Overview
Home Loan Balance Transfer helps you reduce your EMIs by moving your outstanding loan from other financial institutes to the one which offers lower interest rate.
Home Loan Balance Transfer or Refinancing or simply Balance Transfer is the process that allows you to benefit from the lower interest rate offered by the other lender. If you have an existing outstanding home loan with one borrower, you can make a home loan transfer, that is, shift the remainder amount to a different borrower who charges a lower rate of interest, the process is termed as a home loan balance transfer or refinancing. This unique home loan transfer service helps a customer avoid high applicable interest rates as listed by one home loan lender and migrate to a lower interest rate structure with another lender.
So why one would need a balance transfer? A home loan involves a significantly large amount of money and therefore, the interest rate on the loan is a matter of concern for everyone who decides to take a home loan. Home loan interest rates may be high so one of the most common ways to reduce interest rates is to either talk to the bank that has provided you with the loan to reduce it or go for a transfer of the balance on an existing home loan or in layman terms, shift your home loan to a bank offering lesser rate.
Frequently Asked Questions
What are the benefits of a home loan balance transfer?
The main benefits of a home loan balance transfer are lower interest rates, the option to change the loan tenure, and potentially lower EMIs.
Why should I apply Home Loan Balance Transfer with Findryl instead of with a Banker directly?
In short, you'll save time and probably a lot of money! It's important to compare different options instead of going with the first one you find. If you apply with one banker and get rejected, you'll have to restart the process with another lender. Findryl simplifies this process with a single, unified way that connects you to the best loan offers.
How much can I save with a home loan balance transfer?
The amount you can save with a home loan balance transfer depends on the difference between your current interest rate and the new interest rate. It's important to do the math and calculate how much you can save before deciding to transfer your home loan.
How do I know if I'm eligible for a home loan balance transfer?
To be eligible for a home loan balance transfer, you need to have a good credit score and a steady income. The new lender will evaluate your creditworthiness before approving your balance transfer application.
Documents Required for Home Loan Balance Transfer?
Home loan application forms usually have a checklist of documents that applicants need to submit to their lenders. These documents are usually the same for all lenders; however, a few specific requirements may vary depending on the chosen loan scheme, purpose of the loan and individual credit profile.
Some of the common documents required for getting a home loan are:
- Duly filled in and signed home loan application form
- Passport size photographs, as required
- Proof of Identity: Copy of any one (PAN Card, Passport, Aadhaar Card, Voter’s ID Card and Driving License)
- Proof of Age: Copy of any one (Aadhaar Card, PAN Card, Passport, Birth Certificate, 10th Class Mark-sheet, Bank Passbook and Driving License)
- Proof of Residence: Copy of any one (Bank Passbook, Voter’s ID, Ration Card. Passport, Utility Bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill) and LIC Policy Receipt
- Proof of Income for Salaried: Copy of Form 16, latest payslips, IT returns (ITR) of past 3 years and investment proofs (if any)
- Proof of Income for Self Employed: Details of ITR of past 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm, Business License Details and Proof of Business Address
- Property-related Documents: NOC from Society/Builder, detailed estimate of the cost of construction of the house, registered sale deed, allotment letter and an approved copy of the building plan
Note: The above list is indicative and your lender might ask for additional documents.
How long does it take to process a home loan balance transfer?
Home loan balance transfers can take anywhere from a few days to a few weeks, depending on the lender and the complexity of the transaction.
What happens to my old home loan after I transfer it?
Once you transfer your home loan, your old loan will be closed, and you'll have to repay any outstanding balance to the old lender.
How do I apply Home Loan Balance Transfer through Findryl?
It's simple, just fill the above form or hit the whatsapp button on the bottom right on your screen. We'll manage everything for you, and there's no fee involved.