Home loan balance transfer overview
If you hurried into a home loan or if you have a bad experience with your current loan provider, you can always opt for the home loan balance transfer provision. This allows you to move your loan balance from one lender to another without any penalty or interest. The best thing about the home loan balance transfer program is that it gives you a fresh start.
While this is a great option, you should know that some restrictions and requirements exist. For example, the new lender must be eligible for the home loan balance transfer program, and your original loan has to be in good standing with at least 12 months of payments left on it.
You will also have to pay a fee when transferring your home loan amount from one lender to another. Some lenders offer free balance transfers, while others charge a nominal fee. You should also be aware that transferring your home loan amount to another lender will be treated as a new loan, and the interest rate may change.
The Delta Finserv Home Loan Balance Transfer Calculator
To help make a well-informed decision, we have the Delta Finserv Home Loan Balance Transfer Calculator.
This helps you determine whether transferring your mortgage balance onto a different, potentially more-favorable loan would be advantageous. Use the following steps to use this tool correctly and easily:
- Enter the requested information from the existing loan lender
- Enter the requested information from the new loan lender
- Click calculate, and you’re done!
This calculator can help you assess whether a balance transfer is worth it. Since it is free, online, and doesn’t require expert assistance, you can enter the details of various prospect loan lenders, multiple times.
The outcomes of the calculator will help you understand:
- Total saving in cash outflow
- Existing EMI
- Promised EMI
- Savings in EMI
How is Home Loan Balance Transfer Calculated?
Benefits of using a home loan balance transfer calculator
Knowing what you agree to, especially in matters that deal with money, is always great idea. Some of the significant benefits of using a home loan balance transfer calculator include:
- It is easy to use, requiring no involvement of experts. The user only needs to input some key details—such as the existing interest rate and tenure—in order for a prediction about future rates being issued through this solution. You can keep using it again and again with details of different lenders each time.
- A home balance transfer calculator helps you understand how much money will be saved after a transfer takes place.
- Using a balance transfer calculator can help you understand the expected monthly payments after transferring the debt.
- A home loan balance transfer calculator enables you to gauge your expected repayment tenure after switching over and make an informed decision based on that.
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Frequently asked questions
Rate of Interest (ROI) depends on factors such as CIBIL score, income, age etc. If you match all the norms, we can provide the lowest rate available in the market. Currently, the lowest rate prevailing in the Market is 8% per annum, subject to all the conditions being matched.
Loan eligibility primarily depends on the following factors:
- Cumulative net monthly income of the applicant and co-applicant.
- Quantum of loans and credit card outstanding that you already have.
Typically a bank will not give a loan if the total EMI obligation (including the current home loan you are trying to apply for) exceeds 60-70% of your full net take-home salary.
The final decision to grant a loan lies with the credit department of a bank. There are many reasons why a bank may reject your home loan request. Income is one of the eligibility criteria. Other issues include
Pre-closure means a customer wants to close the principal outstanding amount in one go. On the other hand, part payment means a customer wants to repay only a specific portion of the due amount. Please ask our advisor for more details when your loan is processed
Yes, home loan pre-closures are allowed without extra charges as long as the mode of repayment you have chosen is the Floating rate of interest and not a fixed one. In the case of part payment, some banks may restrict the times you can make a part payment per year and the amount you can partly pay in a year. Please connect with our financial advisors or the bank’s loan advisor to clarify all these factors before signing the loan document.