Home Loan Transfer: Everything you need to know
Are you still paying your EMIs at the previous rate when the whole world is enjoying the facility of Home Loan Transfer? Home Loan Interest Rates are at an all-time low, and this is a chance for you to grab this opportunity by opting for a Home Loan Transfer. Who wants to pay high-interest rates when you can choose attractive lower interest rates, and that too quickly? Home Loan Transfer is a facility that is going to save you a whole lot of money, but, what exactly is it and how do you reap its benefits? Read on to find out!
What is Home Loan Transfer
Home Loan Transfer is exactly what its name suggests. It is the process of transferring the outstanding amount of a Home Loan to a different lender with a lower rate of interest. Inflation makes all borrowers nervous every now and then; it greatly affects the rate of interest you pay on your Home Loan. Most borrowers go for a Home Loan Transfer in such cases, as it helps them lower their EMIs and gives them stability. Dodge the problem of high-interest rates and choose Home Loan Transfer today! It comes with several benefits.
3 Factors to consider before choosing Home Loan Transfer
Although a Home Loan Transfer is an excellent option to choose from, you cannot go for it without any prior research. Here are 3 things you need to consider before you apply for a Home Loan Transfer:
• Terms and conditions
We often avoid reading the fine print, which is a major mistake. Read every term and condition put forth by the new lender, and go ahead only when everything looks satisfactory to you.
• Refinancing cost and benefits
Find out all the charges and fees you will have to pay as a refinancing cost. Also, read and do thorough research about the benefits you will be able to enjoy with a Home Loan Transfer.
Before applying for a Home Loan Transfer, use an online Home Loan Transfer Eligibility Calculator to find out whether you are eligible for a Home Loan Transfer. You should have a track record of at least 12 months of payment and it is applicable only for residential properties.
Home Loan Transfer to Other Bank
A Home Loan Transfer Request Letter has to be produced when you apply for a Loan Transfer. The Home Loan Transfer Request Letter format must include all the details required for approval of the transfer. Follow these steps for a 'Home Loan transfer to other bank’:
• Home Loan Transfer Request letter format allows you to convince the bank to let you switch to a lender offering better interest rates. Write the request letter listing all your reasons in detail. When the request
letter and the documentation are error-free, the bank will approve your transfer based on the persuasive power of your letter.
• If your letter convinces your lender to approve the balance transfer, they will provide a NOC (No Objection Certificate) or a letter of consent, which you will need when you file an application.
• Submit your documents to the new lender. Along with documents like KYC and NOC, you may also have to submit your property papers, loan balance, and interest statements.
• The previous lender sends you a final confirmation message informing you that the previous loan contract has officially ended.
• Read the new lender’s terms and conditions, pay the fee, and sign the contract if everything is agreeable to you.
Home Loan Transfer to Another person
Instead of transferring your home loan to another bank, you can also choose the option of ‘Home Loan Transfer to another person’. This can be done in case you, as the owner, decide to sell the property for which you took out the loan. A letter of foreclosure must be provided by the seller to the buyer. The buyer then fills out a new application form and pays the applicable charges to proceed with the transfer.
A Home Loan Transfer is an excellent facility for buyers to control their expenses when inflation is at its peak. Choose a Home Loan Transfer and live peacefully.
L & T Finance provides Home Loan Transfer with low-interest rates to their customers. If you are looking to avail of a Home Loan Transfer, apply now!