Are you paying high interest on your current home loan? A home loan balance transfer could help you save lakhs! At Today Finserv Consulting India, we explain this smart financial move in simple terms.
Understanding Home Loan Balance Transfer
What is a Balance Transfer?
A home loan balance transfer means:
✔ Moving your existing loan to a new lender
✔ Availing lower interest rates
✔ Reducing your EMI burden
✔ Getting better loan terms
How It Works
- New lender pays off your existing loan
- You start fresh EMIs with the new bank
- Enjoy savings from lower interest rates
When Should You Consider a Transfer?
Ideal Situations for Balance Transfer
- When current rates are 1%+ lower than your existing rate
- When your lender refuses to reduce rates
- To get better customer service
- To access additional loan features
5 Key Benefits of Balance Transfer
- Lower Interest Rates (Save 1-2% typically)
- Reduced EMIs or shorter tenure
- Top-up Loan Facility (extra funds when needed)
- Better Service from new lender
- Improved Features like flexible prepayment
Step-by-Step Transfer Process
How to Transfer Your Home Loan
- Check Eligibility with multiple banks
- Compare Offers for best rates
- Submit Documents to new lender
- Complete Property Valuation
- Get Approval and close old loan
- Start New EMIs with savings
5 Crucial FAQs About Balance Transfers
1. What are the charges for transferring?
- Processing fee (0.5-1% of loan)
- Legal/valuation charges (₹5,000-15,000)
- Stamp duty (varies by state)
2. Does it affect credit score?
Minimal impact (5-10 points) due to new credit inquiry.
3. Can I transfer during moratorium?
Most banks don’t allow transfers during moratorium.
4. How much can I save?
Example: On ₹50L loan @8.5% → 7.5% saves ₹3,300 EMI or ₹5.9L total interest (20 years)
5. Is there minimum loan amount?
Most banks require ₹5-10L outstanding balance.
Smart Tips for Successful Transfer
Do’s and Don’ts
✅ Do compare total savings vs transfer costs
✅ Do negotiate processing fee waiver
✅ Do check prepayment charges with current lender
❌ Don’t transfer if tenure is almost over
❌ Don’t ignore prepayment penalties
Why Choose Today Finserv?
Our experts help you:
✔ Compare best offers across 25+ banks
✔ Calculate exact savings potential
✔ Handle documentation & processing
✔ Negotiate lowest rates & fees
Ready to reduce your home loan burden? Contact us today!
