Do you feel like you're paying a high interest rate on your home loan? Well, there's no need to worry because you have the option of transferring the remaining of your home loan instalments to another financial institution which offers lower interest rates. However, the interest rates offered to you depend on your credit profile and eligibility, among other factors. There are some key rules and regulations related to home loan balance transfer that you should be aware of.
Financial institutions have established eligibility checklists that you have to meet before your balance transfer request is approved. To start your home loan balance transfer process, you should meet the following criteria:
You should have an active home loan without any defaults on the EMIs for at least 12 months.
Irrespective of the condition your property is in (ready-to-move-in or under construction), registration of the property is mandatory before applying for a balance transfer.
Every homeowner, salaried or self-employed, has to furnish certain documents to validate their information. While some lenders may require additional documents, you should have the following standard paperwork with you at all times during the home loan balance transfer process:
Document Category | Accepted Documents |
Application Form |
For the IIFL Home Loan application form, click here. |
Identity Proof |
|
Address Proof |
|
Income Proof |
|
Property-related |
|
Additional |
|
You can use IIFL Home Loan’s balance transfer calculator to get a good idea of all your potential savings and charges.
Among all the things noted, the most important thing is to check how you can benefit from different financial institutions. Each lender comes with their own set of rules and regulations related to their home loan balance transfer.
Moreover, be on the lookout for additional charges and updated RBI guidelines for home loan balance transfers. Ensure that you read more about Home Loan Balance Transfers before making the decision.
The Home Loan Balance Transfer meaning is that you can transfer your outstanding home loan balance to a different lender for lower interest rates.
It can be a good idea to transfer your remaining home loan instalments if you find a lender offering lower interest rates. A drop in interest rate can mean a lower EMI for you. You must determine whether a Home Loan Balance transfer is good or bad for you by checking your remaining loan balance and comparing interest rates.
A balance transfer is when you switch from your existing lender to a new one to avail of lower interest rates. Resetting a home loan is when you negotiate with your existing lender to match the terms and conditions of the market and enjoy the home loan transfer benefits.
You can choose either the fixed or floating interest rate or switch between the two depending on which helps you maximise your savings. With fixed-rate interest, you get to lock in the existing interest rate. Floating interest rate home loans are where the interest rates vary with market fluctuations.
IIFL Home Loans has set no limit to the balance transfer amount, but other lenders may have a maximum limit. Make sure you check with the lender before applying for a balance transfer.
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