Do you have an existing Home Loan account, and paying a higher Home Loan interest rate along with bad customer services? You need not suffer as you can always switch your current Home Loan account to a new lender offering a lower rate, and save money!

Yes, leading lenders always look for existing Home Loan borrowers and offer them a lower rate. They also offer plenty of services such as 3-EMI holiday to help prepare for EMI repayments, top-up loan to cover other needs and more.

In the context of our discussion about Home Loan Balance Transfer, let’s provide some steps that will help you easily apply for it online!

Step 1 – Inform Your Current Lender
The first step towards availing a Home Loan balance transfer service will be informing your existing Home Loan lender about your wish to transfer your Home Loan. Along with your intention to transfer the loan account to a new lender, you may also have to state the reason for doing it.

Step 2 – Negotiate
Once your current lender comes to know about your plan to switch your Home Loan account, it may go ahead and strike a new deal with you to bring down the loan cost. Why? Nobody wants to lose a customer! You must have analysed of how much money you will save by transferring the Home Loan. If your existing lender is unable to provide you a comparative deal, it’s better to move on to a new lender!

Step 3 – Request a NOC
You will then need to submit an application to your existing lender, seeking a ‘No Objection Certificate’ for initiating a housing loan balance transfer.

Step 4 – Extra Documents
Ask for some additional documents from your current lender such as a consent letter, foreclosure letter, property documents and final Home Loan statement showcasing EMIs payments.

Step 5 – Post-Dated Cheques Cancellation and Pay Charges
Take back or cancel all the post-dated cheques that you had given to your current lender. Also, pay the charges, if any, for untimely foreclosure of the loan.

Step 6 – Apply for a Housing Loan Balance Transfer Online
Once you have got all the documents required for Home Loan balance transfer, start applying for it online. Many leading online lenders will offer you the facility and help you save money.

Step 7 – Submit All the Documents
Generally, your probable or new lender may ask you to submit following documents such as:
- Personal and address details
- Employment and income details
- Property documents
- Financial documents
- NOC letter from your existing lender

Step 8 – Get a Quick Approval
If your eligibility and documents are in sync with the terms of your new lender, your housing loan balance transfer request should get be approved within 5 minutes. If you are unsure of the eligibility, you can use an online Home Loan eligibility calculator.

Step 9 – Pay Off and Settle the Existing Loan
Your new lender will pay off your existing Home Loan by clearing the remaining amount to your previous lender.

Step 10 – Sign the Loan Agreement
Once your existing loan is paid off, you can now sign a new loan deal with your new lender.

Step 11 – Start a New Loan and Enjoy Lower Rates
Now that you have completed your formalities of a housing loan balance transfer, you can now start enjoying a lower Home Loan rate by paying lower EMIs. Thus, ultimately your purpose of saving money is served.

The Bottom Line
You just went through checklist or steps to follow to undergoing an online housing loan balance transfer. Follow the steps if you are all set to do it now!

Author's Bio: 

Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India. Currently based in Gurgaon, Arwind Sharma is a name to reckon with when it comes to financial management for big brands. A post-graduate in business economics, he is an alumni of Princeton University, USA. During his free time, Arwind teaches children from marginalised sections of society and also work on his blog.