14 August 2011
My Bank Charges More as Transfer Charges
When and existing home loan borrower has to transfer their home loan to another bank or reduce their EMI by doing total or part prepayment then the existing home loan lending bank will charge you an extra transfer fees. With so many fluctuations in the financial market and interest rates going high the borrowers have to keep searching for loopholes to come out of their loans.
Many borrowers are also searching for cheaper options to repay their home loans faster and also save precious money paid as interest. There are many banks and private lending institutions that are happy to lend loans to the borrowers who have an existing loan with other banks. As we all know that banks offer loans to new customer at a lower rate of interest, all accommodations are done to get the new home loan borrower. But what about the existing home loan borrowers who are already committed and are paying off their loan. They have to face the increased interest rates and increased EMIs with a drop of any change in banks policies.
With this situation many borrowers decide to shift their loans or transfer their loans to a better option available in the market of home loans. Now here comes the jolt as they are made to pay a heavy amount to come out of their loan or payments as administrative charges and transfer fees are taken which the borrower has to pay for the remaining loan amount. If your bank is charging more than other banks either you have a talk with the administrative staff and come up with some decision and arrangement. Or when they have such heavy transfer charges they would be willing to make changes in their bank policies to maintain their old customers. Here they will come up with suggestions and advice for the existing home loan customers. Some banks also try to increase the loan repayment tenure to accommodate with the same EMI amounts every month.
All banks have a clause where they can change their bank policies after every two or three years and with this loophole they always have the upper hand in matters of loans, any way they always will have the upper hand as they have the money! With so many options you too will get a home loan at a cheaper rate becoming a new customer than being an old loyal!