Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Home > What is Home Loan Refinancing? Is it Useful?

Loan for Home

What is Home Loan Refinancing? Is it Useful?

What is Home Loan Refinancing? Is it Useful?

What if there was a way to lower the interest rate on your existing home loan by taking a new one? Yes! Through the refinancing option, you can switch your housing loan from your existing lender to a new one, preferably offering better facilities and service.

Refinancing may even help you close your loan faster and in a more affordable manner. Want to know why refinancing housing loans is a useful choice? Read on.

Why refinancing your housing loan is a good idea

• Lower interest rates

One of the main reasons why refinancing is useful and popular is the possibility of lower home loan interest rates. In the current market, interest rates are at an all-time low. If you find another lender offering lower rates, opting for a new loan will help. You can save significantly on interest costs, thereby reducing the monthly EMI.

• Reducing the tenure of the loan

It could be possible that your financial position (monthly income) may improve over the years. And to a point where you might find yourself capable of closing the home loan sooner than your existing tenure. In such a case, you can refinance the loan and opt for a shorter tenure with the new loan.

Additional Read – Why Should You Opt For Home Loan Refinancing When The Rates Are Low

• Availing better service for your loan

After availing of home finance, you may find that your existing lender’s loan service is not up to your expectations. In such a case, you can opt for a home loan refinancing. But before you do so, make sure you run a thorough background check on the new lender. Go through customer reviews online and not just on the lender’s website. Other than that, you can also ask for personal opinions from people who may have availed of the services of the new lender.

• Switching from fixed to floating interest rates

If you get to know that the interest rates on housing loans are expected to fall further in the future, you may want to shift from a fixed interest rate to a floating interest rate. This switch can help you save on interest cost when the rates fall. But keep in mind that you may be levied a certain charge in the form of a convenience fee to make the switch.

• Opting for a higher loan principal

It is not uncommon for people to take a loan only to find out later that they may need additional funds. If you find yourself in a similar position, consider refinancing your housing loan, as it will help you opt for a higher loan principal with the new lender.

Additional Read –Top 5 Emergency Options to Use For Repayment of Housing Loan EMIs

Over to you

No matter what your reason, if you’re looking to refinance your loan to a new lender, consider switching to Tata Capital. Our interest rates are one of the lowest in the market, starting at just 6.70%. You can choose a principal up to Rs. 5 crores and tenure up to 30 years.

Use our home loan EMI calculator to adjust the loan principal or tenure for a suitable monthly payment.

Apply For Home Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.