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Is This the Best Time to Refinance your Home?

By SiliconIndia   |   Thursday, May 18, 2017
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Home loan interest rates are at their lowest in a decade and with RERA coming into action, there’s never been a better time to start thinking about a home loan balance transfer. Here’s how you can make the most of the current economical climate, use the home loan EMI calculator and save big bucks by refinancing your home.

The Real Estate Regulatory Act (RERA), is quickly becoming the game changer it was expected to be and coupled with lower real estate prices after demonetisation, it has led to creating the perfect buyer’s market. Conscientious buyers have already chosen to reap the abundant benefits of this Act, and are now comfortably investing their hard-earned money to buy the home of their dreams.

Roll with the Times—They’re in your Favour Today

If you’re about to buy a house or have recently bought one, you’re in for a real treat. Dueto the amazing benefits provided by RERA, such as more transparency in dealing with builders and increased supervision on timely completion, homeowners can experience trust and fair practices in the real estate sector. With low prices of property and a decrease in home loan interest rates, home loan borrowers can now look forward to more savings thanks to the highly-beneficial home loan balance transferand home loan refinanceschemes, so even if you have an existing home loan, its time get a better deal.

Here’s a List of Why Reasons Refinancing your Home Now Makes Financial Sense:

1. It’s been a long decade

CLSA (Credit Lyonnais Securities Asia), a world-class global investment bank, reports that housing rates have been overshadowed by income growth in the last three years, and the overall affordability is higher in this financial year than it has ever been since 2005. Add to that the attractive home loan balance transfer offers currently in effect. It’s a wonder customers haven’t begun making most out of it.

2. The interest rates are on your side— so don’t spend what you just saved!

Property prices have been stabilized, RERA is in full effect, and most importantly, home loan interest rates have seen a steady reduction. You’re already saving a bunch of money, but is there ever any limit to how much you can save? Not really. Especially if you have the option of refinancing your home loan, which is possible if you purchased your property within the last 12 months. Refinancing or opting for a home loan balance transfer means you can switch lenders to get a better deal with more savings and more repayment flexibility.

3. Make the most of subsidies

Due to the fact that the value of your property determines the amount of loan you can acquire, affordability is at an all-time high. If you buy a property worth Rs.20 lakh, the CLSS (Credit Linked Subsidy Scheme) of the PM Awas Yojna will make buying a first home more affordable forIndia’s middle class. If you earn up to Rs.12 lakh a year you will get a home loan interest subsidy of 4% on housing loans up to Rs.9 lakh. This means you get a total subsidy of Rs.2.35 lakh. If you earn up to Rs.18 lakhs a year, you will get a home loan interest subsidy of 3% on housing loans up to Rs.12 lakhs. This means you get a total subsidy of Rs.2.30lakh. So make the most of these subsidies with a home loan balance transfer to reduce your interest even further, thus reducing your monthly EMIs.

4. Property prices on a slump while your savings are on a rise

A research firm recently stated that the apartments still on sale in the market in 8 cities in India showed a weighted average price reduction of 1.67% sequentially in the last month’s quarter of 2016, so it’s a great time for new and existing home loan borrowers to invest in either their first homes or a second property for investment.

The Process of doing a Home Loan Balance Transfer is Easier Than Ever:

• With a simple online application, you can apply for a home loan balance transfer without any hassle. As long as you fit the eligibility criteria, your application is sure to be approved.

• Submitting your documents for a home loan balance transfer has become easier with lenders offering doorstep service for collection of needed documents.

• A home loan balance transfer can lower your repayment by reducing your EMIs with a lower rate of interest.

• Added to this, when you switch your existing home loan with a new lender or NBFC you may also get benefits such as flexible repayment options, a 3 EMI holiday, no prepayment charges, nil foreclosure charges, etc.

Take advantage of the low real estate prices, low home loan interest rates and other government subsidies and make a home loan balance transfer to enjoy a more affordable home loan. Start by seeing how much you stand to save by using a home loan EMI calculator.


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