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 should know that opting for a Home Loan Balance Transfer proves beneficial when one opts for this facility during the initial years of a loan tenor. As during this period, 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 amount one saves by transferring their Home Loan to another lender can be either lower or equal to the Home Loan Balance Transfer fee. Borrowers should keep these fees and charges in mind while transferring the loan amount to maximise their savings.
Step-by-Step Guide on the Home Loan Balance Transfer Process
Start by Researching What Different Lenders Have to Offer
You can start by researching what different lenders have to offer and which lender is offering you maximum benefits on a Home Loan Balance Transfer.
Negotiate with Your Current Lender for Better Interest Rates
You can also try to negotiate with your current lender for a more competitive Home Loan interest rate. If they offer you a more favourable rate, you can save the Home Loan Balance Transfer fee and benefit from a more convenient EMI without changing your lender.
Obtain NOC from your Current Lender
If you have decided to transfer your Home Loan to a new lender, let the current lender know that you wish to transfer your loan. After receiving your request, they will release an 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 transfer the 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.
