A home loan balance transfer is also called home-loan refinancing. This is when you move your outstanding home loan from your current lender to a new bank or housing finance company that offers you better terms.
Specifically, the new lender pays off your existing loan, and you start paying EMIs to them instead.
If another lender offers a lower rate than your current one, transferring can reduce your interest burden and total cost of the loan.
You can potentially lower your monthly EMIs or extend the remaining tenure, making repayments more comfortable.
Some lenders let you prepay a part of the principal without hefty charges, helping you reduce the outstanding balance faster.
Many banks let you take an additional “top-up” loan during the transfer. This extra money can be used for home renovation, education, or other needs.
You might switch to a lender that offers more flexible repayment options, lower processing or foreclosure fees, or better customer service.
This is what is balance transfer in home loan. Now, let’s see.
How does the Balance Transfer in Loan Work?
Inform your current lender that you want to transfer your home loan.
Request a No Objection Certificate (NOC).
Submit this NOC, along with KYC, property documents, and your outstanding balance sheet, to the new lender.
The new lender arranges approval and pays off your existing loan.
You then pay any processing or conversion fees to the new lender and start repaying them under the agreed terms.
I hope you found this information helpful.
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Hi,
I have recently transferred my ongoing housing loan from one bank to another for lower interest rates, better terms, and better service. This is known as a home loan balance transfer. Read more about it here:
Read more:
What is home loan balance transfer to other bank?
When can I transfer my home loan to another bank?
Feeling stuck with a high-interest housing loan? Then do a balance transfer with NoBroker at zero fees and lower your EMI burden
What is Balance Transfer in Home Loans
Tanika Bansal
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3 Year
2022-07-06T12:07:34+00:00 2022-07-06T18:50:04+00:00Comment
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