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Your Handy Checklist for Home Loan Balance Transfer

There are a myriad of documents that you must have on you compulsorily before availing a Home Loan Balance Transfer facility which is provided by several banking institutions. The whole purpose of availing a Home Loan Balance Transfer facility is to essentially make the burden of interest payment which is felt by the borrower a little less. Hence, it is always advisable to screen your decision of availing a Home Loan Balance Transfer (BT) service ahead of taking the plunge that may cost you several thousands of rupees to do so to boot.

By making use of a Home Loan Balance Transfer facility, you can reduce some of the interest burden from your shoulders. Additionally, you can even avail several exciting benefits through Finserv MARKETS, such as the likes of flexible loan repayment options, extensive loan repayment tenures and competitive interest rates, amongst many others. At Finserv MARKETS, we pride ourselves on providing quality assistance to those who use the portal.

But, before we go over the checklist of documents that you must refer to ahead of making use of a Home Loan Balance Transfer facility, it would be prudent to take a closer look at the very concept of the Home Loan Balance Transfer (BT) facility. You will find an overview of what exactly a Home Loan Balance Transfer facility is below. In addition to the same, you will also learn how making use of Bajaj Housing Finance’s Home Loan Balance Transfer facility can be a lucrative endeavour. Read on to know more.

What is a Home Loan Balance Transfer Facility

As suggested by the name itself, a Home Loan Balance Transfer (BT) Facility basically enables a borrower to transfer their current loan obligations from one lender to another. Typically, a borrower home opts for a Home Loan Balance Transfer facility when some other lender is offering a better rate of interest to them on the very same loan he/she is currently honouring the terms of with their bank.

Additionally, sometimes documents detailing the Home Loan repayment terms also state that the lending institution will levy a penalty charge upon the borrower should they choose to pay off their entire loan amount ahead of the completion of the repayment tenure. Some other lending institutions, on the other hand, tend to not charge a single penny as any form of a penalty on Balance Transfer. The same can also be a driving factor for many to have their Home Loan repayment obligations transferred to a financial institution other than the ones they are currently honouring it with and take advantage of the services that are given to the borrower of one of their Balance Transfer Loans.

Now that your memory of what a Home Loan Balance Transfer facility is has been refreshed, let’s look into the several documents that a borrower must compulsorily have on their person before finally making a switch to what they consider to be the borrower that might just be perfect for them. What you will find below is an actual checklist of things you must keep in the back of your mind while considering the same. Read on to know more.

Checklist of Documents for Initiating the Home Loan Balance Transfer Process

  • Consent Letter:- You will be required to submit a formally- written application letter to your point of contact working in the bank from which you have taken a Home Loan, letting them know that you are considering a Home Loan transfer and you need a letter of consent from their end.

  • NOC – No Objection Certificate:- Secondly, your present lender needs to issue a No Objection Certificate in your name. The same should say that your current lender consents to transferring your outstanding Home Loan balance to the new lender.

  • Loan Agreement:- Loan agreement, which is also known as a sanction letter, is a mandatory piece of document for you to have if you want the Home Loan balance transfer process to go through.

  • Foreclosure Letter:- As suggested by the name itself, it is a letter saying that your Home Loan has been foreclosed on a date stated on the document and no outstanding amount is pending with your current lender. It is issued once the new lender pays off the principal outstanding Home Loan amount to the existing lender.

  • Home Loan Statement:- This essentially brings to forefront the Home Loan specifics, complete with EMI repayment history and past record. It also highlights the outstanding Home Loan amount.

  • Property Documents: Every piece of paper pertaining to the house that you took a Home Loan for will be needed if you want to turn the same into one of the Balance Transfer loans of one of our lending partners.

In addition to the above, you will need all of the below listed credentials which either pertain to your identity or your humble abode. Read on to know more.

To make sure that your Home Loan Balance Transfer (BT) process is a success, you will need the following documents:

  • KYC Documents

  • Identification Proof

  • Pan Card

  • Aadhaar Card

  • Driving License

  • Voter’s ID Card

  • An employment ID card issued by NREGA

  • Passport

  • Financial Documents

Additionally, there are a few documents that your employer will have to furnish for your Home Loan Balance Transfer (BT) process to go smoothly. They will be needed for the purpose of verification of your income and employment status. You will find a list of the same below.

  • Form 16 from your employer

  • Latest Salary slips

  • Last six months bank statements of your salary account

  • Employment Documents

On top of that, the following list of credentials will also need to be submitted so that you can prove the authenticity of your employment status.

  • An employment contract or appointment letter

  • Property related documents

This set of documents verifies the purchase of your property. You will need to submit the following documentation.

  • Property purchase documents or documents to prove ownership of the property.

  • NOC from the property developer or housing society

  • Registration certificate

  • Stamp duty papers and payment receipt

Conclusion

Depending on the new lending bank or Home Loan institution, additional documents such as passport size photograph of the borrower, application form of the original lender for a balance transfer may be needed. The documents will vary as per the lender’s requirements. You can also compare different Home Loan Balance Transfer Interest Rates here to know more about how to convert your current Home Loan obligations into one of the balance transfer loans of our lending partners, you can educate yourself further on Finserv MARKETS.