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Why Does Refinancing Your Housing Loan With Kotak Mahindra Bank This Year Makes Sense - Explained!
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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.
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Amidst surging inflation and rising home loan interest rates, a way to lower your cost of borrowing is by opting for a home loan balance transfer. Kotak offers competitive housing loan interest rates and loan terms which could help you save a large chunk of money by lowering your overall interest outgo. Hence, you should consider a home loan balance transfer this year, given the rising interest rates in the economy. Here are some reasons that make it a prudent option:
1. Reducing the interest cost
This is the primary reason to consider home loan refinance. While home loan interest rates are linked to macroeconomic interest rate movements, all lenders do not increase the rates at the same time by the same proportion. So, there is a possibility that you can get a lower interest rate even in a rising interest rate economy dependent on your financial profile and the lender’s policies. Even a 0.5 percent reduction in the home loan interest rate can save you a substantial amount of money as home loan tenures tend to run into decades.
2. Topping up your loan
Another benefit of opting for a home loan balance transfer is that when you do so, you can also apply for a top up home loan. The amount of the top up loan depends on your current home loan and the amount that you have already repaid. A top up home loan can come in handy if you have some big-ticket expenses to take care of such as home renovations, debt consolidation, emergencies, etc. Your request for a top up would be easily approved if your loan repayment track record is solid and the value of your property has increased.
3. Better service and terms
Home loan refinancing is also a good option to consider if you are dissatisfied with the service of your current lender. If their customer service is slow or not responsive, if your loan statements are not issued on time, if you are not being assisted properly, you can switch to a lender who will make having a home loan a seamless process. You can also take advantage of switching to better terms when opting for a home loan balance transfer. For instance, you can switch from a floating interest rate to a fixed interest rate and vice versa.
To know whether now a good time for you is to refinance your housing loan with Kotak, make use of Kotak’s home loan balance transfer calculator. This free, online tool will help you conduct a cost-benefit analysis and determine whether switching your home loan from your existing lender to Kotak is going to be beneficial for you. Using a home loan balance transfer calculator, in fact, is one of the first things you should do if you want to look at home loan refinancing.
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