Home loan refinancing or home loan balance transfer is the process of switching lenders to avail favorable terms. If you can negotiate better terms with another lender, then you can transfer your existing home loan to the new lender.

However, transferring home loans without considering the associated fees can land you in trouble. Therefore, contemplate the following points before opting for a Bajaj Finserv home loan transfer.

Points to Ponder Before Home Loan Refinancing

Associated fees: Home loan refinancing has several charges associated with it. Therefore, consider these fees before you opt for a switch. In case they are substantial, then you should reconsider.

Additional benefits: Before opting for this facility, check if your new lender is offering any other benefit or not. Financial institutions often provide facilities like zero-processing fees, top-up loans, etc. with home loan refinancing.

Maintain credit score: Credit score plays a vital role in this scenario. If you can maintain a good credit score, then you will be able to negotiate a better deal.

Timing: If you are planning to refinance your existing home loan, then do it in the early stages of repayment. Since you are paying the lion’s share of your home loan interest in the initial years, switching lenders during this period will enable you to save money.



Home loan balance transfer is an ideal way to reduce your EMIs. Generally, you must pay at least 12 monthly installments to your current lender before you can opt for this facility.