When it comes to buying a house, a home loan is generally the first thing which will come to anyone’s mind. While taking a home loan for buying your dream house is nowhere a bad option and it helps to make your dreams into reality, sometimes, this may create trouble in the long run.

It might happen that you find it difficult to repay the loan, the interest rate might be higher than usual or you may want to transfer the home loan. While it is advisable to check properly all the terms and conditions and other documentation processes carefully before registering a home loan, in case you want to transfer the home loan, there is an easy process.

Sometimes, you may find that the existing home loan has a greater interest rate and you may want to switch to a different option which may be relatively beneficial. In this case, you can transfer your home loan to a different lender provided, you follow the right procedure.

You can transfer your home loan to the new lender offering a better service. The process of switching the home loan to a different lender is known as the home loan transfer. First of all, it is important to know why to transfer the home loan.

Why transfer home loans?

You may be able to repay the loan in a shorter span of time as you get a lesser burden.
One of the prime reasons why people consider transferring the home loan is that the new lender may offer additional benefits which may include perks like easy prepayment and foreclosure at zero additional charges. Hence, it will result in enhanced ease of repayment.

You may experience a better customer service hence a better experience resulting in relieve of much stress.
You may also get various additional benefits from your new lender which may include perks like a top-up loan which can be used to furnish or revamp or personalise your home or any other purposes.

The interest rate on your home loan may reduce after transferring your home loan. Either your EMI will reduce while tenure remaining the same, or the EMI will remain the same and the tenure will become shorter. Either way, it will benefit you. This will make the overall cost of the loan lesser.

When can you avail the home loan transfer?

A home loan balance transfer can be availed after you’ve faithfully paid your existing home loan for at least 12 – 18 months.

Is the home loan and home loan balance transfer the same?

A home loan is when you apply for a loan to any bank to buy a home. It can be availed from any other financial institutions as well for the purchase of residential land, a property, land or any property purchase in general. In this case, there is an extensive documentation and verification process.

A home Loan Balance transfer is when you transfer an existing home loan from one bank to another. This can be done genrally after 12 to 18 months of the existing home loan. This refinancing can be due to a lower interest rate or extended period of repayment or other benefits.

How to calculate Home loan balance transfer?

The technological advancements today have made t much easier to calculate the home loan balance transfer. Many banks and other financial institutions have provided an automatic home loan balance transfer calculator on their website.

You just need to add the required details of the existing home loan, your property size and so on. The calculator on these websites will instantly calculate the home loan balance transfer amount and will also present you the results of the EMIs to be paid based on the loan amount, interest rate and the repayment period. It has all become so much easier now.

Eligibility Criteria

To eligible for any home loan balance transfer, the person needs to fulfil the following criteria.

  • Age: 23 to 65 years
  • Type of employment: Salaried or self-employed
  • Nationality: Resident Indians and NRIs

Documents Required

You need to present the following documents for availing the home loan balance transfer from any bank or financial institutions.

For salaried people

  • Identity proof
  • Address proof
  • Documents related to the existing loan
  • Last 3 month’s salary slips
  • Last 6 months’ bank statements
  • Passport size photograph

For self-employed people

  • Identity proof
  • Residential address proof
  • Documents related to the existing loan
  • Last 3 years’ Income Tax Returns along with computation of income
  • Last 6 months’ bank statements
  • Last 3 years’ balance sheet and profit and loss account statements