Highlights
- What is Home Loan Balance Transfer?
- How Does Home Loan Balance Transfer Work?
- What are the Benefits of a Home Loan Balance Transfer?
What is a Home Loan Balance Transfer?
If you are servicing your Home Loan at an interest rate that is no longer favourable, or you are struggling to keep up with your EMI commitments with your current lender, you can consider transferring your Home Loan to enjoy reduced interest rates and EMIs – avoiding the chances of defaulting.
The Home Loan Balance Transfer process involves migrating the outstanding Home Loan balance to a new lender at a relatively competitive interest rate.
The factors you must consider before applying for a balance transfer are as follows.
- The size of your outstanding loan amount
- The repayment duration you have left
You may not need to begin the Home Loan Balance Transfer process if the remaining loan amount is small or the duration of the loan is nearly over. We advise this because most lenders will require a token to kick-start the Home Loan Balance Transfer process.
A Home Loan Balance Transfer helps shed the burden of an expensive Home Loan. To learn what a balance transfer is, how it works, and the benefits associated with the facility, read on.
How Does a Home Loan Balance Transfer Work?
Here is how you should approach the process of transferring your Home Loan balance to a new lender:
- Begin by comparing the interest rates, features of both Home Loan offers, and other terms associated.
- Negotiate with your current lender for improved loan terms.
- Upon deciding on a Home Loan Balance Transfer, reach out to your current Home Loan provider for requesting a NOC or No Objection Certificate. When issued, move on to the next step of the Home Loan Balance Transfer process.
- Ensure that you submit the documents received from your current Home Loan provider to the new lender.
Once you submit all the requested documents, your new Home Loan provider will now repay the outstanding loan amount to your old lender. This closes the old Home Loan account.
This marks the end of the Home Loan Balance Transfer process.
Also Read: Key Benefits of Balance Transfer to Bajaj Housing Finance
What are the Benefits of a Home Loan Balance Transfer?
- A Home Loan Balance Transfer ensures that you enjoy attractive rates of interest on your Home Loan and this helps you save up for other purposes.
- While availing of a Home Loan Balance Transfer, you also get a chance to benefit from a sizeable Top-up Loan
- You can also negotiate a new repayment tenor with your new lender
Final Thoughts
Bajaj Housing Finance offers attractive terms on a Home Loan Balance Transfer. While each lender has a code of conduct regarding the verification of your eligibility,Bajaj Housing Finance offers a seamless and supportive Home Loan Balance Transfer process. Upon verification of your credit rating and assessment of your home loan documents and property deed, we don’t take too long to facilitate the balance transfer.
Also Read: Know the RBI Guidelines for Home Loan Balance Transfers
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