You are a proud owner of your brand new home, which you have taken via home loan from a reputed bank. You are diligently paying your home loan, when suddenly you find that another bank is offering home loans at a better rate, wouldn’t you like to change your loan to that bank, of course.. You will want to. But, that you have to consider a few factors before switching your home loan lender, because you should not regret later, right.
Service of your existing bank is not satisfactory
Sometimes you chose a bank because of its brand and high reputation, but it may happen that in your case, the quality of service may not be that great. Simple tasks, like detailed statement for interest paid might be delayed, the whole calculation of your interest on home loan many be of complex nature, call centers do not respond accurately to your queries. All these signs are an indication that you should change your home loan lender.
Processing fee is costlier
During your loan period, you find that your bank is offering switching to other loan scheme with lower interest rates, but the processing fees is expensive, and the same rate is offered by another bank by charging a lower processing fee, then you should think of switching your home loan to another bank.
When new offers are only applicable to new customers
Based on RBI’s regulations, some bank offer the new scheme to new customer, but charge a little fee from the existing customer to change their scheme and to enjoy the reduced interest rate, then it’s the right time to shift your lender to some other bank.
Working slowly on the rate cuts
After the RBI has announced to cut the policy rates with immediate effect, still your bank is delaying the process and making you pay high interest on home loan, despite of RBI’s announcement. Then its high time that you switch your home loan lender after doing a meticulous research.
Switching home loan
Switching home loan is not an easy task; it requires a lot of paper work, discussion with bank authorities and a brand new processing fee. So before switching, check out all the pros and cons you would like to know. Today, switching a home loan is easier, as many banks are introducing new scheme to lure customer. Just looking at low interest rate is not important, other facts like, customer service, service quality and track record plays an important part in changing your home loan.