It is not necessary to take a home loan and then stick with the same lender throughout the loan’s tenure. Often, borrowers find current home loan plans to offer better terms as compared to their existing plans that they applied for a few years back.
Now, this is because financial institutions keep updating their loan plan with revised terms to attract more customers. But this does not mean that you cannot enjoy the benefits of a new home loan plan just because of your existing plan. You always have the option of applying for a home loan balance transfer. With this transfer, your existing loan amount left to be repaid will get transferred from one lender to another. Some of the most common reasons for this transfer are getting a lower home loan balance transfer interest rate, top-up loan, or even a better repayment tenure.
However, before going ahead with the transfer, you first need to be familiar with the documents required by the new lender. A loan documentation process can get quite complicated if the documents needed by the lender are not in order. This complication can easily be avoided if you are aware of all the documents that are needed to be submitted.
So, go through a list of documents that borrowers looking to transfer their home loans should keep ready:
- Documents for address proof
You will need to submit documents for address proof such as your Aadhaar card, PAN card, passport, driving license, and voter ID.
- Property-related documents
Property documents include the registration certificate, stamp duty documents, as well as papers that indicate ownership of the property.
- KYC documents
While transferring your home loan, make sure to keep the KYC documents including your driving license, PAN card, Aadhaar card, and voter ID with you.
- Financial documents
The new lender will require financial documents such as your Form 16, latest salary slips, and bank statements from the past 6 months.
- Foreclosure letter
A foreclosure letter states that the home loan has been cleared with the current lender on a particular date. This lender will be given by your current lender once they receive full payment for the outstanding loan amount.
- Consent letter
To go ahead with the home loan balance transfer, you will need to send an application to the current lender. The lender will then give you a consent letter that needs to be given to the new lender.
- Home loan statement
This statement will state the loan’s entire EMI payment history. It states the outstanding loan amount that is yet to be cleared.
- No Objection Certificate (NOC)
An NOC must be given by the existing lender stating that they have no objection to the home loan being transferred.
- Post-dated cheques
The post-dated cheques that you have given to the current lender while applying for the home loan will have to be submitted to the new lender.
Also, keep in mind that this is just a general list of documents. Documents required for home loan balance transfer could differ as per each financial institution’s requirements. Therefore, it is best to check with the lender about their exact documentation requirements.
