Business How Much Can Home Loan Balance Transfer Calculator Help You Save? Uneeb KhanAugust 10, 20220177 views home loan balance transfer calculator Running a home loan for years is not easy and can burden most salaried and self-employed people. Now you can save on the EMI if you apply for a home loan balance transfer. Even if a small amount can be saved on home loan interest rate with a balance transfer of a home loan to another bank, it can make a huge difference to your finances in the long run. A home loan balance transfer calculator can help you in this regard and help you understand how you can save on the EMIs. What Is a Home Loan Balance Transfer Calculator? A home loan balance transfer calculator is an online tool that helps one know the difference it would make to the home loan EMIs if the home loan is transferred from one lender to another and whether this change would help financially or not. This information is often used by the borrowers to decide on a home loan balance transfer, potentially save up on interest and change loan tenor. It also helps borrowers know how this balance transfer is going to affect their savings. How Can Home Loan Balance Transfer Calculator Help You Save Money? Save Up on Interest Rate – A home loan balance transfer calculator helps you calculate the loan EMIs for the pending tenor at the given interest rate and find out which lender can offer better rates and tenor than your current lender so that your EMI burden is reduced. Even a minor change in the interest rate can help you save up on the interest payment of a home loan and this saving can be used elsewhere or for the foreclosure of the loan sometimes. Thus, this tool helps you calculate and compare interest rates and EMIs if a balance transfer of a home loan is done. Make Savings through Revised Loan Tenor – If your loan repayment tenor is nearing its end, then it is not beneficial for you to make a balance transfer of the home loan to a new bank and the decision will not help you save much. However, if you have a long repayment tenor pending at a higher rate of interest, then the loan can be refinanced or transferred to another lender who is offering a lower interest rate on the home loan for an extended term which can lower your EMI burden and save up on it eventually. Good Credit Rating Can Also Help to Save Up – A home loan balance transfer calculator can also help you know the home loan eligibility criteria for lower interest rates and savings. The CIBIL or credit score gives the lenders a clear idea of your payment patterns and consistency. A low credit score affects your financial credibility and signals to lenders that you are less qualified for a loan balance transfer facility since the new lenders scrutinize your credit score and various other factors. Payments of regular EMIs and other debts help to ensure a higher credit score which increases your financial credibility helping the new lender to have faith in you and offer low-interest rates which can help you save up funds for future use. Save Up on Cost of Transferring Your Loan – Transferring a home loan may sometimes involve pre-payment charges of the old loan, processing fees for the new loan, stamp duty charges, legal/technical fees, etc., which are additional costs that a borrower will incur during the home loan balance transfer process. The home loan balance transfer calculator can help you calculate whether the benefit of a lower interest rate is more than the charges involved in the balance transfer. However, if the cost involved in the balance transfer of a home loan is more than the new lower EMI rates, then savings can be affected and there will be no place to save up. Better Services Can Help to Save – There are many factors that help one to decide on the balance transfer of a home loan to a new lender and the home loan balance transfer calculator helps in making up one’s mind. The new lender can woo you by offering value adds, such as top-up loans, zero balance accounts, flexi-deposits facilities, credit cards, locker facilities, and current accounts to store your surplus funds from the balance transfer of the home loan. The home loan balance transfer calculator can help to calculate how much these added services help the borrower save up apart from the amount being saved on lower EMIs through this transfer. Final Words In conclusion, a home loan balance transfer calculator is an important tool that can help you compare interest rates of different lenders, know the best tenor of loan repayment for you, and ultimately how a balance transfer of home loan can affect your savings and financial future. So, it is best to weigh the pros and cons of transferring your home loan to a new lender and make a well-informed decision. The home loan balance transfer calculator can help you calculate and know how much you can save taking in all the variables affecting your decision. Now that you know the benefits of using a home loan balance transfer calculator, make the best use of it if you are thinking of transferring your home loan to a new bank and making most of the savings you make while paying easy EMIs on your loan.