Home Loan Top Up vs Balance Transfer
Posted by Shubham Housing Development Finance Company Ltd. on June 20th, 2022
You are well aware of your repayment schedules if you have taken out a home loan to achieve your aim of buying a dream home. You've budgeted well and are making EMI payments. But what if something unexpected happens that throws your best-laid plans into disarray? An unexpected financial crisis or a pay cut, for example, may necessitate more finances to satisfy your repayment obligations. To assist you to get through the crisis, lenders provide solutions like a home equity loan or a house loan balance transfer.
But if the question on your mind is which of the two is better: home top up loan vs balance transfer, they are options that come with their own set of advantages. While a home top-up loan might help you stretch your budget to cover unexpected expenses, a home loan balance transfer helps you make your current debt more manageable.
Difference between Top-Up Loans and Balance Transfer
Now that you know what a home top up loan and balance transfer means, it’s time to understand which of the two are better: home top up loan vs balance transfer and under what circumstances you may opt for either one of them.
Eligibility Criteria for Top-Up Loans and Balance Transfer
While there are certain distinctions between a home top-up loan and a balance transfer, the two have different qualifying requirements. The criteria for both alternatives are shown in the table below.
Whether you pick a home loan top-up or a balance transfer, it's a good idea to examine your needs first before making a decision. In addition, if you pick a home loan balance transfer, you may also choose a top-up loan. If you choose for a balance transfer, you'll need to see if the new lender offers a considerably cheaper interest rate, which might help you shorten your repayment period. If you choose a top-up, you will receive an additional loan to assist you with other expenses. So, before deciding on a house loan balance transfer or a top-up, assess your circumstances, your financial demands, and your income.
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About the AuthorShubham Housing Development Finance Company Ltd.
Joined: August 25th, 2020
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