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  • Home Loan Balance Transfer

    Do you have an existing home loan? Transfer the balance today to another bank and Save Big. You can reduce the amount of your monthly EMIs or you can also pay off the loan faster and be debt-free.

    "Home loan balance transfer is also known as refinance home loan. It is a process where a housing loan is paid off using another loan. Generally, borrowers transfer the balance of an existing loan to another bank by applying for a home loan with them. This is done to enjoy lower rates of interest.

    In case of a home loan balance transfer, you will have to request for all the refinance loan documents that you had already submitted to your present lender. Once you get the consent letter, submit all documents along with the consent letter to the new lender. Henceforth, all loan repayments will have to be settled with your new lender and the old account will be closed."

    How to transfer a home loan balance [Process]

    In order to transfer home loan balance, follow the steps mentioned below:

    Step.1: Request your current lender for the documents required to refinance the loan.

    Step.2: After the lender provides you with a consenting letter with the outstanding loan amount, these documents will have to be provided to the new lender you wish to refinance your loan with.

    Step.3: The new lender will then transfer the outstanding amount to the old lender.

    Step.4: The old loan account will now be closed, and all future payments will go towards the loan you have availed with the new lender.

    Step.5: The old lender will then hand over all the property documents to the new lender, officially completing the refinancing process.

    Lowest home loan transfer rates from top 10 banks

    Bank Lowest EMI Home loan transfer rates
    SBI Home Loan Rs.755 for 30 Years 8.30%
    Bank of Baroda Rs.755 for 30 Years 8.30%
    Union Bank of India Rs.755 for 30 Years 8.30%
    HDFC Home Loan Rs.758 for 30 Years 8.35%
    Axis Bank Rs.758 for 30 Years 8.35%
    Indiabulls Rs.758 for 30 Years 8.35%
    PNB Rs.758 for 30 Years 8.35%
    OBC Rs.802 for 25 Years 8.45%
    Central Bank of India Rs.769 for 30 Years 8.50%
    LIC Housing Finance Rs.769 for 30 Years 8.50%

    Compare home loan transfer rates from other banks

    Bank Lowest EMI Home loan transfer rates
    Citibank Rs.805 for 25 Years 8.50%
    IIFL Rs.769 for 30 Years 8.50%
    Indian Bank Rs.868 for 20 Years 8.50%
    Standard Chartered Bank Rs.871 for 20 Years 8.55%
    Dena Bank Rs.809 for 25 Years 8.55%
    United Bank of India Rs.772 for 30 Years 8.55%
    IDFC Bank Rs.772 for 30 Years 8.55%
    PNB Housing Finance Rs.776 for 30 Years 8.60%
    DBS Bank Rs.874 for 20 Years 8.60%
    DHFL Rs.776 for 30 Years 8.60%
    Kotak Bank Rs.874 for 20 Years 8.60%
    Vijaya Bank Rs.780 for 30 Years 8.65%
    Jammu And Kashmir Bank Rs.994 for 15 Years 8.65%
    Indian Overseas Bank Rs.780 for 30 Years 8.65%
    HSBC Bank Rs.815 for 25 Years 8.65%
    Canara Bank Rs.780 for 30 Years 8.65%
    Bank of Maharashtra Rs.783 for 30 Years 8.70%
    Punjab and Sind Bank Rs.787 for 30 Years 8.75%
    Corporation Bank Rs.794 for 30 Years 8.85%
    Federal Bank Rs.805 for 30 Years 9.00%
    Karur Vysya Bank Rs.846 for 25 Years 9.10%
    South Indian Bank Rs.812 for 30 Years 9.10%
    Yes Bank Rs.863 for 25 Years 9.35%
    Deutsche Bank Rs.929 for 20 Years 9.45%
    Karnataka Bank Rs.841 for 30 Years 9.50%
    Lakshmi Vilas Bank Rs.935 for 20 Years 9.55%
    LT Housing Finance Rs.870 for 30 Years 9.90%
    City Union Bank Rs.1,069 for 15 Years 9.90%
    Reliance Capital Rs.878 for 30 Years 10.00%
    Dhanlaxmi Bank Rs.972 for 20 Years 10.10%
    GIC Housing Finance Rs.982 for 20 Years 10.25%
    RBL Bank Rs.930 for 25 Years 10.30%
    DCB Bank Rs.997 for 20 Years 10.48%
    Edelweiss Rs.944 for 25 Years 10.50%

    Key features of home loan balance transfer

    Home loan balance transfer is a process of transferring your home loan amount from one bank to another. This is done mainly to lower the rates of interest or avail better service from the bank willing to takeover the home loan. This process is also known as refinancing and home loan take over.

