Everything you need to know about refinancing a home loan

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oi-Oneindia Staff

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Updated: Friday, June 10, 2022, 12:12 PM [IST]

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In an economy where the value of commodities, assets and investments constantly fluctuate, it is only natural that the terms of your home loan will also be improved. Whether it’s the current interest rate on your home loan, the size of the EMIs you’re paying, or even the repayment term of your home loan – if you feel these no longer serve their purpose For financial help, you can look to refinance your existing home loan for better terms, and sometimes, for more money.

Everything you need to know about refinancing a home loan

Home loan refinancing, commonly referred to as

home loan balance transfer
, is a commonly sought-after solution for large penalties. It allows you to transfer your current home loan to a new lender of your choice for better loan terms, including a possibly lower home loan interest rate and revised EMIs and term, based on your mortgage profile. eligibility. In the process, the home loan balance is then transferred to your new lender, who clears the arrears on your behalf. After a successful balance transfer, you continue to repay your home loan balance under the new terms to your new lender.

Incidentally, a home loan balance transfer also allows you to access more funds than your current home loan, worth Rs.1 Crore* or more, as a top-up loan, enabling you to meet other expenses that are not covered by your home loan. . This amount has no end use restrictions, making it perfect for all sorts of large expenses.

Home loan balance transfer terms tend to be competitive to provide applicants with the most lucrative deals. Bajaj Housing Finance offers eligible salaried and professional applicants the opportunity to transfer their home loan balance at an interest rate starting at just 6.85%* per annum, with EMIs as low as Rs.655/Lakh. Beyond that, eligible applicants can also request a top-up on their home loan balance at just 7.80%* per annum.

If you are still on the fence about home loan refinance, this article highlights the benefits attached to it. Make sure you understand what the deal entails before opting for one.

Benefits of home loan refinancing

It’s easy to lose sight of your financial goals when you’re stuck paying hard-to-manage EMIs every month. A home loan balance transfer is an appropriate solution for those who wish to review their existing home loan agreement in order to renegotiate the terms so that they correspond to their current financial situation. Here are the advantages of benefiting from a home loan balance transfer:

1. Improved interest rate on home loans

One of the main reasons borrowers consider refinancing their home loan is that they are unhappy with their current interest rate. If you have been on schedule for your EMIs and met all of the repayment terms for your home loan, you may be eligible for a more competitive home loan interest rate with a new lender. A home loan balance transfer allows you to reduce your

home loan interest rate

at a considerably lower number and save more on your interest expense.

2. Revised refund terms

For home loan borrowers who are stuck with a repayment term that no longer matches their financial situation, a home loan balance transfer is ideal. When you transfer your home loan balance to a new lender, you can tailor your current repayment term to suit your financial goals. If you want to pay higher EMIs to close your loan sooner, you can shorten your repayment term or lengthen it further to make your EMIs more achievable. Bajaj Housing Finance offers home loan borrowers up to 30 years, so everyone can repay comfortably, at their own pace.

3. Significant additional penalty

A significant benefit of seeking a home loan refinance is the additional line of credit available if you meet the prescribed eligibility criteria. Salaried and professional candidates who wish to seek a

additional loan

from Bajaj Housing Finance can do this at just 7.80%* per annum, subject to eligibility. Borrowers can obtain a sanction of Rs.1 Crore* or more, depending on their need and eligibility, with the freedom to use the funds as they see fit given its zero end use limits.

Final Thoughts

We do our best to get the home loan terms that suit our needs, but like everything else, our financial situation is constantly changing – but that doesn’t mean your home loan can’t change too. Home loan refinancing is a smart option for those who have a considerable amount to repay and who can save considerably by revising the terms of their home loan.

Bajaj Housing Finance offers attractive interest rates on home loan balance transfer to help you save more on your interest outflows. Eligibility criteria are easy to complete and the process can be started online. Apply today and upgrade to a more competitive interest rate.

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