Home Loan Balance Transfer

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Home Loan Balance Transfer

Banks provide you with the option of a home loan balance transfer if you feel that the other bank is offering you better interest rates and other facilities. A home loan is a secured retail product. It is given against the value of property or house that you want to buy. It doesn’t matter whether the property is for personal use or for commercial use. A home loan can be availed for buying a house, constructing a new place, or renovating the old house.

home loan balance transferA home is a place where we live the moments of our life. Home is made by the people who are living under that same roof. The most important thing is buying a place and making it your home. But buying your own house is not an easy task and might become a burden on your finances. It needs a good bank balance. If you need finance to buy the house of your dreams, you can apply for a home loan. A home loan is designed to cater to all these needs. Banks and non-banking finance companies lend money for the purpose of providing loans and finances for your dream home.

A home loan is a detailed process. It takes from 5 to 7 days to get the loan amount. One can get a home loan for a maximum of 25 years. Availing a home would mean a long relationship with the bank. So, one should always choose the best bank before going for a loan.

Be online and compare all offers across the leading banks of India through Dialabank. Get the lowest interest rates for your home loan today by applying online or giving a call at 60011600 or 98789-81166.

How does the entire process of Home Loan Balance Transfer take place?

A balance transfer happens when you transfer all your outstanding loan amount from one lender to another. This becomes necessary when the other lender is offering you better interest rates and other facilities. There are some things that you should consider before a home loan balance transfer:

  • Research: Compare all the aspects of the loans offered by your original lender as well as the lender to whom you want to transfer your balance, to make sure that you will actually get some financial benefits and not losses.
  • Make a quick move: Make sure that you transfer your balance in the initial years of our loan repayment because that’s when you have to pay higher EMIs. If you opt for a balance transfer in the later years, it will actually cost you a lot more.
  • Don’t be short-sighted: Don’t go for a balance transfer only because the other lender is offering you a welcome gift. They might later add some charges or conditions which harm your repayment stability.
  • Calculate: Know all the charges such as the processing fee beforehand so that you know explicitly what you will have to pay and if the balance transfer will actually be beneficial for you or not.
  • Don’t compromise: Only choose the bank which offers the best services on affordable charges.
  • Make sure that the lender you desire to transfer your loan amount to is trustworthy and reliable. Check the records of the lender and only then satisfy yourself. This will save you from unnecessary fraud.
  • Check the Marginal Cost of Funds Based Lending Rate (MCLR) of the new lender.
  • Make sure you have the required documentation and eligibility for a balance transfer.
  • In case your building is already under construction, get fresh permission to mortgage (PTM) from the builder, and provide it to the new lender.

Home Loan Balance Transfer Benefits

  1. Reduce interest rates
  2. Reduce EMIs
  3. Avail of extra offers and discounts by the other lender
  4. Top-up your loan at the same interest rate as the original home loan amount rate.

