Home loan transfer offers many benefits. However, before you get the transfer going it is important to consider a few points to ensure that your decision is a success and does not backfire. Read on to find out some important information you must mull over before opting for a home loan transfer.

First and foremost, it is important to know that home loan balance transfer generally comes with a processing fee of 1% payable to the new bank. This is an important point to consider as it may render the savings negligible if the amount to be repaid is too little.

However, the processing fee is not pegged at 1% as different banks charge differently. Additionally, there can be legal charges, valuation fees, stamp duty, and other charges that come with the loan. All the costs that are associated with the new loan are binding on the refinance as well.

It is, therefore, better to estimate the exact difference in the amount before refinancing the loans. Ideally, a difference of at least 0.5% from the existing rate is considered to be good enough for savings post-processing fees and other charges. It is also important for the borrowers to negotiate hard with the lenders for better rates before switching for refinancing as then the switch would be less expensive and more convenient.    

It would be worth recounting here that the State Bank of India (SBI), the country’s biggest lender, has come up with a host of offers for potential home loan customers. Kotak Mahindra, on the other hand, has reduced the home loan interest rate by 0.15% to 6.50%. Punjab National Bank (PNB) has cut down the rate of interest on home loans exceeding Rs 50 lakh by 0.50% to 6.60% while the Bank of Baroda (BoB) has come up with a waiver of 0.25% on the existing applicable rates for home loans.

A click here can help you avail home loan from the top lenders of the country at the most competitive rates. With IKL by your side, you can expect nothing but the best.