Owning a home is a dream that many hold. To support this, banks and Housing Finance Companies (HFCs) offer home loans to fund your dream. You can check your home loan eligibility easily through the online mode and apply for it by adopting simple steps. Monthly instalments, interest rate, and duration to make loan repayment might vary as per the different home loan providers. You can also compute your monthly instalments with the assistance of online EMI calculators. Such calculators are generally available on the lender’s site. You can use this calculator to prepare an appropriate repayment plan as per your affordability that does not impact your monthly budget.
In case you have availed the home loan facility and want to reduce your interest and EMI burden, you have the option to opt for a home loan balance transfer. Note that to avail this option, there are various home loan balance transfer documents that you must keep handy for a hassle-free process.
Read on to know the important documents required for a home loan balance transfer:
- Consent letter
For notifying your existing home loan lender about your transfer decision, submitting a formal application form is important. In this written application, ensure to ask for the consent letter from your existing lender. The consent letter by your existing loan provider must state that they have no issue with you opting for the balance transfer option.
- NOC – no objection certificate
Post receiving the consent letter, your current lender must also issue an NOC mentioning they have no problem with the home loan transfer.
- Loan agreement
Loan agreement or sanction letter from your ongoing lender is important for the transfer option.
- Foreclosure letter
This letter announces the closure of your existing home loan with zero outstanding amount. The letter is issued once your new balance transfer lender pays your outstanding loan amount to your existing home loan lender.
- Home loan statement
This statement states your home loan specifics involving your EMI repayment history and record. Moreover, this statement reveals your outstanding home loan balance. Your current lender will provide you with this statement.
- Property documents
These listed documents should be submitted to your new home loan lender:
- Stamp duty documents
- Papers stating your property ownership
- Registration certificate
- Post dated cheques
Ask your existing lender to hand over your post-dated cheques. Remember, these cheques are submitted while availing your home loan.
Crucial KYC documents
Your new home loan lender will need these listed documents:
Identification proof
- Driving license
- Voter ID
- Employment ID card issued by NREGA
- Aadhaar
Address proof
- Driving license
- Passport
- Voter ID card
- Aadhaar
Financial documents
To authenticate your repayment capacity and income, the home loan refinance lender checks your financial documents. Such documents include:
- Latest salary slips
- Form 16
- Last six months’ bank statements
- Employment documents
Ending note
Home loan balance transfer option must only be availed if the lender is offering a lower home loan balance transfer interest rate on the facility. Besides checking the rate, also ensure to check the charges incurred for the transfer. At times, higher charges may be levied to compensate for the lower balance transfer interest rate. You can easily compute your savings on interest constituent on the transfer option by using the home loan balance transfer EMI calculator. Such calculators accurately compute your savings and appropriate EMI based on your repayment capacity. Note that availing the transfer option also allows you to avail a considerable home loan top up facility at lower rates. By using this top up loan, you can meet your personal financial mismatches.
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