Home Loan Balance Transfer Interest Rate

Bank Name Home Loan Transfer Rates Loan Transfer Processing Fees Lowest EMI per lakh
SBI Home Loan Transfer 6.95% 0.20%
Min Rs. 4,000 – Max Rs. 17,400
Rs. 662 and for 30 Years
HDFC Home Loan Transfer 6.95% Min Rs. 10,000 Rs. 662 for 30 Years
Citibank Home Loan Transfer 6.95% Nil Rs. nan for 25 Years
Bank of Baroda 6.85% Min Rs. 10,030 Rs. 655 for 30 Years
Private Bank 8.45% 0.25% Rs. 765 for 30 Years
Axis Bank 7.70% Max Rs. 10,000 Rs. 713 for 30 Years
PNB Housing Finance 8.60% 1.00% Rs. 776 for 30 Years
LIC Housing Finance 7.50% 0.25% Rs. 699 for 30 Years
Indiabulls 9.25% Min Rs. 7,500 – Max Rs. 10,000 Rs. 856 for 25 Years
DBS Bank 7.70% Max Rs. 10,000 Rs. 818 for 20 Years
DHFL 9.50% 0.50%
Min Rs. 2,500 – Max Rs. 20,000
Rs. 841 for 30 Years
Kotak Bank 8.60% Max Rs. 10,000 Rs. 874 for 20 Years
Canara Bank 8.05% 0.50%
Min Rs. 1,500 – Max Rs. 10,000
Rs. 737 for 30 Years
DCB Bank 10.24% 2.00%
Min Rs. 5,000
Rs. 981 for 20 Years
Federal Bank 8.35% 0.50%
Min Rs. 3,000 – Max Rs. 7,500
Rs. 758 for 30 Years
Indian Bank 7.55% 0.23%
Max Rs. 20,381
Rs. 809 for 20 Years
Karur Vysya Bank 8.20% Min Rs. 5,000 Rs. 785 for 25 Years
OBC 8.00% 0.50%
Max Rs. 20,000
Rs. 772 for 25 Years
South Indian Bank 8.05% 1.00%
Max Rs. 10,000
Rs. 737 for 30 Years
Yes Bank 9.85% 2.00%
Max Rs. 15,000
Rs. 898 for 25 Years
IDFC First Bank 9.50% Min Rs. 5,000 – Max Rs. 5,000 Rs. 841 for 30 Years
Bajaj Finserv 8.45% 0.50% Rs. 865 for 20 Years
Standard Chartered Bank 9.40% 1.00%
Min Rs. 5,000 – Max Rs. 10,000
Rs. 926 for 20 Years
Central Bank of India 7.25% 0.50%
Max Rs. 20,000
Rs. 682 for 30 Years
Dhan Laxmi Bank 8.85% 1.00%
Min Rs. 10,000
Rs. 890 for 20 Years
GIC Housing Finance 10.25% Min Rs. 2,500 Rs. 982 for 20 Years
Indian Overseas Bank 7.45% 0.53%
Min Rs. 8,900 – Max Rs. 13,350
Rs. 696 for 30 Years
Punjab and Sind Bank 8.05% 0.25%
Min Rs. 1,000 – Max Rs. 15,000
Rs. 737 for 30 Years
UCO Bank 6.90% 0.50%
Min Rs. 1,500 – Max Rs. 15,000
Rs. 659 for 30 Years
Piramal Housing Finance 9.00% 0.10% Rs. 805 for 30 Years
Corporation Bank 8.35% 0.50%
Max Rs. 50,000
Rs. 758 for 30 Years
HSBC Bank 8.65% 1.00%
Max Rs. 10,000
Rs. 815 for 25 Years
Jammu And Kashmir Bank 7.70% 0.25%
Min Rs. 500 – Max Rs. 10,000
Rs. 938 for 15 Years
Lakshmi Vilas Bank 9.70% 0.40%
Min Rs. 10,000 – Max Rs. 20,000
Rs. 945 for 20 Years
RBL Bank 10.45% Min Rs. 5,000 – Max Rs. 15,000 Rs. 941 for 25 Years
LT Housing Finance 9.90% 2.00%
Min Rs. 4,999
Rs. 870 for 30 Years
Tata Capital 9.05% 0.50% Rs. 808 for 30 Years
Bank of Maharashtra 8.20% 0.50% Rs. 748 for 30 Years
Edelweiss 10.50% 0.25% Rs. 944 for 25 Years
IDBI Bank 8.25% 0.50%
Min Rs. 2,500
Rs. 751 for 30 Years
Karnataka Bank 8.55% 0.25%
Min Rs. 250
Rs. 772 for 30 Years
Reliance Capital 10.00% 1.00%
Min Rs. 3,000 – Max Rs. 6,500
Rs. 878 for 30 Years

Note: If you are paying significantly more than Rs 665 as EMIs per lakh of your loan amount then you should definitely opt for a loan transfer. 

Process of Home Loan Balance Transfer

For a balance transfer, first, calculate your interest savings in the current bank. If you feel like you are paying too much as EMIs, shortlist the bank where you would want your loan to be transferred.

Decide if you want a loan top up and obtain the property papers from your existing lender. Provide the new lender with a photocopy of these papers, the other documents, and necessary changes.

