Your Checklist for Home Loan Balance Transfer

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. 

• Consent Letter

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. 

• NOC – No Objection Certificate

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 

Loan agreement or sanction letter from the existing lender is mandatory for a home loan balance transfer

• Foreclosure Letter

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. 

• Home Loan Statement 

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. 

• Property Documents 

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. 

• Post Dated Cheques

Collect all the post-dated cheques that are pending with your current lender. These were submitted during the time of obtaining the loan. 

• KYC Documents 

These are to be submitted to the new lending bank or home loan company

• • Identification Proof
    • Pan Card
    • Aadhar Card
    • Driving License
    • Voter’s ID Card
    • An employment ID card issued by NREGA
  • Address Proof
    • Passport
    • Aadhar Card
    • Driving License
    • Voter’s ID Card
• Financial Documents

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

• Form 16 from your employer
• Latest Salary slips
• Last six months bank statements of your salary account 

• Employment Documents

These documents are needed to prove your employment. 

• An employment contract or appointment letter

• Property related documents 

This set of documents verifies the purchase of your property. You will need to submit the following documentation.

• Property purchase documents or documents to prove ownership of the property. 
• NOC from the property developer or housing society
• Registration certificate
• Stamp duty papers and payment receipt

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. 

Related Articles:

• Things to check for while applying for a loan transfer
• Home Loan Transfers: What can it do for you?
• Benefits of Home Loan Balance Transfer

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