Transferring your home loan can be a profitable and rewarding decision; however, it is important for you to consider several factors and note a few facts to ensure maximum success.
If you are being financially drained by paying high EMIs because of high interest rates on your home loan, perhaps it is time for you to seek a home loan balance transfer. Also called refinancing or switching your home loan, this move may result in a lower interest but you must remember that it isn’t an easy task. To ace this move, it is imperative that you understand the process and consider several factors before the transfer.
The top 5 things to watch out for during a home loan balance transfer are:
-Home loan balance transfer charges
-The process of the transfer
-New interest rates
-Availability of a low-interest top up loan
-Customer service of your new lender
Not considering these factors can cause you to regret your decision later on. Here’s a detailed look at these factors and other considerations to ensure that your home loan balance transfer is both successful and affordable.
Points to consider before transferring your home loan
1. Checking the market for affordable interest rates: Before you go for an all-out transfer, it is important for you to study the interest rates offered by various lenders in the market. You should check for what system they are based on and even whether they are floating or fixed. The aim here is to perform a holistic analysis of the interest rates offered by the various lenders.
2. Studying the lender’s profile: The market is full of lending institutions. Each of these have garnered a certain reputation over time. It is important for you to know all about your chosen lender’s customer service. To do this you can read reviews and testimonials on various platforms or even talk with old customers. It is important to select a trustworthy lender who has excellent customer service.
3. Getting a letter from previous lender: When you are in the process of making a transfer, it is important to get approval from your existing lender. This would involve either getting a signed NOC or letter.
4. Submitting the letter to the new lender: Once you have an NOC from your old lender, you have to submit this to the new lender. Once your new lender approves it, your home loan is ready to be transferred.
5. Transferring documents: After this step, your property related documents would be transferred to the new lender. It is important for you to be cautious at this step and ensure that you do not leave out any document from being transferred.
6. Checking for charges and costs: A home loan balance transfer can come with numerous costs such as processing fee, application fee, legal fee and even prepayment charges concerning your new and existing lender. Carefully understand all the costs you have to pay and ask your lenders all questions you have in mind about the costs. Make sure you negotiate for low fees and penalties.
7. Ensure that you switch early in the tenor: Performing a balance transfer in the latter half of the tenor is futile as most of your interest-led EMI payments have been made. If you are planning a transfer ensure that you do it in the earlier half of the tenor. This can help you benefit more from paying lower Home Loan interest rates when you complete the transfer to a new lender.
If you consider these factors before the transfer, it is more likely that you would make a rewarding decision.
Steps involved in applying for a home loan balance transfer
The process of acquiring a home loan balance transfer has been vastly simplified thanks to the advent of user-friendly websites. Financial institutions have begun to understand the value of offering convenient and easy solutions to those in need of a home loan balance transfer. Here’s how you can apply for a balance transfer in just a few steps:
1. Input your personal information
In the online form, begin the process by entering your basic details like date of birth, place of residence, and contact information.
2. Input your financial information
In order to determine a plan best-suited to fulfil your individual needs, just enter your income details. The lender will carry out calculations and provide you with a deal that complements your financial standing.
3. Input your employment details
The third step requires you to share information about your job or profession. To proceed, simply answer a few questions pertaining to your employment status.
4. Input details of your current property
In this step, give the lender some details regarding your existing property—the one for which you seek a home loan balance transfer.
5. Check details of your loan offer
Use an advanced eligibility calculator to figure out all the offers that are available for you. It analyses your details and provides a suitable plan to meet your requirements.
6. Input details of your new property
This step involves sharing relevant details of your new property with the lender. Factors like address and area are considered to calculate the best deal available to you.
7. Pay a small secure fee
The secure fee is required for reservation of the offer calculated for you. After this is done, a relationship manager representing the lender will contact you and help out with documentation and further processes. The secure fee can be easily paid online through a safe payment gateway.
8. Upload all relevant documents on the lender’s website
In the final step, just upload copies of documents related to your loan. This includes an identity, address, and signature proof, along with your employment and income details. It also requires you to upload a photograph for verification purposes.
Opt for a home loan balance transfer from Bajaj Finserv and enjoy the benefits of low interest, no hidden costs, a 3 EMI holiday and an attractive top-up loan feature.
