Transferring your home loan means taking up a new loan and paying off the existing one. Although several reasons state the importance of loan transfer, however, some of them prove out to be beneficial.
So, if you are facing difficulties while paying back your home loan, you can switch for loan transfer. Here are some of the reasons that will justify your loan transferring deed.
- Floating to Fixed & vice versa:
While availing the loan, the lender gives you two options; either go for fixed rate of interest or floating. If you think that the decision made at that time isn’t appropriate anymore and you are unable to pay the EMIs on time, you can simply opt for Home Loan Transfer. You can change your interest type as per your comfort level.
- Saving Interest Cost:
What if you get to know that some other financial institution is paying less interest rate on the loan amount similar to yours? You would certainly want to switch to that lender, isn’t it? So, in such a case, if you think you are paying the high-interest rate and someone else is providing you with a lower deal, go for it and get the loan transferred.
- Extra Loan Amount:
Most of the lenders even offer you an opportunity to avail more amount on your current home. This means that as per your loan, you can simply avail an extra amount whenever required. However, you must go for this option only if the lender is providing you low rates, or if you need the extra cash; otherwise, it can be of no use.
- Financial status changed:
Crisis and increments are never fixed. What if you lose your job and are unable to pay the high EMIs? Or, what if you got a hike in the salary and wanted to pay off your debt as soon as possible? In both the cases, you can go for the loan transfer. If your lender isn’t cooperating enough, you have all the reasons to switch.
- Poor Services:
When it comes to luring customers, lenders leave no stone unturned. But, the moment you avail the loan, most of the banks start offering poor services and zero cooperation. So, if you think you are having a tough time dealing with your bank, you must not delay it any further and must get the loan transferred at the earliest.
So, these are some of the compelling reasons that seem appropriate when it comes to getting the Home Loan Transferred. However, make sure you do all the calculations properly before jumping in. There are hidden costs for closing an existing loan sometimes and transferring the loan. Assess your situation thoroughly and then make a decision.
With loan refinancing option at hand, it has become easier to switch your home loan whenever you find a great opportunity or you are encountering some hassles. However, there are always reasons behind a decision. When it comes to the refinancing of the home loan, then what are the reasons to do so? Check out!