Does your Home loan providing bank or lender is charging you
more interest rates than what others are offering? Opt for shifting your home
loan to another lender by taking advantage of lower interest rates on home
loans from other lenders.
Do a thorough market research of new home loan transfer
options. Interest rates usually differ after a fixed amount of loan amount such
as 25-30 lakhs. But there are various points you should remember while
transferring your housing loan to other banks or lenders.
- Tenure Reduction: tenure refers to the time loan for which loan has been approved. Keep in mind, after shifting your Home loan to another lender, your existing home loan tenure should be decreased, so that you can pay off loans faster. Let the EMI’s be same.
- EMI Reduction: If you are not opting for tenure reduction, you should go for EMI reduction. In this, your monthly or quarterly EMI amount should be lower than what you were paying earlier.
- Prepayment Charges: Since there are two types of interest rates applicable, fixed and floating. Floating interest rates home loans can be easily transferred to another lender without any prepayment charges. It cannot be true in case of fixed interest rates. A prepayment fee. A substantial amount of pre payment charges in shifting a loan may cost you even more than previous one.
- Conversion Fee: Conversion fee is charged by your present bank or lender for converting your home loan interest rates to some lower one. It’s usually same as pre-payment charges. If you find it suitable, stick to the same lender with reduced interest rates on home loans.
