29 NOVEMBER, 2021

Your home loan can span for decades. Sometimes, in this duration, the terms of the loan change drastically. You might have availed a loan at a lower rate, but in a few years, it could witness a massive rise. Unfortunately, sometimes the opposite happens too. Few years down your tenure, you could realize that you are paying a much higher home loan interest rate than the one currently offered. This could be disturbing and expensive for you. Thankfully, you have a solution - refinance. With Kotak home loan refinances, you can easily transfer your home loan to a lower interest rate and save money. Read on.

How does home loan refinance work?

To transfer your loan, you need to close the existing loan and apply for a home loan balance transfer. Once your application is approved, the new lender pays off your outstanding balance to the existing lender. You then start paying the remaining EMIs to the new lender at their interest rates.

Why refinance your home loan with Kotak Mahindra Bank?

  • Quick approval and disbursal- Kotak Mahindra Bank provides quick approval on your loan application. Moreover, once you complete all the formalities, you can get the loan amount disbursed in your bank account within a few hours.
  • Low-interest rates- We offer one of the lowest housing loan interest rates available in the market. By opting for Kotak home loan refinance, you can get a loan at the rate of 6.5%. This can help you reduce your interest cost and save money.
  • Top-up loan- With us, you can get a top-up home loan easily. You can use this top-up loan amount for any purpose, be it a medical emergency, renovating your house, spying bills, etc.
  • Customized installment plans- By transferring your loan, you can opt for customized installment plans and opt for a tenure that helps you get a comfortable EMI.

Things to note while transferring your home loan

  • Remaining tenure - The interest component in your EMI is higher at the beginning of the tenure. Therefore, you must strive to switch your loan in the initial years of your tenure. Before you apply for a home loan refinance, check your remaining tenure. Switching in the later years of the tenure might not help you save much.
  • Savings- There are certain costs associated with transferring the loan, which you must consider. Before you opt for home loan refinance, you must do a cost-benefit analysis to ensure that you save more than you pay for the transfer cost.
  • Lender’s approval- Before applying for the home loan balance transfer, you must read the terms and conditions of the existing lender. Many lenders restrict the borrower to transfer their housing loan. You must take the approval of your existing lender for the loan refinance.

Home loan refinance can help you restructure your loan by reducing your interest rates and adjusting your tenure. However, you must ensure that you meet the lender’s eligibility. You can use the home loan balance transfer EMI calculator to see the reduction in your EMI with the refinance and proceed with the application.

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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.