A home loan is, usually, a long-term loan where the repayment tenure can extend up to 20 years or more. During the loan tenure, there is an option of home loan balance transfer, and in many cases, lenders also offer the top-up loan facility with such transfer.
Is the balance transfer with a top-up loan facility worth it?
Yes, it is! However, before delving into the advantages of a home loan balance transfer with a top-up facility, let’s have a quick look at the concept.
What is a home loan balance transfer with a top-up loan facility?
A home loan balance transfer is the transfer of your existing home loan from one financial institution to another. You can opt for a balance transfer of your home loan during the loan tenure to avail of lower interest rates offered by another lender.
The top-up loan facility, on the other hand, allows you to avail of an additional loan on your existing home loan. So, a home loan balance transfer with a top-up loan facility allows you to transfer your existing home loan to another lender and also avail of a top-up loan if needed.
Benefits of home loan balance transfer with a top-up loan facility
Here are some of the advantages of a home loan balance transfer with a top-up loan facility –
- Ease of transfer
Firstly, transferring your existing home loan is quite simple. You can compare the home loan interest rates and opt for a lender offering the lowest rates. Then, you can make an application for a balance transfer and transfer the loan in a few simple steps.
- Lower interest rates
The main benefit of a home loan balance transfer is the possibility of reducing the interest rates on the loan. Borrowers usually resort to a transfer to reduce their home loan interest rates and save on the EMIs. A lower interest rate makes the loan affordable and also helps you save money every time you pay the EMI of the loan.
- Better service
In some cases, borrowers opt for a balance transfer facility if they are dissatisfied with their existing lenders. Borrowers look for reputed lenders who provide better service on their loan accounts and then they transfer the loan to enjoy better and more convenient services from the lender.
- Availability of additional funds
The top-up facility is the deal clincher in the case of a balance transfer of a home loan. This gives you the option to avail of an additional loan on your existing home loan account for your financial needs. The interest rates for top-up loans are usually lower than personal loans and you can avail of funds for meeting any personal or commercial needs, no questions asked.
Many borrowers opt for the home loan balance transfer if they find a better deal with another lender. The addition of the top-up loan facility is like icing on the cake. It offers additional funds at lower interest rates.
So, if you are an existing borrower, compare home loan interest rates across lenders and then opt for the balance transfer option to avail of the aforementioned benefits. Use the home loan EMI calculator to find the most affordable EMI so that the balance transfer helps you save money on every EMI. Also, check your home loan eligibility to ensure that you are eligible for the balance transfer with a top-up loan facility with the lender that you have selected. Choose a reputed lender not only for lower interest rates but also to get the best services on your loan account.