Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
17 JUNE, 2022
If you are reading this, you probably have heard about a home loan balance transfer facility. A home loan balance transfer, also called as home loan refinance, is a facility where lenders allow you to transfer your loan from one lender to another. It can help you get a lower interest rate, adjust the tenure, or avail better services and facilities. You can switch your loan before your tenure ends to save money on the interest. With one of the lowest interest rates in the market, transferring your home loan to Kotak Mahindra Bank can help you save significantly. However, there are a few costs involved in this facility. Therefore, it is crucial to have complete knowledge about home loan refinance.
How do balance transfers work?
You can transfer your home loan if you have paid at least 12 EMIs without default and have a good credit score. The new lender might also require a minimum loan amount for transfer eligibility.
Once you apply for a balance transfer, you will need to furnish loan documents. The new lender would then pay the outstanding loan amount to the existing lender to foreclose the loan. Once this is done, you can repay the remaining loan amount at the new interest rate.
Why should you opt for a home loan transfer to Kotak Mahindra Bank?
Kotak Mahindra Bank is a leading bank that offers one of the lowest interest rates on home loans currently. With Kotak, you can avail a home loan for a flexible tenure of a maximum tenure of 20 years. Also, you can avail a home loan with easy eligibility documentation and minimum eligibility. Moreover, Kotak Mahindra Bank offers doorstep facility and home loan insurance at easy premiums.
By transferring your home loan to Kotak Mahindra bank, you can get lower home loan interest rates and save money. You can also restructure your loan to get a longer tenure and get better facilities and customer services.
What are the aspects you must consider before switching your loan?
A balance transfer is a convenient means to lower your EMI and get better services if you are not happy with your home loan. However, consider certain aspects before you opt for a home loan balance transfer. The remaining loan amount and tenure should be significant when you transfer the loan. If you transfer at the end of the tenure, you might not be able to save enough as your interest component is paid in the EMI of the initial years of the loan tenure. Moreover, you must check the transfer costs and compare them with the benefit you would get by the transfer. If the transfer cost is more, you might not be able to save much.
With Kotak Mahindra Bank, you can switch your loan and reduce your cost of borrowing. Once you transfer the loan, you can enjoy all its facilities and repay your home loan in comfortable EMIs.
You have already rated this article