8 Tips to an Easy Home Loan Balance Transfer
A Home Loan balance transfer is an option that leading online lenders offer to borrowers to switch any existing Home Loan account to a new lender offering a better Home Loan interest rate.
Yes, it happens when an existing borrower opts to transfer his/her Home Loan account to another creditor.
It may happen due to multiple reasons, but the prime reason is a high-interest rate that a borrower is unable to pay any more. As a result, he/she transfers the loan account to a lender offering a better deal on the interest rate.
If you go by the benefits of a Home Loan balance transfer option, it is a good move, but the overall process could stress you out. A borrower who is willing to do a Home Loan transfer needs to play safe and move carefully.
Let’s provide you some tips that will help to make a Home Loan transfer work in your favour.
The success or the failure of a Home Loan transfer relies on multiple elements which you should consider for a home refinance.
Tip 1: Always do proper researches
When you have a Home Loan balance transfer in mind, you need to do a comprehensive research on which lender is offering what Home Loan interest rate. When you are well-versed with the market rates, you are better prepared to finalize a deal with the most suitable offer.
Tip 2: Arrange money to pay against interim security
When you do a transfer, a lender naturally wants security to keep its interests protected. Thus, some lenders may demand an interim security to transfer to them from an old creditor to the new. The payment remains refundable though; it becomes essential for you to arrange funds to pay for it.
Tip 3: Keep all your property documents in order
Once you have decided a lender with whom you would be proceeding with a home refinance option, the next thing would be getting all your property documents sorted. Get all documents such as present loan agreement, loan sanction letter, ID proofs, address proofs, stamp duty, photographs, IT returns and the property registration properly arranged. Your new lender would like to have a proper look at all before approving your request.
Tip 4: Brace yourself for details verification
It would be natural to put that once you submit all the required Home Loan documents to a lender, they will now investigate all details and may ask you for additional details if they find something irrelevant.
Tip 5: Ensure to grab all approvals
Once you are through with all the formalities of your new loan application, it is now vital to get all approval from your existing as well as the new lender. You should submit a loan transfer request to your current lender and get a No Objection Certificate about the transfer.
Tip 6: Make sure that your home documents are transferred
Once your transfer application is complete, the existing lender will transfer all papers of your property to your new lender. It becomes your duty to ensure that it happens.
Tip 7: Pay the balance figure and get a confirmation from existing lender
Pay off balance dues against the timing of your transferring the loan to the existing lender. Always get a receipt of payment from your existing lender and don’t compromise on it.
Tip 8: Don’t agree for an extended loan tenor with the new creditor
Paying a Home Loan EMIs for a longer period even at a low Home Loan interest rate mean dragging the housing loan for life. Do not opt for it and try to go for a tenor that’s not too long or short as per your affordability.
The Bottom Line
A Home Loan transfer is a beneficial step if you follow the above steps to make it work for you. Try to deploy the discussed steps and have a happy Home Loan balance transfer process!
