Is your soaring home loan interest squeezing dry your pocket? Feeling the heat of high interest rates on your existing home loan? Don't worry!! Get your high-interest home loan transferred into a lower interest rate with Home Loan Transfer on policybazaar.com. Also known as Balance Transfer home loan, you also get the option of "Top-up Loan" in addition to the balance you transfer. Home loan transfer is particularly availed to pay off the existing home loans, at a lower interest rate than the existing one. The Top-up amount provides cash at your disposal for any need that might arise in the way.
The standard eligibility criteria for getting a home loan transfer are:
Minimum age of 18 or 21 years as different for different banks
Maximum age of 60 or 65 years
Minimum annual income should be approximately INR 1.44 lakhs, less or more
For self-employed professionals or self-employed non-professionals, the company or firm should be in operation for 3 years or more
For self-employed professionals or self-employed non-professionals, the company or firm should make cash profits for the last 2 years
Documents Required for Home Loan Transfer:
Often, transferring the existing home loan into a low-interest balance transfer home loan may include laborious documentation procedure, but you will reap the benefits for years to come. The standard documents that you need to submit for home loan transfer are:
Duly filled application form with passport sized photographs
Photocopy of PAN Card as identity proof
Driving license or voter's ID as residential proof
Salary slips for last 4 to 6 months
Form -16 A for last 3 years
Bank statement for the last one year
Repayment track record from the existing home loan lender
List of documents with the current lender
Photocopy of property document
Marriage certificate if the co-applicant is your spouse
In addition to these, other documents that might be essential for getting a home loan transfer are No Objection Certificate from the society, proof of outstanding loans if any, copy of share certificates issued by society, credit card statement if any, and lease deed agreement between town planning authority and the builder.
The key features of home loan transfer or Balance Transfer home loan are:
Lower interest rates than existing home loan
Reduced Equated Monthly Installments
Reduced tenure for existing home loan
Top-up amount in addition to balance transfer to meet your emergency financial needs
Easy to secure and convenient
Why You Should Take a Home Loan Transfer?
Home loan transfer is a smart choice if:
You want to reduce the rate of interest on your existing home loan and lower your EMI
You want to lower the tenure of your existing home loan to pay off the liabilities faster
You want to utilize the equity in your home to generate money for your unexpected financial needs. You can take a top-up over the balance transfer of your existing loan to meet the cash need that might arise from time to time
Home loan transfer is not only about saving money; you can use the balance you transfer to invest in different financial needs. By switching to another home loan lender, you may get a better deal, with reduced EMI and lower rate of interests. Moreover, banks and financial institutions have minimized the hurdles of availing home loan transfer today by reducing documentation procedure and approval time.
How to Determine the Loan Amount:
Generally, banks and financial institutions determine the amount of loan you are eligible for based on the following criteria:
Assets and liabilities
Continuity and stability of income
Number of dependents
100% of the principal amount outstanding on your loan, and other charges based on loan foreclosure statement, or
80% of market value, whichever is lower
Calculate your home loan transfer amount eligibility with our Loan Eligibility Calculator. Simply mention the rate of your existing home loan and pre-payment charges, and get instant quotes on lucrative loan rates from other banks. Our calculator also tells how much you can save on transferring your loan into a low-interest home loan from a different lending institution.
Interest Rate and Maximum Loan Tenure:
For home loan transfer, the rate of interest varies from one bank to another, depending on your existing loan amount, balance tenure and repayment capacity. However, even a 1% reduction in interest rate can save you a whopping INR 1.5 lakhs on a home loan of INR 10 lakhs for a period of 20 years. The maximum tenure for home loan transfer is generally fixed up to 20 years for most banks and financial institutions in India.
Fees and Penalties:
Earlier a pre-payment fee was payable to the existing bank or lending institution, which was to be taken into consideration for home loan transfer but today most of the banks do not levy any foreclosure charges for pre payment of loans as mandated by RBI.
Compare Home Loan Transfer Interest Rates:
When you choose from home loan transfer, don't settle for a higher rate of interest. It is a good opportunity to grab a better deal from other lending institutions with lower interest rates and reduce your EMI.
Compare the interest rates offered by different banks at policybazaar.com and make a smart choice. Make your own choice intelligently, reviewing and comparing different deals offered by lending institutions.
You can also apply for home loan transfer online, and get the most competitive interest rates from different banking institutions. Call us todayto learn more about home loan transfer.