Last Updated on December 16, 2024 by Rida Gul
Table of Contents
Checklist for a Home Loan Balance Transfer
Almost every lender offers a home loan balance transfer or refinancing. You can switch your home loan to a new lender for a better deal when you have the required eligibility. The refinancing process requires you to submit quite a few documents. Before you learn about the necessary documents for the same, you should know when to opt for it.
When Does a Home Loan Bank Transfer Seem the Most Sensible?
- A home loan balance transfer makes the most sense during the initial years of the loan.
- You should go for it if you get a low-interest rate from the new lender.
- Determine the EMI using a home loan calculator and go for a balance transfer if the rate becomes low.
- If you want a prepayment facility, you can go for a home loan balance transfer.
- A home loan balance transfer is perfect when you need a top-up loan to meet financial objectives like higher education, weddings, or other things.
List of Documents Required from Your Existing Lender
Consent Letter:
You will have to provide your existing lender with a formal application asking for a consent letter about the home loan transfer.
No Objection Certificate:
An NOC must mention that your existing lender has no issue regarding the home loan transfer.
Home Loan Statement:
You must get a home loan statement with a record of your repayment. The statement should also contain the outstanding loan amount.
Foreclosure Letter:
The foreclosure letter needs to state that your home loan is foreclosed on a specific date and the outstanding balance is zero. You will get the letter when your new lender pays back the outstanding loan amount to your previous lender.
Post-dated Cheques:
If you submitted any post-dated cheques while opting for a loan, you must remember to collect the pending cheques.
Property Documents:
You probably submitted some property-related documents to your existing lender. Remember to collect them while switching to a new lender.
Documents Demanded By Your New Lender
KYC Documents
Apart from the PAN Card (compulsory), you need to submit the following list:
- Voter’s ID
- NREGA-issued job card
- Aadhar card
- Driving license
The KYC documents are required to verify your identity.
Residence Proof
The documents that are eligible for residence proof are as follows:
- Aadhar card
- Voter’s ID card
- Passport
- Driving license
The documents prove that you have given the right address details.
Financial Documents
You must present the following as proof of your financial capacity:
- Latest salary slips
- Form 16
- Salary account bank statements for the last six months
- Latest 2 years ITR and 6 months bank statement for self employed individuals
The documents are proof of your income source and repayment capacity.
Property Documents
The property ownership documents that you need to present are as follows:
- Property purchase documents or proof of property ownership documents
- Stamp duty payments
- NOC issued by your housing society or developer
The documents verify the purchase.
Existing Home Loan Documents
You must collect these from your existing lender and submit them to your new lender:
- Loan agreement or loan sanction letter
- Approvals issued by your existing lender, including consent letter, Foreclosure letter, and NOC
- Updated home loan statement
The documents will help verify all details regarding your existing loan.
Read More: How To Write A Cover Letter?
Closing Thoughts
A home loan balance transfer facility can reduce the burden of interest from your shoulder. If you are looking for more favorable terms for your home loan, transfer it to Standard Chartered Bank.
You will receive several facilities like flexible repayment terms, extensive tenures, suitable interest rates, and more. Contact the bank for an easy balance transfer process, and also avail a topup for your personal expenses. You will receive quality assistance at every step.
Apart from this, if you are interested to know about maximum housing loan you can get then visit our Finance category.
