a surplus of cash or witness a steady rise in your income levels, you can sign on for a higher EMI or make part-prepayments or even foreclose the loan at a nominal or nil charge to pay off your home loan earlier than planned.

You can Save More with Lower EMIs

When you refinance your home loan, the reduced interest rate allows you to pay smaller EMIs, so that you do not have to strain your pocket. Further, during the balance transfer, you can also choose a longer tenor, which also results in a lower EMI. This will help you manage your finances effectively and address your other commitments such as rent, education fees, and more.

You can Benefit More by Reducing the Costs Involved

A home loan balance transfer does not have to be a long or exhausting endeavour. Some of the costs that you will have to keep in mind while choosing refinancing are processing fees, application fees, and foreclosure charges with your existing lender. The processing fees start at 1% of your loan amount and vary across lenders. However, you must keep an eye on the charges that your new lender levies on loan statements, EMI bounce fees, and more. This will help you choose a lender who has transparent costs that will help you keep to your budget more effectively.

When you choose to refinance your home loan, ensure that the costs incurred while switching do not exceed the amount you save on the new EMIs. Be sure to use the balance transfer calculator in advance to check how much you stand to save.