After you fill up all the forms, obtain the sanction as well as the disbursal letter and then you are good to go.

How do I avail the best home loan transfer offer?

  • Examine the latest lender’s interest rate history.

You can double-check that the new lender’s advertised lower interest rate is genuine and not a one-time offer. Please inquire about the latest lender’s benchmark rate track record with your loan advisor.

  • Convince yourself of the new lender’s service standard.

Check to see if the new bank’s service level meets your needs. Low rates should not be at the expense of poor service.

  • Look into the benchmark pace.

For home loans, there are two widely used benchmark rates: the MCLR rate for banks and the prime lending rate (PLR) for housing finance firms. MCLR-benchmarked loans are considered to be more straightforward than PLR-benchmarked loans and hence are preferred.

  • Is the spread adjustable or set?

The benchmark rate and the gap above it make up the interest rate on floating-rate loans. The spread is supposed to remain constant except in the event of a default, while the benchmark rate is expected to adjust over time. Some banks, on the other hand, sell floating rate loans with variable benchmarks and spreads. Borrowers’ loan interest rates increase dramatically after a few months in the case of many of these loans. As a result, avoid loans with variable spreads and instead choose fixed-rate loans with interest rates that fluctuate only in response to changes in the benchmark rate.

  • Calculate the transaction costs.

Examine the costs associated with making the move. Collection fees, stamp duty (in some states, such as Maharashtra), and paperwork fees are among them.

  • Notify the current bank.

Some banks need advance notice before allowing you to prepay your mortgage. Examine your loan agreement carefully to ensure that your current bank has been granted or waived due notice.

How do I transfer my home loan for an under-construction property?

The method of transferring a home loan on a property that is still under construction is close to that of a ready-to-move property. However, if you are purchasing a property that is still under construction, you must consider a few additional factors.

  1. Examine your loan eligibility in light of the new bank.
    Land costs are divided into many categories, including the base price, preferred location charge (PLC), external development charges, internal development charges, protection deposit, electrification charges, power backup charges, service tax, and fire fighting charges, among others. Norms for each cost head’s inclusion vary by lender. If the new bank may not provide any of the expense of property heads that the old bank did, your loan eligibility will be reduced, and you will need to increase your own contribution.
  2. Choose the best time to pass your loan.
    From the date of application, the loan transfer process can take 10-15 days, and your current bank can take another 10-20 days to hand over property documents to the new bank. During this time, you will not be eligible to receive any further loan payments.
  3. Obtain a new Mortgage Permission and a Tri-Partite Arrangement.
    A builder would need to give the new bank new permission to mortgage (PTM) and enter into new permission to the mortgage agreement. This usually takes 2-5 days, but borrowers should consult with the contractor first.

Home Loan Balance Transfer Documents Required

For a salaried individual:

  • Loan statement and photocopies of property documents with the existing lender
  • Bank statements of EMIs paid for the last 12 months.
  • Application form signed by borrowers and guarantors
  • Identity proof, residential address proof, age proof, office address proof of borrowers and guarantors
  • Last 3 years’ Form 16
  • Bank account statements of salary for the last 6 months.

For a self-employed individual:

  • Loan statement and photocopies of property documents with the existing lender
  • Bank statements of EMIs paid for the last 12 months.
  • Application form signed by borrowers and guarantors
  • Identity proof, residential address proof, age proof, office address proof of borrowers and guarantors
  • Ownership/lease/rent agreement of the office building
  • Business profile
  • Last 3 years ITR
  • Certificate and Proof of business existence

Home Loan Balance Transfer Eligibility Criteria

The only eligibility criteria for a home loan balance transfer is that the applicant should be:

  • An Indian national
  • Between 23 to 65 years of age
  • A salaried or a self – employed individual

Home Loan Balance Transfer Charges 

For a balance transfer, you have to pay a number of charges such as:

  1. The foreclosure fee is charged by your existing lender. However, it can only be charged on the fixed interest rates and not the floating rates.
  2.  The processing fee is paid to the new lender for processing the transfer of your outstanding loan amount and ranges up to 4% of the loan amount.

