In this growing economy, every sector has its competition. One company is attempting to outdo the services offered by another. Customers today are spoilt for choices. If one brand makes you unhappy, you may easily shift to another. Similarly, in the case of a Home Loan, if you are unhappy with the repayment terms, interest rate, or services, or wish to switch to a better lender, you can do so conveniently.

The process of switching lenders for your Home Loan is called a Home Loan balance transfer. To ensure you make the right decision and avoid a more costly loan, the Home Loan Transfer calculator helps you understand the amount you save on EMIs and the overall Loan cost.

Variables you need to enter

The calculator requires a few details, such as the outstanding principal amount, EMI payment, pending term, interest factor, and term requirements. You derive the new EMI charge based on your total savings once you input this data into the Home Loan balance transfer calculator.

Eligibility for Home Loan Balance Transfer

As a Home Loan is a long-term liability, eligibility depends on the person’s age, income, and other relevant factors. You can apply by submitting the lender’s requested documents. Having all your documents in order makes the process smooth. While switching lenders, ensure you foreclose your old Loan and receive all the important documents. This process also attracts foreclosure charges from most lenders.

Interest rates

When you transfer your Home Loan to a new lender, you can get a floating interest rate of 10% per annum if you are a salaried employee. For self-employed professionals, it is 11% per annum. The maximum amount allowed for a Home Loan balance transfer depends on your eligibility. You pay a processing fee of up to 3% and an interest rate conversion fee of 1% of the Loan amount.

Benefits of using this calculator

A Home Loan Transfer calculator offers numerous benefits to its users. You can estimate the potential savings through the transfer and know the amount you may be eligible for. This calculator provides a realistic estimate of your expected repayment term. It saves you time and effort by eliminating the need to conduct multiple queries to understand the EMI amounts and the cost of the loan balance.

A Home Loan Balance Transfer calculator is a useful tool for those who want to transfer their existing balance to a new lender to obtain more flexible terms, such as lower interest rates and EMIs.

Conclusion

A Loan Refinance calculator compares the current Loan terms against the new Loan you may be thinking of. It provides an estimate of the difference between the interest costs, monthly payments, and the overall Loan costs. You receive an overview of the potential savings you can expect after the transfer, including the repayment tenure, interest rate, and other relevant details.