All You Need to Know About Home Loan Refinancing

In an economy where the value of commodities, assets, and investments are constantly fluctuating, it is only natural that the terms on your home loan get an upgrade as well. Be it your current home loan interest rate, the size of the EMIs you pay, or even your home loan repayment tenor - if you feel that these no longer serve their purpose of helping financially, you can seek to refinance your existing home loan for better terms, and sometimes, for more money.

Home loan refinancing, popularly known as home loan balance transfer, is a commonly sought-after solution for sizeable sanctions. It allows you to switch your current home loan to a new lender of your choice for better lending terms, including a possibly lower home loan interest rate and revised EMIs and tenor, based on your eligibility profile. In the process, the home loan balance is subsequently transferred to your new lender, who clears the outstanding dues on your behalf. After a successful balance transfer, you continue to repay your home loan balance as per the new terms to your new lender.

Incidentally, a home loan balance transfer also allows you to access more funds above your ongoing home loan, worth Rs.1 Crore* or higher, as a top-up loan, letting you to address other expenses that are not covered by your home loan. This amount comes with no end-use restrictions, making it perfect for all kinds of big-ticket expenses.

Home loan balance transfer terms tend to be competitive to provide applicants with the most lucrative offers. Bajaj Housing Finance offers eligible salaried and professional applicants the facility to transfer their home loan balance to an interest rate starting from just 6.85%* p.a., with EMIs as low as Rs.655/Lakh. Above this, applicants who are eligible can also seek a top-up on their home loan balance at just 7.80%* p.a.

If you are still on the fence about home loan refinancing, this article highlights the benefits attached to it. Ensure that you understand what the transaction entails before you opt for one.

Benefits of Home Loan Refinancing

It is easy to lose sight of your financial goals when you are stuck paying EMIs that are hard to manage every month. A home loan balance transfer is an apt solution for those who want to revisit their existing home loan contract to renegotiate the terms to match their current financial standing. Here are the benefits of availing of a home loan balance transfer:

1. Improved Home Loan Interest Rate

One of the prime reasons why borrowers consider home loan refinancing is that they're unhappy with their current interest rate. If you have been on the schedule for your EMIs and kept up all the terms of your home loan repayment, you can 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 to a considerably lower number and save more on your interest outgo.

2. Revised Repayment Tenor

For home loan borrowers who are stuck with a repayment tenor that no longer aligns with their financial standing, a home loan balance transfer is ideal. When you switch your home loan balance to a new lender, you can tailor your ongoing repayment tenor to accommodate your financial goals. If you would like to pay higher EMIs to close your loan earlier, you can shorten your repayment tenor, or stretch it out further, to make your EMIs more feasible. Bajaj Housing Finance offers up to 30 years to home loan borrowers, so one completes their repayment comfortably, at their own pace.

3. Sizeable Top-up Sanction

A prominent benefit of seeking home loan refinancing is the additional credit line available if you meet the prescribed eligibility parameters. Salaried and professional applicants who want to seek a top-up loan from Bajaj Housing Finance can do so at just 7.80%* p.a., upon meeting eligibility. Borrowers stand to get a sanction of Rs.1 Crore* or higher, basis their need and eligibility, with the freedom to use the funds as they please, given its zero end-use limitations.

Closing Thoughts

We do the best we can to get the home loan terms that align with our needs, but just like everything else, our financial circumstances are constantly evolving - but that doesn't mean your home loan can't evolve too. Home loan refinancing is a sensible option for those who have a considerable amount to be repaid and can save substantially by revisiting their home loan terms.

Bajaj Housing Finance offers attractive interest rates on home loan balance transfer to help you save more on your interest outflow. The eligibility criteria are easy-to-meet and the process can be initiated online. Apply today and switch to a more competitive interest rate.