    Steps for Home Loan Balance Transfer
    Home Loan Balance Transfer Process
    • Home loan balance transfer is a process wherein your home loan account will be transferred to another bank, meaning all future payments towards your home loan will have to go to the bank that has taken over the home loan.
    • Home loan balance transfers usually attract a processing fee of 1%, payable to the new bank. This is important to note as this may overshadow the savings you may incur if you transferred the loan, depending on the loan amount. However, the processing fee varies from bank to bank and is not fixed at 1%
    • Refinancing your home loan usually involves the same process as availing a new home loan
    • A home loan can be refinanced only after a certain time period, predetermined by the loan agreement
    • When the home loan is taken over by another bank, the existing bank transfers the outstanding principal amount to the new bank

    Benefits of home loan balance transfer

    • Transferring your home loan to another lender may lower your Equated Monthly Instalments (EMI) payable
    • The rate of interest on the home loan can reduce in the event you choose to transfer your home loan to another bank
    • There is a likelihood of your credit score increasing by transferring your home loan
    • The terms of the home loan can be negotiated, and you can choose the lender that suits your needs the best
    • The tenure of the home loan can be chosen to reduce, helping you save a lot on the total interest payable
    • You can also opt for a bank that provides better customer service than the bank that is currently servicing you
    • Refinancing your home loan has become hassle-free in this age where banks have incorporated modern technology into their operations.

    Eligibility criteria for home loan transfer

    When choosing to move your existing home loan to another bank, take care of the following requirements:

    • The applicant’s age must not be lesser than 21 years and not over 60 years at the time of application. The latter is 65 years for Self-Employed individuals.
    • The applicable loan amount is based on a number of factors, including, age of the applicant, current income, number of co-applicants, debt, the applicant’s retirement age, etc.
    • The applicant must have a clear history of 12-18 months worth of unbroken repayments on his/her current home loan.
    • The applicant must have a minimum work experience of 2 years, with the last 1 year spent in the current organization. For self-employed individuals, the expectation is 2 years in the same profession with the filing of the requisite ITR.
    • Additionally, some banks may require a definite gross family income and a clear credit history, minus any red flags and a minimum CIBIL score of 700 points.

    Documents required for home loan transfer

    Kindly carry along the following documents when you approach your prospective lender with regards to the home loan balance transfer.

    • Fully completed Application form.
    • The applicant’s self-attested photographs.
    • Identity proof (could be any government issued ID- PAN Card, Voter’s ID etc).
    • Residential address proof.
    • Proof of Age (10th or 12th Marks Cards, PAN Card, Voter’s ID etc).
    • Official Address (Applies for self-employed, can be rent agreement, utility bills, lease etc).
    • Income Proof in terms of prior 6 months bank account statements that shows salary credit, last 6 months salary slips and Form-16 accounting for the last 3 years.
    • For Self-Employed individuals, the income proof is established by-
      • Last 3 years ITR (self and business),
      • Last 12 months bank account statement (self and business),
      • Profit and Loss Account,
      • Balance Sheets that are thoroughly audited by a certified CA,
      • Complete Business Profile and Proof of Business Existence.
    • Bank statements amounting to last 12 months of the account from wherein the home loan EMIs were deducted.
    • A complete list of documents relating to the property, that is currently in possession of the present home loan lender. Also, the Loan statement copy.

    How much can I save by transferring my home loan balance?

    The amount of money you can save will depend on the following factors:

    • Principal amount of your outstanding home loan
    • Current EMI paid per month
    • The current tenure of the outstanding loan (in months)
    • Rate of interest provided by the new lender to which the loan will be transferred
    • Required tenure in months of the new balance transfer home loan

    For example, if the outstanding principal amount is Rs.40,00,000, the current EMI paid per month is Rs.40,000, the tenure of the current loan is 240 months (20 years), the interest rate offered by the new lender for balance transfer loan is 8.85% and, if the required tenure for the new loan is 240 months (20 years), you will save an amount of Rs.10,55,040. Your monthly EMI will reduce from Rs.40,000 to Rs.35,604.

