Known for its charm, luxury, and modern lifestyle, Bangalore offers you all the imaginable comforts of living in a metro. This city’s significant population comprises working professionals and people in business, making it a sought-after place to live and work in India.
Being a booming IT hub of India, many working professionals are always on the lookout for 2 & 3 BHK luxury apartments in Bangalore. Naturally, home loans are equally in demand. Banks view customers’ attention with attractive rates of interest and benefits. Home loan balance transfer is thus becoming quite popular amongst homebuyers.
Before going into the details of Home Loan Balance Transfer, it is essential that you know almost everything about this great facility offered by financial institutions.
What is a Home Loan Balance Transfer?
This facility is also known as ‘refinancing’, where your home loan balance is transferred to another lender. This benefits the payer only when they opt for a lender who is offering them a lower interest rate. If you find an attractive offer, you can shift your outstanding balance to a new lender and save a lot in the process.
How do I start my Home Loan Balance Transfer process?
The process is straightforward and involves home loan balance transfer charges laid down by the Reserve Bank of India (RBI). Here are a few steps that you may have to follow to undergo this procedure:
- Once you come across a great lender and want to transfer your loan, you must first fulfil your current lender’s terms and conditions. If you don’t, you will not be able to opt for the balance transfer facility.
- After completing all the terms and conditions with the current lender, you will be free to go for the balance transfer and explore more refinancing options available in the market.
- Make sure you compare all the opportunities and offers that you receive from every lender. Once done, you can apply for a home loan by filling in a simple form.
- You may be required to submit some documentation for the approval of your home loan transfer which may consist of:
- Passport size photo
- Salary slips
- Bank statements
- KYC documents like address proof and age proof
- Proof of your existing business and other financial statements if you’re self-employed
Your loan transfer application requires almost the same kind of details as your original loan process did.
What are the benefits of transferring the home loan amount?
- The lenders who want to do business with you might attract you with a noticeably lower interest rate than what you decided on during your original home loan disbursement. This revised rate might help you save more.
- You have an option to extend the repayment tenure during the balance transfer process as per the new lender’s rules.
- Home loan transfer can also take place if you are selling property to someone else.
- Many banks offer you a top-up on your current amount that may come to you as a perk.
What are the RBI guidelines for home loan transfer?
A good thing about transferring your home loan from one lender to another is that the new lender cannot charge you any transfer fees. The primary stipulation is that your financial and work portfolio should suit the requirement of the loan lender. Another guideline is that the borrower needs to waive off the old payment of charges.
Will transferring your home loan amount affect your credit score?
Every borrower who is tired of the current heavy interest rate can freely transfer their home loan balance without hurting their credit score.
Taking up the option of home loan transfer for a 2 & 3 bhk luxury apartment in Bangalore is easy and effective. Thanks to one too many loan lenders, you can now live in your dream home the way you always wished for.