Home First
Home Loan Balance Transfer
You have realised that you are paying a much higher interest rate on your home loan, do not worry. You have the option to shift your existing home loan to Home First Finance Company at a lower interest rate and on better terms. Learn about HFFC Home Loan Balance Transfer from this article and avail of the benefit.
Home First Finance Company Home Loan Balance Transfer Details
Home Loan Balance Transfer is an option wherein you can shift your loan from the existing lender to another lender, providing a home loan at a better rate to cut down the loan cost. HFFC Home Loan Balance Transfer facility is available up to a maximum of Rs. 50.00 lakhs. Read on for the complete details of the facility.
Home First Finance Home Loan Balance Transfer is a good option if looking for a home loan at better interest rates with good customer service. The details of the HFFC Home Loan Balance Transfer facility are given below:
| Purpose | Take over of the existing home loan liability with a better interest rate to make the home loan more economical |
|---|---|
| Loan Quantum | Takeover facility is available up to a maximum of Rs. 50.00 lakhs |
| Repayment | Extended repayment period beyond the residual repayment of the existing loan with a maximum of 25 years |
| Interest rate | 8% to 18% depending on the income, loan quantum and credit score of the borrower |
| Processing fees | 2% of the loan amount |
| Prepayment charges | No prepayment charges if the loan is availed of by individuals at a floating interest rate. |
Before opting for the home loan balance transfer, it is essential to ensure the following:
- If you have had a long relationship with the existing lender, you should first try to negotiate for a better rate before contemplating the balance transfer. You will be able to save on the prepayment/preclosure charges that the existing lender will collect and also the processing charges for the new loan that the new lender will collect.
- Calculate the actual saving on the loan cost before going in for a home loan balance transfer. If the difference in the loan cost due to the lower interest rate is worthwhile after providing for the prepayment charges/processing charges, you can apply for the balance transfer.
- A home loan balance transfer opted for during the initial repayment period will be worthwhile. If the new lender provides an extended tenure beyond the residual tenure of the existing loan, then you can consider the balance transfer if you want to lower the EMI burden.
- A lower interest rate can be luring. Nevertheless, you should read the terms and conditions of the new lender to ensure that there are no hidden charges.
Home First Finance Home Loan Balance Transfer Features and Benefits
The features and benefits of Home First Finance Home Loan Balance Transfer are:
- The interest rate is competitive, and if the repayment track is sound and the credit score is above the desired level, then the scope for further negotiation of interest is given.
- You can even opt for a balance transfer of the existing home loan if the customer service of the current lender does not delight you.
- The customer service at HFFC is commendable. You can experience their excellent customer service right from the stage of applying for a balance transfer facility with them.
- HFFC also provides a top-up loan in addition to the balance transfer if you need additional funds depending on your eligibility.
- There is extreme transparency with regard to the charges collected for the balance transfer. There will be no hidden charges.
- Nominal processing charges at 2% of the loan amount.
- Prepayment is permitted without any charges if an individual avails of the loan at a floating interest rate.
Home First Finance Home Loan Balance Transfer Eligibility Criteria
The eligibility for the Home First Finance Home Loan Balance Transfer depends on the following criteria:
- If the home loan was availed to purchase a flat, then the flat should be ready for possession/occupation.
- If the home loan was available for residential property construction, the structure should be complete, and the completion certificate should be available.
- A minimum of 12 EMIs should have been paid to the existing lender.
- The repayment track with the existing lender should be satisfactory,
- There should have been even a single delayed or missed out EMI for the existing home loan.
- The credit score at the time of applying for the balance transfer should be 750 and above or should not have declined from the level it was at the time of the existing loan.
Home First Finance Home Loan Balance Transfer Interest Rates
The rate of interest for Home First Finance Home Loan Balance Transfer is 8% to 18% p.a. The interest rate depends on the loan amount, credit score and income of the borrower.
HFFC Home Loan Balance Transfer Processing Fee and Other Charges
The preclosure charges of the existing lender for closing the loan before maturity and the processing fee collected by the new lender for opening a new loan account for the outstanding balance should be considered before opting for the Home Loan Balance Transfer. If the interest cost saved is much less than the prepayment charges and the processing charges, then the balance transfer option will not be worthwhile.
The processing schedule and other charges for HFFC Home Loan Balance Transfer are given below.
| Charges for | Details |
|---|---|
| Processing of the loan | 2% of the loan amount |
| Dishonour of ECS/NACH/Cheque | Rs. 500 plus GST for every instance |
| Late payment charges | 2% of the delayed EMI amount plus GST |
| Retrieval of documents | Nil |
| Prepayment | Nil for the loan availed of by individuals at a floating interest rate |