Home Loan Balance Transfer Calculator

Dialabank brings to you a home loan balance transfer calculator to help you compare the rates of your existing lender to the rates offered by other lenders in the market. This helps you to choose which bank you should transfer your outstanding loan balance to without any hassle or time wastage. It helps you calculate how much you will have to pay including the transfer and the processing charges.

Thus, a balance transfer calculator is important to know if a balance transfer is beneficial for you or not.

Key Features of Home Loan Balance Transfer

Home Loan Balance Transfer is used for the transfer of Home Loans. This Home Loan transfer facility is used in every bank and almost in every lender. If you get a better deal of low-interest rates then you can shift your loan and this is known as Home Loan Balance Transfer. But Home Loan Balance Transfer is useful when your loan amount is higher and your repayment tenure is higher. 

These reduced costs also play an important role in these Home Loan Balance Transfer. There are some costs related to these Home Loan Balance Transfer. There are also many benefits from these Home Loan Balance Transfer and some of them are Lower Interest rates, Prepayment facility, Top-up loans and many other facilities you can avail in these Home Loans Balance Transfer.

Reasons to apply for a Home Loan Balance Transfer

There are many benefits to avail Home Loan Balance Transfer and these benefits are some of the reasons for availing Home Loan Balance Transfer. The first reason for availing of Home Loan Balance Transfer is low-interest rates. You can avail of low-interest rates rather than the previous loans. With these lower interest rates, you can avail yourself of low amounts for repayment.

The next reason for availing of the Home Loan Balance Transfer is the prepayment facility. You can avail prepayment facility. By using these prepayment facilities there are many uses. There are top-up loans available in the Home Loan Balance Transfer. By using these top-up loans you can repay your debts just as a personal loan. These are some of the reasons for availing of Home Loan Balance Transfer.

Top Banks Offering Home Loan Transfer

Some of the top banks offering Home Loan Transfer are:

  • State Bank of India
  • HDFC Bank
  • Axis Bank
  • Kotak Mahindra Bank
  • Bank of Baroda
  • UCO bank
  • IDFC First Bank
  • Standard Chartered Bank

Dialabank is here to help the Best Home Loan Balance Transfer

As in Home Loan Balance Transfer, you need to find out the best loan which has low interest rates. Dialabank helps you in finding the best Home Loan Balance Transfer for you. Dialabank helps you in finding the loans which have low-interest rates, Prepayment facility, Top-up loans and various other benefits. By knowing all these benefits you can find the best Home Loan Balance Transfer. So Dialabank is a bridge between the customers and the Home Loan Balance Transfer. So use Dialabank for Best Home Loan Balance Transfer.

FAQs About Home Loan Balance Transfer 

✅What is a home loan balance transfer and how is it beneficial?

A home loan balance transfer occurs when the borrower transfers all of his outstanding loan amounts from one lender to another. It is beneficial as it helps the borrower reduce the payable EMIs by shifting their loan to a lender which charges lower rates and offers other facilities.

✅Is there an eligibility criterion for a home loan balance transfer?

The only eligibility criteria are that the borrower should be an Indian National between the ages of 23 to 65. He/she can be either salaried or self – employed.

✅Is a guarantor necessary for home loan transfer?

No, as long as the borrower is in the capacity to repay the EMIs on time, he/she is good to go.

✅Can I top-up my loan after transfer?

Yes, most banks provide the borrowers with the option of a top-up equal to 75% of the market value of the property after the loan transfer.

✅How much time does a home loan balance transfer usually take?

A home loan transfer normally takes only 15 to 20 days.

✅Should I go for a loan transfer in the last few years of my loan tenure?

No. This is because you pay higher EMIs in the initial years and lower EMIs after, so transferring your loan amount in the last few years will actually cause you a financial loss. Also, if you are planning to sell off your property in the future, a transfer is not a good option for you.

✅Can I possibly merge the existing loans through a transfer?

Yes, you can merge two or more existing loans into one through a transfer.