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  • Want to Transfer Home Loan – Process Explained in Details

    Published on April 25, 2019

    The home loan balance transfer is a unique facility that lets you switch your current home loan account from one lender to another. It is done to enjoy the lowest interest rate at a reasonable price.

    The biggest advantage of going for it is being able to save on current EMI payments and managing monthly expenses easily. It also lets you enjoy a top up loan of up to Rs.50 lakh at a lower rate and a longer tenor. You can use the amount at a lower rate than a personal loan to cover your multiple needs.

    If you are also dealing with higher loan interest rates, and willing to enjoy a lower rate, you can also apply for the home loan balance transfer.

    If you wish to know the fees associated with it, you can also use the online home loan balance transfer calculator. It is available on a leading lender’s website free of cost.

    Here are some steps that you can take if you are all set to apply for a home loan balance transfer facility.

     

     

    Quick Steps to Apply for a Home Loan Balance Transfer

    Step 1 – Inform your Current Lender

    The primary step in this direction will be intimating the existing lender that you want to switch your housing loan account. You may need to provide the lender with a genuine reason for doing so.

    Step 2 – Go Negotiating

    Your current lender may negotiate and offer you the lowest housing loan interest rate to retain you. If you are done with your cost analysis of the new lender, you may know the exact amount you will save while opting for the balance transfer. If your current lender can’t match the offer, then it’s good to move on.

    Step 3 – Request a NOC

    You would be required to submit an application to your current lender. Ask for a ‘No Objection Certificate’ from the existing lender for a smooth transfer.

    Step 4 – Procure Extra Documents

    You may need some extra documents from your lender such as a consent letter, a foreclosure letter, your property documents, and housing loan statement showcasing the EMIs payment.

    Step 5 – PDC Cheque Cancellation and Payment of Charges

    Ensure that you have taken back or cancelled all post-dated cheques earlier provided to your lender. You may also need to pay extra charges, if any, for closing the home loan account before time.

    Step 6 – Pay off the Existing Loan   

    After you apply for a balance transfer with a new lender and get an approval, the lender will pay off the remaining amount to the current lender.

    Step 7 – Sign the Loan Agreement

    After your existing loan gets paid off, you can now sign a new house loan agreement with your new lender.

    Step 8 – Enjoy the Lowest Home Loan Interest Rate with a New Loan

    That’s it! You are now eligible to save money by paying the lowest home loan interest rate by subscribing to the home loan balance transfer facility.

    If you are all set to apply for a home loan balance transfer and wish to save money by paying a lower EMI, you can apply for it online and get started.

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