When purchasing a house, many people rely on a home loan to finance the purchase. The interest rate is one of the key factors that determine the cost of the loan. If you’re paying a high-interest rate on your home loan, you may consider a home loan balance transfer. A home loan balance transfer is the process of transferring the outstanding balance of your existing home loan to a new lender offering a lower interest rate. Here are some things you need to know:
You may lose some of the benefits you had with the old lender, such as prepayment options, loan tenure, and foreclosure charges.
You may incur some costs associated with the transfer.