How to Increase Your Existing Home Loan Amount: What You Need to Know

Owning a home is a dream come true, but as your financial needs continue to evolve with time, you may find that your existing home loan amount is not sufficient. Increasing your existing home loan amount can be a great solution if you're planning a renovation, expansion, or facing unforeseen expenses. Let's delve deeper into learning everything you need to know about increasing your home loan amount, what is top up home loan and home loan balance transfers along with important steps and factors to consider.

To acquire a dream home loan

Why increase your Home Loan Amount?

There are various reasons to increase your home loan amount:

• Expansion or Home Renovation: To upgrade your home or add new rooms due to family expansion.
• Lower Interest Rates: Increasing the loan can allow you to take advantage of lower home loan interest rates.
• Unexpected Expenses: Medical bills, education costs, or other urgent financial needs.

Increasing your home loan can benefit you without the need for another loan. So, it's important to know the basic requirements and the process involved before applying.

Methods to Increase Your Home Loan Amount

Some of the best methods to increase your home loan amount are:

1. Top Up Home Loan

   A top up home loan is one of the easiest ways to increase your existing home loan. You can get access to additional funds above your current home loan at a lower top up loan interest rate than personal loans without any further documentation. For more details on top-up loans and to calculate your new home loan amount, visit IIFL Home Loans.

2. Home Loan Balance Transfer

   Another option to increase your home loan amount is to transfer your home loan to another lender, who might offer better loan terms like lower home loan interest rates, flexibility in repaying the loan, etc. It is advisable to use an EMI calculator for home loans to determine whether transferring will help reduce your monthly payments while giving you access to more funds.

3. Requesting a Higher Loan Amount from Your Existing Lender

   If you're not interested in a home loan balance transfer or a top-up loan, you can also contact your existing lender to request an increase in the loan. The lender will reassess your eligibility based on factors such as outstanding loan balance, current income, and credit score.

Crucial Factors That Affect Your Home Loan Amount Eligibility

Some crucial factors to take into consideration for a home loan

When applying to increase your home loan amount eligiblity, consider the factors below:

• Credit Score: A high credit score ensures you qualify for the maximum home loan amount. You can check your credit score before applying.
• Repayment History: Lenders are more likely to approve loan increases for customers with a good repayment track record. Any defaults on EMIs will negatively impact your chances and decrease your home loan amount eligibility.
• Loan Tenure: The remaining tenure of your home loan will also influence the decision.

How to calculate the New Home Loan Amount?

Home loan calculation with the help of an EMI calculator

You can use online tools such as the Home Loan EMI calculator to estimate the additional funds required for your home loan accurately. By inputting your desired loan amount, interest rate, and tenure, you’ll be able to calculate home loan amount easily.

Things to keep in mind when increasing your Home Loan

Crucial things to keep in mind while increasing your home loan amount are:

• Processing Fees: A specific processing fee is charged when you apply to increase your loan amount.
• Impact on EMI: Increasing your home loan will also increase your monthly EMIs as well. Ensure you can comfortably manage the new amount by using an EMI calculator.
• Documents Required: Ensure all your documents are updated like income proof, property papers, and tax returns, for quick application process.

Wrapping Up

Increasing your existing home loan can be a smooth way to address growing financial needs, whether for unexpected expenses or home improvements. By knowing what your options are, like top-up loans, you can unlock additional funds while benefiting from better loan terms. However, it's crucial to fully understand the impact on your EMIs and long-term finances. If you're considering increasing your existing home loan amount, visit IIFL Home Loans to learn more and take the next step in securing your financial future.