17 MARCH, 2022

Financial institutions keep revisiting the terms of their home loan plans to attract more customers. So, if you have taken a home loan a while back, it is normal to find the latest plans offering better benefits. However, this does not mean that you have missed out on a good deal. Lenders allow borrowers to opt for a home loan balance transfer, which involves clearing the outstanding loan amount with the current lender and transferring it to another for revised terms.

Borrowers mostly prefer going for a balance transfer for a lower interest rate to ease the EMI payments, but it could also be to get a better repayment tenure, top-up loan, or better service in general. If you are thinking about transferring your home loan, it is advisable to first use a home loan balance transfer calculator.

Take a look at why it is so important to use this calculator before transferring your loan:

1. A home loan balance transfer calculator helps in displaying the revised EMIs after the transfer

Most borrowers opt for a home loan balance transfer to ease their current repayment plan. Now, the only way of knowing whether the new repayment plan will be better is to be aware of the new EMIs. This is exactly what a home loan balance transfer calculator helps with. This calculator will display the revised EMIs based on the new lender’s terms. This will also help you in deciding whether the revised interest rate offered by the new lender makes the repayment easier.

2. This calculator will help borrowers to learn about their savings from the transfer

Now, going for a home loan balance transfer is not just about making the repayment easier, but also about saving money. A home loan transfer calculator helps in displaying the exact amount that you end up saving by going through with the transfer. You can then decide whether to go ahead with the transfer or not. Do note that it is also important to consider the additional charges involved in the transfer such as the processing fees or administration fees.

3. It provides accurate results and is very convenient to use

Before a home loan balance transfer calculator was available, the only way of finding out about a loan’s EMI payments was through manual calculations. Manually calculating the monthly instalments of a loan was quite time-consuming and could lead to errors. These errors could later cause problems in the repayment of the loan. Compared to this, a home loan balance transfer calculator is a much safer bet. This calculator provides accurate details regarding the EMIs of the loan. Using it is simple too; all you have to do is provide information regarding the loan amount, tenure, and interest rate, after which the calculator will display the results in no time.

The best part about a home loan refinance calculator is that you can use it for free! Head over to the Kotak website to access the calculator and use it to understand whether transferring your loan is going to be beneficial. 

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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.