Want to enjoy better interest rates or reduce your EMI amount? Even if you have an ongoing home loan with a bank or financial institution, you have the opportunity to transfer the outstanding home loan amount to another home loan company. The means to transfer the home loan from one lender to another is known as a home loan balance transfer.
The reason why home loan balance transfer makes sense is when the other bank or financial institution offers you a competitive lower interest rate. It results in lower EMIs (Equated Monthly Instalments), which enables you to save on the overall repayment amount. One of the foremost reasons why a home loan balance transfer is a lower rate of interest.
To carry out a balance transfer, below are the documents required for home loan transfer. It is an extensive list of every document necessary for the end to end process of the balance transfer.
You need to submit a formal written application to your prevailing lender notifying them about the home loan transfer and requesting for a letter of consent.
Your present lender is required to issue you a No Objection Certificate that states that your current lender that is the bank or financial institution has no issues transferring your home loan and the outstanding amount to the new lender.
Loan agreement or sanction letter from the existing lender is mandatory for a home loan balance transfer
This letter is an essential piece of the documents required for home loan balance transfer. It is a letter declaring that your home loan is foreclosed on the date stated and no outstanding balance amount is pending. This letter is obtained once the new lender settles the principal outstanding home loan amount with the existing lender.
This statement highlights the home loan specifics, including the EMIs repayment history and record. Additionally, the statement maintains the outstanding home loan amount. It can be collected from your present lending bank or financial institution.
From the list of documents required for home loan transfer is the set of property documents with your present lender. This entire set is needed for submission to your new lender.
Collect all the post-dated cheques that are pending with your current lender. These were submitted during the time of obtaining the loan.
These are to be submitted to the new lending bank or home loan company
These are an integral part of the home loan balance transfer documents. They verify your income source and repayment capability. The following financial documents are required for the home loan balance transfer
These documents are needed to prove your employment.
This set of documents verifies the purchase of your property. You will need to submit the following documentation.
Depending on the new lending bank or home loan institution, additional documents such as passport size photograph of the borrower, application form of the original lender for a balance transfer. The documents will vary as per the lender’s requirements.
Now that you have an extensive list of documents required for home loan transfer do make sure you check with your home loan company before you commence the loan balance transfer.
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