The process of home loan balance transfer starts with interest saving calculation. You can use a balance transfer calculator for this purpose. After that, you can perform market research to select a financial institution that offers the most competitive rate of interest and then start an application process.
Here is a step-by-step guide for this purpose –
Step 1: Approach a new lender of choice for home loan refinance and initiate such a process.
Step 2: Get in touch with your current lender to get a NOC and start the transfer of property papers.
Step 3: Complete the application process and other formalities with the new lender, finalise the loan terms.
Step 4: Foreclose the loan with your current lender, and complete the remaining formalities.
Step 5: Start further repayment with your new lender.
The availability of online processes has made this process simple; however, keeping the required documents handy can further expedite this process. Here is a list –
NOC from the previous lender.
Certificate of foreclosure.
Previous home loan repayment statement.
Property documents.
KYC details.
Income proof.
Bank account statement.
Home loan balance transfer allows individuals to opt for a loan to save substantially on repayment. Typically, the idea behind opting for this facility is to shift to a lower rate of interest. Along with that, better loan repayment options, top-up loan are some of the notable highlights of this process. However, you should time this transfer properly to make the most of its benefits.
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