Home loan balance transfer is the process of transferring a housing loan from one lender to another. Individuals avail this facility to lower the interest rate on their borrowings.

Borrowers can negotiate with other lenders for better terms on their home loans such as more competitive interest rate, top-up loans, etc. If they successfully manage a better deal, then they have the provision to shift their loans. During this process, the existing financial institution will receive all its dues, and individuals are required to repay the remaining EMIs to their new lender.

Applicants have to submit a list of essential documents to their existing and new lender to successfully complete this process.

At first, borrowers need to collect a series of documents from their current lender. These are –
  1. Consent letter (individuals have to submit an application requesting home loan transfer to avail this letter).
  2. NOC or no objection certificate (mentioning that the current lender has no issues with this transfer).
  3. Foreclosure letter.
  4. Home loan statement.
  5. Property documents.
  6. Post-dated cheques.
Borrowers need to submit another set of vital documents to the new lender. These are –
  1. KYC documents.
  2. Address proof.
  3. Income proof, i.e. salary slips, Form 16, etc.
  4. Bank account statements for the previous six months.
Therefore, borrowers planning for a home loan balance transfer should make a note of these documents and arrange them in advance. Keeping these documents handy will make the home loan transfer process smooth and hassle-free.