    The total amount to be paid will reduce from Rs.96,00,000 to Rs.85,44,960. If you opt for a shorter tenure, you may not save a lot of money but you can pay off the loan faster with while paying a similar amount of EMI as your existing loan.

    4 Things to keep in mind before transferring your loan

    Although the process of refinancing you Housing Loan is a simple process in this day and age, one must be mindful about the process. An impetuous move to transfer the loan may cause more harm than good. Keep the following points in mind before transferring your home loan balance.

    1. Credibility – It is important that the new potential lender is credible in lending out money and the reduced interest rate offered is not just a promotional gimmick.
    2. Consider all costs – Sometimes it can be easy to neglect costs that are associated with refinancing a housing loan. At the end of the day, you are transferring the housing loan balance to save money. If the costs like stamp paper, documentation charges, processing fee, etc. outweigh the savings you receive, it becomes illogical to refinance your loan.
    3. Quality of service – Sometimes, the service provided by a particular ban can overshadow the marginal savings received by refinancing your mortgage. It is important to do your research on the quality of customer support that a particular lender provides.
    4. Go through the fine print – A lowered rate of interest should not cause an inconvenience to you in future. Reading the fine print of the agreement from the new lender and the existing lender as well will give you all the information required to base your decision on whether or not to refinance your home loan.

    Top 6 reasons to transfer your home loan balance

    1. Refinancing your loan may lower you Equated Monthly Instalments (EMI) [Use Home Loan Emi Calculator to compute your Home Loan EMIs.] in some cases.
    2. As mentioned earlier, the rate of interest payable towards the loan reduces.
    3. Transferring your home loan balance will increase your credit score as well.
    4. While refinancing your housing loan, you can negotiate for a shorter tenure with the new lender.
    5. Often times, while looking out for a new bank to refinance your loan, you can opt for a bank that provides better service than your existing bank.
    6. Refinancing your home loan in the age of technology has become hassle free. The documentation required is minimal and more often than not, it is a quick procedure.

    Home loan balance transfer calculator

    With technology inculcated into finance, one can effortlessly estimate the details and benefits he/she would receive from transferring a home loan to another bank. One simply needs to enter the basic details of the existing loan like outstanding loan amount, interest rate, tenure, etc. By entering these details, the calculator would be able to estimate the savings you would incur by transferring your balance to another bank. Some websites also provide you with a detailed list of the banks that refinance a home loan along with the interest rates, processing fee, EMI, savings, etc.

    Process to refinance your home loan from one bank to another

    Your home loan can be refinanced by following the steps mentioned below:

    • Obtain all the necessary documents required to transfer your home loan balance from your current lender.
    • Obtain a consenting letter from the existing bank along with the outstanding loan amount.
    • Provide these documents to the new bank that you wish to transfer the housing loan balance.
    • The new lender will then pay off the balance due to your old lender.
    • Subsequently, your old loan account will be closed, meaning all payments towards the loan will have to be paid to the new bank.
    • All property documents will then be handed over to the new bank, officially completing the process of transferring your home loan.

    Reasons why you need to transfer your home loan

    • The interest rate on your home loan may reduce after refinancing your home loan.
    • Either your EMI will reduce and your tenure will remain the same, or your EMI will remain the same and the tenure will become shorter.
    • This will make the overall cost of the loan lesser.

    When refinancing a home loan, one must always take into consideration the processing charges and balance transfer fees. If the new bank’s interest rate plus these additional charges still prove to be cheaper than the current loan, only then should a customer choose to refinance the loan.

    Why and when must you avail the home loan balance transfer?

    Why?

    • One can avail a home loan balance transfer if he/she is paying a higher interest rate towards a loan in a bank that offers a lower interest rate.
    • If a bank is unwilling to reduce the interest rate despite the fact that you have a cordial relationship with the organization.
    • In the occasion that other bank are offering lower rates of interest.

    When?

    • A home loan balance transfer can be availed 12 – 18 months after faithfully paying off your existing housing loan.

    Should you transfer the balance on your housing Loan or simply reset it?

