Many borrowers take home loans and then find new loan plans that have much better terms as compared to their current ones. In such cases, these borrowers opt to shift their home loans to other lenders for better benefits. This is called a home loan balance transfer. It involves transferring the outstanding loan amount from one lender to another. There could be numerous reasons for this transfer, such as a lower home loan balance transfer interest rate, better repayment tenure, or even a top-up loan.

While transferring your home loan can be a wise decision, there are certain things that one needs to be ready with, such as the documents required by the new lender for a home loan balance transfer. There have been cases where borrowers have struggled with the documentation process that lenders set for a home loan balance transfer. However, all these hassles can easily be avoided if you are prepared beforehand.

So, take a look at a general list of documents that are required by lenders from those looking to transfer their home loans:

  1. Property documents

The new lender will require the following property documents:

  • Registration certificate
  • Stamp duty documents
  • Papers stating the ownership of the property

  1. Address documents

Make sure to keep the following documents required for proof of address:

  • PAN card
  • Aadhaar card
  • Driving license
  • Voter ID
  • Passport

  1. KYC documents

Any lender would require the following KYC documents required for home loan balance transfer:

  • PAN card
  • Driving license
  • Aadhaar card
  • Voter ID

  1. Financial documents

Lenders require seeing the following financial documents for proof of income:

  • Latest salary slips
  • Form 16
  • Bank statements for the past 6 months

  1. Post-dated cheques

At the time of applying for a home loan, you would have submitted post-dated cheques to the lender. The new lender will require these cheques to get the home loan transferred.

  1. No Objection Certificate (NOC)

The existing lender has to issue an NOC stating that they have no objections to the transfer of the loan to the new lender.

  1. Home loan statement

A home loan statement includes the existing loan’s EMI payment record. The reason why this statement is so important is that it includes the outstanding loan amount that is yet to be cleared.

  1. Consent letter

If you wish to apply for a home loan balance transfer, a formal application needs to be sent to the current lender informing them about your decision. Make sure to request a consent letter as the new lender will need it to go ahead with the transfer.

  1. Foreclosure letter

This letter acts as proof that the home loan has been repaid in full at a given date. You will get this letter once the lender receives the payment of the outstanding loan amount.

Do note that this is just a general list of documents that are required for a home loan balance transfer. However, financial institutions could have differing requirements, which is why it is best to check with the lender before going ahead.

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