Balance Transfers / Refinancing

  • Refinance to a lower floating interest rate home loan now. Home Loan interest rates are already high and are showing a downward trend.
  • Fixed interest rate home loans are ideal only when home loan interest rates are low. Switch to a fixed interest rate home loan after 18 to 24 months when interest rates have bottomed out. SastiUdhari will send out appropriate advisory based on interest rate movement.
  • RBI has waived off pre-closure penalty on floating interest rate home loans irrespective of the source of funds. You are now free to refinance your home loan as many times as you want.
  • To calculate refinance savings, take into account not just the savings in home loan interest expense post the balance transfer but also the processing fee and the mortgage agreement fee.
  • You can also avail a top up loan when you refinance your existing home loan. Top up loans also called home equity loans allow you to unlock the market value of your property.