Given the circumstances, it’s okay to obligate to a high-interest rate Home Loan, especially when any other lender is not approving your credit request. However, continuing with the same debt in spite of having the option to opt for Home Loan balance transfer; is not okay at all. It’s a cardinal mistake which will lead to a lot of problems later. First of all, you’ll end up paying more money as interest than what’s required. Secondly, you’ll face a monumental loss while selling the purchased property later. Hence, opt for a Home Loan transfer as soon as you realize there’s an opportunity.
A Home Loan transfer allows you to get your home refinanced and switch to a new lender, offering a lower interest on their housing finance scheme. This consecutively reduces the total payable interest and the size of your monthly EMI. Plus, it leads to a huge amount of savings. Talking about how to go about it, check out the steps below.
- Inform your current lender about your plans. Try to strike a better deal with them, compelling them to reduce the interest rate or offer you a better deal than the existing one.
- If the existing lender doesn’t agree, apply for the balance transfer and let your new lender handle the rest.
- Don’t forget to take a NOC from your existing lender before approaching the new lender. A NOC that you owe a single penny to your existing lender after the balance transfer has been done.
In the end, make sure to consult an expert before taking your final decision.