Keep These Important Documents Ready for a Seamless Home Loan Balance Transfer Process!

Why stick to the existing home loan with a high interest rate when there is a better loan plan out there? Home loan interest rates have been on a constant downfall, and if you have taken a home loan a while back with the interest rate being higher, it might be time to consider a home loan transfer. Getting a better home loan balance transfer interest rate can help in making significant savings to the total cost of the loan. Not just this, you can also have other benefits like a more suitable repayment tenure and top-up loan.

Now, there are certain documents required for home loan balance transfer. To make sure the home loan transfer is a smooth one, keep the following documents with you:

  • Consent Letter

This is a formal written application to the current lender to notify them regarding the home loan balance transfer and to request for a letter of consent.

  • No Objection Certificate (NOC)

The current lender will have to issue a No Objection Certificate stating that it has no issues in transferring the home loan to a new financial institution.

  • Foreclosure Letter

A foreclosure letter states that the home loan is foreclosed on the stated date without any outstanding amount left to be cleared. You will receive this letter once the outstanding amount with the existing lender is cleared.

  • Home Loan Statement

A home loan statement includes the home loan specifics, which includes the repayment record of the monthly instalments. In addition, this statement will include the outstanding home loan amount, which is yet to be cleared.

  • Property Documents

The current lender will have all the property-related documents which you need to collect and give to the new lender.

  • Post-dated Cheques

While applying for a home loan, you will have submitted post-dated cheques to your current lender at the time of getting the loan. These cheques are required to be given to the new lender.

  • KYC Documents

KYC documents are required for the verification of your identity. These documents include:

  • Driving license
  • Voter’s ID
  • Aadhaar card
  • PAN card
  • Employment ID issued by NREGA
  • Address documents

These documents are to verify your address details. These documents include:

  • Aadhaar card
  • Driving license
  • Passport
  • Voter’s ID
  • Financial documents

The new lender will require your financial documents for the home loan transfer to go through. These documents help the lender verify repayment capability and income source. They include:

  • Latest salary slips
  • Form 16
  • Bank statements of the last 6 months
  • Property documents

These documents are required to verify the purchase of the house. They include:

  • NOC from the housing society/developer
  • Papers proving ownership of the property
  • Stamp duty documents and payment receipt
  • Registration certificate

Now that you have all the information on documents that you need for the home loan balance transfer, go ahead and apply for one. Before doing so, remember to make use of a home loan balance transfer EMI calculator to understand the repayment plan.