Home Loan Balance Transfer is also commonly known as Home Refinancing. This service comes in handy to switch your Home Loan balance to another bank that offers you more flexible repayment options than your parent bank. The new bank could be offering attractive rates of interest, improved tenure, or better repayment facilities. Once you select a new bank to move your Home Loan, the new bank pays your parent bank the outstanding amount.
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 list of documents for home loan balance transfer. It is an extensive list of every document necessary for the end to end process of the balance transfer.
List of documents you will require from your existing lender:
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.
List of documents you need to submit to your new lender:
KYC Documents - This is for the verification purpose of your identity. You will have to present t least one document from the below mentioned list:
- Identification Proof
- Pan Card
- Aadhar Card
- Driving License
- Voter’s ID Card
- An employment ID card issued by NREGA
Address Proof - This is to verify your address details. You will have to present t least one document from the below mentioned list:
- 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
Property related documents - This is to verify the purchase of your property. You will have to present the following documents:
- Property purchase documents or documents that prove the ownership of the property
- NOC from your developer/housing society
- Registration, stamp duty payments
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.
No comments:
Post a Comment