    Transferring the balance from your home loan, although beneficial, is time consuming and has a lot of procedure associated with it. Not to mention that you will be breaking off a relationship with a bank that may have served you well. Resetting your balance with the same bank, on the other hand, is a simpler process. Not many people do this because they are oblivious to the fact that one can simply rest the interest rate of a loan by simply writing to the bank. This is an easier process to follow in order to reduce the interest rate on a housing loan.

    Therefore, the first choice should always be to rest the interest rate on a loan. In case the bank declines this request, you can always opt for refinancing afterwards.

    Difference between home loan and home loan balance transfer

    Home loan – A home loan is a loan availed from a bank or other financial institutions in order to purchase a house, land, construct a property or simply to renovate an existing property. A lot of documentation and verification is required to avail a home loan. It also is considerably harder to get a housing loan application approved.

    Home loan balance transfer – This is when you transfer an existing home loan from one bank to another. Also known as refinancing, this also helps an applicant avail lower interest rates and better services. There is lesser documentation involved in home loan balance transfer and it easier to attain when compared to a home loan.

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    Home Loan Balance Transfer Reviews

    • HDFC Limited Home Loan
      "Processing should be reduced"
      0.5 4.0/5 "Great!"
      They took lots of processing fee from HDFC home loan from my end, I availed Rs. 36 lakhs and they charged me Rs.30,000 processing fee. I got all the information through online. HDFC limited has balance transfer option, it was quickly processed.
      Was this review helpful? 0
      , pune
      Reviewed on May 16, 2019
    • andhra Bank Home Loan
      "Recommendable Bank"
      0.5 5.0/5 "Blown Away!"
      I am working with Andhra Bank, they gave me attractive interest for the housing loan since I am a staff. I took the loan amount of Rs. 11 lakhs for the duration of 20 years. The response is genuine to the customer. They have balance transfer, part payment and pre closure option.
      Was this review helpful? 1
      , visakhapatnam
      Reviewed on May 15, 2019
    • ICICI Bank Home Loan
      "BETTER"
      0.5 2.0/5 "Expected more"
      I have applied for the home loan with the ICICI BANK. The rate of interest was higher than others which was 14%. There is a option of balance transfer available with this bank. The documentation process was simple and it took time to get the loan.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on May 13, 2019
    • IndusInd Bank Home Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      I have done a balance transfer with the INDUSIND BANK where i have taken the home loan with this bank and the rate of interest was 8% which was fixed and closed this loan too. The documentation process was simple and easy to get the credit card.
      Was this review helpful? 0
      , chennai
      Reviewed on May 10, 2019
    • HDFC Limited Home Loan
      "Will not recommend to anyone. Pathetic people and service"
      0.5 1.0/5 "Really Bad"
      I have taken a home loan from HDFC LTD. The people do not know the process. They were asking for too many documents and I was not satisfied with what ever I provided. I have taken two other loans from other institutions and it was hassle free. I was told the loan would get sanctioned in 15 days. I waited for one month and they again asked for the paper work. It took total of two and half months. I was told I can transfer any kind of amount to do a part payment online to close the loan. Once the process was done I was told there is no online options. The rate of interest is of 9.35%.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 04, 2019
    • HDFC Limited Home Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      I had selected HDFC LIMITED for my Home Loan since i had inquired with them as well as with several other banks where HDFC only was having the transparent balance transfer option. The process has been smooth, but the transparency with the loan amount could have been improved where i was a little disappointed, the interest rate was competitive but.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 03, 2019
    • SBI Home Loan
      "Processing time is very longer"
      0.5 3.0/5 "Satisfactory"
      I belong to Haryana state and now I am working in Andhra Pradesh rite now . When I am decided to a balance transfer with SBI . They said it will take a very long in processing the loan . Though the interest rate is very less in SBI , I am not able to apply .
      Was this review helpful? 0
      , chandigarh
      Reviewed on May 02, 2019
    • LIC Housing Home Loan
      "Interest rate is very high"
      0.5 4.0/5 "Great!"
      LIC housing finance has provided me a loan when I required to buy a housing property . But the interest rate is very high to pay back for next 20 years . Being a middle class people , it is difficult for me . So I decided to go with the Balance transfer in private bank .
