If you are looking to transfer your home loan balance, it makes sense to understand strategies or ideas that will propel speedy and profitable transfers. This is the most important part of taking up a home loan balance transfer. Check the amortization table to review the amount of the principal and interest paid. If you have paid more interest than the principal, it will not be advisable to opt for a transfer. However, if you have paid a considerable amount of principal amount already, then it is the best strategy to shift to a lender, who offers lower interest rates.

Some borrowers want to opt for a home loan transfer for other reasons such as prepayment clause, denial for extending the loan tenure or denial for a top-up loan. You must opt for the lender that offers these services within your next loan documentation. Additionally, the mortgage organizations throw in freebies like insurance, credit card, etc. You must be cautious while entertaining these offers as these customized offers may not add any value to your financial life. When you choose to opt for a transfer, you must keep the following factors in mind as they will affect your expenses.

Repayment track record:

A perfect repayment track record is essential. No new lender, bank or housing finance company will accept you as a borrower if your repayment record is bad. No borrower enters the first contract looking for a transfer. If you are not conscious about maintaining a clean track record, it will be impossible for you to get out of it. At times, borrowers want to shift to a new mortgage organization for an extended loan tenure. Without a clean repayment record, you won't find a lender willing to take you on board.

NOC:

You would need a No-Objection-Certificate from your existing lender. You must submit the application for the home loan balance transfer and receive the NOC. Some banks or housing finance companies, however, increase the closure charges to make it more expensive for the borrowers to leave. Keeping that in mind, you must pay attention to this factor before you start the process.

Hidden charges:

Organizations offer lower interest rates to get new customers for this loan and include higher processing fees or hidden charges in the loan agreement. Keep in mind that you are renewing the contract. So, you must take a look at the stamp duty fees, legal charges, valuation fee, technical charges and other processing charges as you will be paying them again. Keep a keen eye on these as well as other hidden expenses in advance. You should look into their terms and conditions document as well to ensure that you are receiving a profitable deal.