5 important factors to keep in mind before opting for a home loan transfer
Most of the financial firms have reduced their interest rates according to the instructions of RBI. So, if your bank is charging high-interest rates you can go for home loan transfer at any time. Availing a home loan at lower interest rates will help you save a lot of money.
But, before opting for a home loan transfer to a new bank, have a look at some important factors listed below:
Terms and Conditions of a new bank
Before switching to another bank for a home loan transfer, try to know more about its terms and conditions, policies, deposit amounts etc. First be aware of all the Terms and Conditions carefully and then jump for it.
Calculate the processing as well as other charges
Do they charge any processing fee for the home loan transfer? What are the other allied charges charged by them like technical charges, legal charges, valuation fees? Check and calculate all the charges levied on home loan transfer before opting for any firm.
Calculate the total outgo as interest
Check the total outgo you’ll pay them as interest during the tenure of the home loan. Try to opt for a loan with higher EMIs. It will help you pay fewer interest rates in the form of EMIs.
Other attachments offer
Most of the banks attract customers by offering them personal credit cards, accidental insurance along with the home loan. Before jumping for these offers, ask for all the terms and conditions linked with them and will it affect your home loan cost.
Evaluate all the points before taking the final decision
Why is the bank offering you lower interest rates on a home loan transfer? What all are the profits associated with it? Evaluate each and every point in detail.
Consider all these issues carefully before transferring your home loan to the other vendor.
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