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Posted over 6 years ago

What are the Documents Required for a Home Loan Balance Transfer?

An own home is no more a dream! It has become a possibility these days because of the affordable Home Loans available from various lenders.

If you have plans to have your own home, you can apply for a Housing Loan which lenders can sanction as per your income, eligibility, Home Loan documents and more.

What is a Home Loan Balance Transfer?

Housing Loan borrowers who have taken loan already from a lender can transfer their Home Loan to a new lender when they see an attractive interest rate on offer.

Today’s market is volatile, and Home Loan interest rates keep changing and the beneficiary of it is no one but a borrower who can do a Home Loan Balance Transfer.

While doing so, your existing creditor may ask for a penalty and your new lender may ask for a processing fee. What you can do is negotiate a waiver with both lenders for the balance transfer charges.

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If you are ready with your decision to change your Home Loan creditor, you will need some vital documents to furnish. Have a look.

Documents for a Home Loan Balance Transfer

  • Copy of property documents
  • Outstanding loan amount details
  • Foreclosure letter

Documents for Home Loan for Salaried Borrowers

  • Employment certificate
  • Salary slip copies
  • TDS certificate
  • Form 16
  • Bank statements

Home Loan Documents for Self Employed Individuals

  • Copies of the audited financial statements of last few years
  • Partnership deed copies if the business in co-owned
  • Memorandum of Association (MOA) and Articles of Association (AOA) copies
  • Profit and loss statements for the last few years
  • Income tax assessment details

Home Loan Balance Transfer Eligibility Criterion

Shortage of lenders providing you a Home Loan balance transfer will never be an issue. But, like their competitive rates, their eligibility criterion will also differ.

Here are some most common of all Home Loan balance transfer criterion that a borrower must match at all costs.

  • Borrower must be an Indian national
  • Age must be between 28-70 years bracket
  • A salaried individual drawing a stable monthly salary or a self-employed with a 5-year-old establishment history
  • Employment details denoting a steady income and a possibility to earn more in the future
  • A solid credit or CIBIL score – 750 or more is a healthy credit score to vouch for

Balance Transfer Calculator

After you have an idea about the required documents for a Home Loan, you can go ahead and calculate the EMI amount when you opt for a Home Loan balance transfer. You need to fill in details such as:

  • Bank name with which you have an existing Home Loan
  • Total sanctioned loan amount
  • Existing Home Loan interest rates
  • Starting month and year of the loan
  • Loan tenure
  • Property location

Once you provide these details, you will know the saved amount for the loan tenure, top-up loan eligibility, and the final loan amount that you get avail after the Home Loan balance transfer.

The Bottom Line

You must opt for a Home Loan balance transfer scheme because as a borrower you get the advantage of availing the most attractive interest rates to lower your EMIs and also get a chance to balance the monthly cash flows smoothly.

Now you are well aware of the Home Loan documents along with the eligibility criterion, Home Loan balance transfer calculator and much more. What should you do? You should go for a lender providing you with the lowest balance transfer rates.

Also, make it a point to negotiate the penalty and processing fee waiver with your existing and the new lender so that you don’t have to suffer a loss. Many times, it may occur that a processing fee and penalty are too much than what you are saving on doing the Home Loan balance transfer.

Thus, it would be better to strike a waiver deal first before opting for the Home Loan balance transfer.



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