Home Loan transfer is a trend which has recently seen a surge because of the fact that the competitive interest rates let to people to opt for Home Loan Balance Transfer which are being offered by various financial institutions in the market. A lot of people make the most of this prospect because they see a scope to pay lesser interest rate and opt for the aforementioned migration. Some of the key factors for home loan transfers are as follows:
Reduced Rate of Interest
The primary reason for transferring your Home Loan from one bank to another is the rate of interest. After gauging the market trends and rates, if an individual sense that he is paying higher rate of interest as compared to others, he/she opts for the shift.
Terms & Conditions
During the tenure of the current loan, borrowers may want to change the terms and conditions that have been listed out to him/her. The borrower may want to change the loan tenure or reduce their EMI, in such cases, they migrate.
Opportunity for Enhanced Services
A lot of lenders/banks do not provide services that appear up to the mark for a certain bracket of borrowers. These are the premium customers with high loan amounts and EMIs and have expectations with respect to services from the bank. When the services of the bank failed to impress them, they change providers.
Top-Up Loan Amount
Top-ups on home loans are normally required when an individual wants to furnish his home, to repair work or buy an additional parking space. In a lot of cases, banks deny their existing customers the top-up loans. The rejection pushes borrowers to go out in search of new financers who are willing to provide a top-up loan based on the current market value of the property.
After the above factor(s) have been satisfied. A borrower then goes ahead and starts the process of migration. Before going ahead with the process the applicant must remember some important factors about the shift.
- The transfer will be of the outstanding amount of the home loan
- A processing fee will be applicable even in this scenario as the lender would treat is as a new application
- The home loan can be availed only after a pre-determined period of time as it was mentioned in the original loan document
- After the completion of transfer, the borrower owes the new lender the loan amount and the applicable charges
The application is processed after the required documents are submitted to the new lender. It is important that the borrower create a proper application file which includes all the important papers. The application process for a home loan transfer is same as applying for a new home loan, as the bank does all the necessary checks ranging from income to credit history. The new lender will also evaluate the loan repayment history with the current lender. Only after considering these aspects the loan gets sanctioned. The documents necessary for home loan shift are as follows:
- Your residence and income proof
- Your personal ID. (mention the documents)
- A letter from the existing lender mentioning the property documents that are under their custody.
- The outstanding balance letter from your existing lender.
- Copies of your property document.
- NOC if required (varies from case to case).
Before changing your current home loan keep in mind that the shift works in favour of you and not against you. Calculate the amount you will pay at the end of the tenure and evaluate if you will save any money. Once that criteria are met with and you see significant savings, then only go ahead with the transition.
Looking to transfer your home loan? Choose the Home Loan Balance Transfer facility on Finserv MARKETS and avail the various benefits. Transferring your existing home loan with Finserv MARKETS is easy, quick and completely hassle-free. What’s more? The entire process is online and comes with a host of features, benefits and attractive interest rates and if you are eligible for PMAY scheme, you can enjoy additional benefits under Pradhan Mantri Awas Yojana scheme.
“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”