Buying a new home is one of the most significant decisions of an individual’s life. It’s a substantial financial decision. No matter how much you want to try and purchase a house through outright payment, due to ever increasing cost of residential real estate, it is virtually impossible to do so. This is where Home Loans come into the picture.
Additional Info: Looking for 1 Crore Home Loan? Check EMI & Apply
|Lender||Benchmark Type||Interest rate (Min)||Interest rate (Max)|
|Bank of Baroda||RLLR||6.90%||8.25%|
|Bank of India||RLLR||6.90%||8.75%|
|Union Bank of India||RLLR||6.90%||8.60%|
|Kotak Mahindra Bank||RLLR||7.00%||7.60%|
Home Loans are secured loans offered by financial institutions, banks as well as NBFCs (Non-Banking Financial Companies) to enable a borrower to purchase a residential property such as a plot, house or flat. The property acquired through a Home Loan must be hypothecated for the bank till the time you repay the entire loan amount along with interest. The tenure of a Home Loan can extend up to 30 years, and the rate of interest on home loan starts from 6.90% per annum. As the duration of a Home Loan runs into many years, you should try and Avail a Home Loan that offers the lowest interest rates in the market. Due to any prevailing circumstances, such as a low credit score, you might have to take a Home Loan at a higher rate of interest. But after you have worked towards the improvement of your credit score and enhanced it significantly, you have various options at your hand to reduce the rate of interest on your housing loan. But the most effective option that you can avail is Home Loan Balance Transfer (HLBT).
When you take a decision to transfer your existing housing loan to a new lender due to low-interest rates or any other reason, this process is called Home Loan Balance Transfer. Herein your balance principal amount in existing loan account will be repaid by the new lender, and a new loan account will be opened under your name with the new lender, and you will now be making repayments to the new lender as per the new repayment schedule. HLBT offers you two significant benefits:
It reduces your EMI (Equated Monthly Instalment) amount significantly, making it more manageable for you, and it helps you save a considerable amount of money which would have been paid as interest.
Along with low interest rates, some other reasons for HLBT could include a relationship with the lender, availability of a top-up loan or additional frills.
If you are thinking “Where can I get a Home Loan Balance Transfer offer From,” then the answer is with any financial institution of your choice. All financial institutions provide attractive balance transfer offers and discounts when you transfer your existing Home Loan to their institution. If you have been repaying all your EMIs on time and have a good credit score, then there would be numerous balance transfer offers available for you. You can also Apply for a Home Loan Balance Transfer Online through MyMoneyMantra.
Additional Info: Also check AnyRoR Gujarat Land Record
But before you take a decision regarding transfer of your Home Loan balance, you need to consider certain important aspects, such as:
You need to assess the number of EMIs remaining and see how much interest component is pending to be repaid.
You have to check if your existing lender permits HLBT and if it does, are there any charges levied.
You need to check with the new lender regarding the charges levied in addition to the interest rate, such as processing the charge, filing a charge, legal and technical report expenses, and so on.
You must compare the total savings that you would be making through the balance transfer with the costs associated with it.
If the property you have purchased using the original Home Loan belongs to a registered housing society, then you need a NOC from the society before you can opt for HLBT. This no objection certificate is required to ascertain that there are no dues pending towards the society.
Here are some essential aspects of the process of obtaining a NOC from a Housing society for availing HLBT:
Usually, the lender would give you a format in which the NOC must be obtained from the society.
Before you apply for the NOC with the society, make sure that you have repaid all your dues towards the society.
Check the by-laws of the society to ascertain if any NOC is required in the first place. If the by-laws do not have any mention of the necessity of a NOC, then there is no need for you to obtain a NOC.
Apply for the NOC with the society in the prescribed format and pay any charges if mandated in the by-laws.
If the society would have any objections, it shall inform you in writing, and you need to answer those objections categorically.
The Society cannot deny giving you the NOC if there are no dues outstanding from your side.
Usually, the NOC shall be issued in a few days. But if there are no objections raised and the NOC is not released in 30 days since your application, then it would be deemed that the NOC has been given.
It might be possible that the society is not willing to issue the NOC in the format prescribed by the lender. In such a situation you must request the lender to consider the format provided by the society. In order to avail the facility of home loan balance transfer, it is essential that you get all your documents in order before proceeding ahead with the process. Preparing in advance will save you a lot of hassles later on.
To apply online for Best Home Loan in India, Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.