How to Transfer Your Home Loan
After you have finished off all the required paper work and bank formalities, your new bank will sanction you a loan based on their current home loan rates. However, for shifting your home loan from the old bank to the new bank, you will need to pay a processing fee to the new bank. The processing fee will cost you around 0.5 percent and 1 percent of the loan applied.
Other than saving on interest, there are other reasons as well to transfer a home loan, such as:
The bank does not agree to change loan terms:
Under some circumstances, you might want to renegotiate certain terms and conditions with your bank. For instance, you might ask your bank to extend the tenure of your loan so that you can pay a lower EMI, but your bank refuses to make this change.
Top-up loan:
At times you may feel the need for taking a Top-Up loan, especially when you need some extra cash to fund for unexpected expenses arising due to a sudden increase in the property value or for home renovation purposes. It may happen that your bank might put down your request for a top up loan, hence in such situation, it's better to go for a new lender.
Service issues:
If you are not satisfied with the accessibility and services rendered by your bank, it may prompt you to switch to new bank.
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