Home Loan Transfer is the facility available in the market for individuals to experience the benefit of lower interest rates prevailing in the market. Generally, a customer in the Home Loan tenure of 2-3 years cannot share the use of this loan transfer.
People looking for the best interest rates can negotiate with the bank offering the loan. If your banks do not agree to do so, you can shift your loan to another bank that offers the lowest interest rate.
What is the Process to Transfer Your Home Loan?
Issuing NOC Letter: You will have to submit a letter to the current lender requesting the Home Loan Transfer. O the basis of your request, the bank will issue a consent letter or NOC along with a statement mentioning the outstanding amount.
This NOC is then provided to the new lender, who will sanction your loan amount to the existing lender for the account closure. Once this transaction is over, your property or home documents are handed over to the new bank.
Current Home Loan rates: The new lender will sanction your loan amount based on existing Home Loan Rates they offer to their existing loan applicants.
Processing Fee to Transfer Your Home Loan:
If you are opting for Home Loan Transfer, you will have to pay a processing fee to the new lender. This fee ranges between 0.5 % and 1 % of the loan applied.
If you are willing for a balance transfer after paying an enormous Loan amount, it is not a wise decision as you will have to shell more then you have paid before.
Procedures to Transfer Your Home Loan:
If you are considering switching home loans, you will have to go through procedures. These include verification of the property, credit appraisal, and technical evaluation with the new lender. If anyone of the above conditions is met, the loan will be approved immediately.
Things to watch out for:
- It is better to switch the loan earlier as you have already paid out an adequate sum to the bank.
- It would help if you got statements from the existing lender.
- If you had been irregular for your Home Loan payments earlier, you would not be eligible for any loan transfer.
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