If you are repaying a home loan that has a high interest rate and have found a lender offering a lower rate, you can opt for a home loan balance transfer. This transfer involves shifting your outstanding loan amount from one lender to another for better terms, such as a lower home loan balance transfer interest rate. The purpose of refinancing a home loan is to get a better repayment plan and save money on the overall cost of the loan.
Now, before going for a home loan refinance, there are a few things that you need to be ready with, such as the documentation process. No one likes to struggle with numerous documents going back and forth, which is why it is better to be ready with all the required ones.
So, take a look at a list of the documents required for home loan balance transfer:
- NOC (No Objection Certificate)
In order for the home loan balance transfer to take place, the existing lender will have to first issue an NOC that states that they have no objections to you transferring the loan to the new lender.
- Home Loan Statement
A home loan statement has all the specifics of your loan plan that states the payment record of the home loan’s monthly instalments. This statement is very important as it also includes the outstanding loan amount that needs to be cleared.
- Post-dated Cheques
At the time of giving the current home loan, the lender would have required you to submit post-dated cheques. You will need to submit these cheques to the new lender to get a loan transferred to them.
- Address documents
The following documents will be needed for the verification of your address:
- Driving license
- PAN card
- Passport
- Aadhaar card
- Voter ID
- Property documents
Lenders require the following property documents for verification purposes:
- Stamp duty documents along with the payment receipt
- NOC from the developer or housing society
- Registration certificate
- Papers to prove you are the owner of the property
- Financial documents
Before the lender approves the home loan balance transfer, the new lender will require the following financial documents:
- Form 16
- Latest salary slips
- Bank statements (past 6 months)
- KYC documents
Keep the following KYC documents ready to submit to the new lender:
- Voter ID
- PAN card
- Aadhaar card
- Driving license
- Foreclosure letter
A foreclosure letter is proof that the home loan has been foreclosed on a particular date with no outstanding amount left to be repaid. This letter will be given to you after the existing lender receives the payment for the loan amount in full.
- Consent letter
You will have to submit a formal application to your current lender telling them about your decision to go for a home loan balance transfer, and then request for a consent letter.
Keep in mind that this is only a general list of home loan balance transfer documents. So, make sure to check with your lender regarding their exact requirements before going ahead.
