You have a home loan and you may want to switch it is a different lender. This is a normal scenario for most borrowers for a number of reasons.
But this is a decision that completely lies upon your preference and requirement. If you think you need to switch the lender then you must identify the problem areas and find a suitable lender for your loan.
Some of the necessary things you need to know prior to switching your home loan.
- One switches to a different lender just to get the benefits of paying a lower interest rate. This allows the borrower to reduce the burden a little and they can repay the principal amount quickly. But you need to consult with your existing lender before your home loan transfer decision and then find a suitable lender as per your criteria.
- It is the first step to negotiate the interest rate with your current lender. If you have a good relationship with your lender and you are a creditworthy person, your existing loan lender may help you to get the amount in a lower rate of interest.
- For home loan transfer you need to wait for the right time. The rate of interest changes as per the current market condition so if you choose the wrong time to switch your lender, you may not get the favorable benefit as you expected.
- The competition is always high and closes so make sure you understand the other perks you get apart from the lower rate of interest. If you see that your previous lender is better even if the rate is high, you must not take a hasty decision and switch it. Rather talk to a loan advisor and then decide.
One of the best ways to apply for a home loan is to apply to an NBFC that gives a flexible loan scheme.