How to transfer your Home Loan from one bank to another?

A home loan balance transfer can save you from paying high interest in your existing loan agreement

When a customer transfers his existing home loan to another bank for a lower interest rate, it is known as a home loan balance transfer. A home loan balance transfer is a fantastic option for people who have taken a loan, yet few take advantage of it. The home loan transfer process is effective and should be used by everyone who has taken a home loan. 

You can transfer your home loan balance to IDFC FIRST Bank and use the attractive deals and cheaper home loan interest rates on offer.

What is the home loan transfer process?

Here is how to transfer a home loan from one bank to another.

• Go to the bank’s website.
• Read the terms and conditions, including the interest rate and processing fee.
• If you are happy with the plan, you can request a balance transfer.
• Fill in the relevant fields. It includes your name, home type, current loan tenure, and the bank's name.
• After you have finished, you will be able to see your loan offer.
• Complete the payment process and upload your papers.
• Submit your application and wait for confirmation.

What are the documents needed for a home loan transfer to another bank?

Some documents that you will require for the transfer are:

• Proof of your identity
• Proof of residence
• Documents related to the current loan
• Salary slips from the last three months
• Bank statements from the previous six months
• Balance sheet and profit and loss account statements for the last three years for self-employed individuals.
• A passport size photo

You might also need:

• A letter with the present lender's letterhead detailing the list of property documents in their possession.
• On the letterhead of your current banking institution, send a copy of your recent outstanding balance letter.
• A photocopy of the title deeds (including Own Contribution Proof)

What are the home loan transfer charges?

Processing fees, application fees, administrative fees, and inspection fees are part of the balance transfer process. Your current and new lender levies these fees. Determine whether the expense of a balance transfer is lower than the amount you owe in interest.

IDFC FIRST Bank charges less interest and processing fees for home loan transfers. You can also enjoy a seamless balance transfer process and many other attractive benefits of banking with IDFC FIRST Bank.

How is the home loan balance transfer interest rate determined?

The repo linked lending rate (RLLR) is connected to the repo rate of the Reserve Bank of India (RBI). It is the interest at which financial institutions borrow money from the RBI. Banks that provide RLLR-based loans drop their interest rates when the RBI lowers the repo rate. The bank's home loan interest rate fluctuates in proportion to changes in the repo rate.

If the RBI raises or lowers the rate, the RLLR home loan guarantees that borrowers can use the benefit. The reduction in the repo rate helps homebuyers by lowering the interest rate on their house loan. As a result, the EMI burden is reduced.

A home loan balance transfer is a useful tool you should use if you have a home loan. It helps you better plan your finances and saves money, which you can invest in mutual funds and fixed deposits (FDs). You can learn more about the feature here.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.