Home Loan Balance Transfer: Overview
Home Loan Balance Transfer refers to the process of transferring one's Home Loan from one lender to another, primarily in return for better interest rates and sometimes, also added benefits and better service. This article focuses on the Home Loan Balance Transfer process.
Borrowers must know that opting for a Home Loan Balance Transfer proves lucrative only when one opts for this facility during the initial years of a loan tenor when a considerable portion of the interest is yet to be repaid. The Home Loan Balance Transfer process involves a Home Loan Balance Transfer fee and when borrowers opt to transfer their Home Loan later in their Home Loan journey, the money one saves by transferring their Home Loan to another lender is usually either lower or equal to the Home Loan Balance Transfer fee.
Step-by-Step Guide on the Home Loan Balance Transfer Process
Start by Researching What Different Lenders Have to Offer
The first step in getting a Home Loan Balance Transferred to another lender is researching what different lenders have to offer and which lender should you transfer your Home Loan to for maximum benefits.
Negotiate with Your Current Lender for Better Interest Rates
Next, try to negotiate with your current lender and try to convince them to offer you a better Home Loan interest rate. If you can re-strike a deal with them, you will save the Home Loan Balance Transfer fee and they will be able to retain another client.
Obtain NOC from your Current Lender
If your current lender is not open to negotiations, let them know via. an application form or letter that you wish to transfer your Home Loan to another lender. After receiving your request, they will release a NOC or no-objection certificate.
Submit this NOC to Your New Lender
Once you have the NOC, begin the Home Loan application transfer process with your new lender by submitting all the required documents along with the NOC Letter.
Close the Existing Loan Account
Once your new lender has approved your Home Loan Balance Transfer application, they will repay your entire pending loan amount to your last lender. After this, your previous lender will close your loan account.
Also Read: Key Benefits of Balance Transfer to Bajaj Housing Finance
*Terms and conditions apply.
