Interest rates on home loans are at historic lows with eight lenders pegging their best rates at 6.65-6.8 per cent. If you are paying an interest rate that is significantly higher, consider a rate reset with your existing lender or a balance transfer to a new one.
When should you shift?
A balance transfer involves costs, so there must be a considerable difference between your current and new rate.
“A balance transfer usually makes sense if there is a difference of at least 50 basis points between your current loan rate and the new one,” says Adhil Shetty, chief executive officer (CEO), BankBazaar.