      Was this review helpful? 0
      , chandigarh
      Reviewed on May 02, 2019
    • Tata capital Home Loan
      "Interest should be economy"
      0.5 4.0/5 "Great!"
      My first home loan with Tata Capital that experience was good but the interest is higher side. I took the loan amount of Rs.10 lakhs for ten years of duration. They do have balance transfer, part payment, foreclosure option. They give me emi loan reminder before the due date.
      Was this review helpful? 1
      , hyderabad
      Reviewed on May 02, 2019
    • HDFC Limited Home Loan
      "Good Experience"
      0.5 4.0/5 "Great!"
      I had housing loan with HDFC Limited, the process was good on time they have complete and worked and disbursed the amount. I took Rs. 16 lakhs for the duration of 20 years. They do have balance transfer, part payment, but the interest rate is higher side and its a floating one.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 30, 2019
    • HDFC Limited Home Loan
      "Hassle free experience"
      0.5 4.0/5 "Great!"
      From my side the documentation got delay hence its got completed within a month. The interest was almost similar as 8.85% for the loan 20 lakhs for 20 years. They do have part payment and balance transfer, there was no issue as of now. EMi auto deduction is happening on monthly basis.
      Was this review helpful? 0
      , bangalore
      Reviewed on Apr 29, 2019
    • HDFC Limited Home Loan
      "Documentation should be faster"
      0.5 4.5/5 "Excellent!"
      The final Home loan documentation got delayed with HDFC Limited, the duration should be reduced. I took the loan amount of Rs. 20 lakhs for the duration of 10 years and they do have balance transfer and part payment and foreclosure option. The current interest rate is around 8.5% its floating one its fine for me.
      Was this review helpful? 0
      , delhi
      Reviewed on Apr 29, 2019
    • HDFC Limited Home Loan
      "Overall no hassles"
      0.5 4.0/5 "Great!"
      It was a good experience with HDFC Ltd for the home loan. I got the loan a bit late, it took 40 to 45 days due some documents. Since it was a Balance transfer. The rate of interest was of 8.8% floating and the processing fee was around 11K which was adjusted in emi.
      Was this review helpful? 0
      , delhi
      Reviewed on Apr 29, 2019
    • Indiabulls Home Loan
      "fluctuation of interest rate"
      0.5 3.5/5 "Pretty good"
      I did a balance transfer from India bulls mainly for the fluctuation of interest rate without any prior information . At the same time they stopped funding in recent times . I considered these things and it will not workout for a longer tenure period .
      Was this review helpful? 0
      , delhi
      Reviewed on Apr 29, 2019
    • DHFL Home Loan
      "Increase in interest rate for every three months"
      0.5 3.0/5 "Satisfactory"
      In DHFL , I taken a home loan few years ago . Every three months they increase the interest rate for the housing loan . This is something very difficult for me to pay EMI for many more years . I thought , I was caught in the DHFL trap .After that I closed this loan and did a balance transfer .
      Was this review helpful? 1
      , hyderabad
      Reviewed on Apr 29, 2019
    • Axis Bank Home Loan
      "AVERAGE"
      0.5 2.0/5 "Expected more"
      I have previously applied for the home loan with the AXIS BANK and i am not satisfied with the device with this bank, because they have offered with the higher rate of interest so i have done with the balance transfer from this bank. The documentation process was good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 27, 2019
    • ICICI Bank Home Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      I have done the balance transfer with the ICICI BANK where i have taken the home loan previously with the another bank. The banking process was simple and easy to use. They have given the rate of Internet which was nominal than others. The service is good.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Apr 27, 2019
    • SBI Home Loan
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      In SBI interest is minimal compared to other, the communication is clear and easy to transfer the home loan without any hidden charges. I took the loan amount of Rs. 30 lakhs for the duration of 10 days. I done physical documents in one slot I got the loan amount.
      Was this review helpful? 1
      , bangalore
      Reviewed on Apr 27, 2019
    • LIC Housing Home Loan
      "Below average"
      0.5 2.0/5 "Expected more"
      I took a home loan in LIC housing Finance but am not satisfied with the interest rate. I have done a balance transfer and completed the loan before couple of months. The customer service is average. The loan process are faster and the processing fee was very high and even they charged for foreclosure which am not satisfied.
      Was this review helpful? 4
      , hyderabad
      Reviewed on Apr 25, 2019
    • ICICI Bank Home Loan
      "Average Service"
      0.5 3.0/5 "Satisfactory"
      I had done a balance transfer to ICICI BANK since i was looking for a lesser interest rate, the process had been simple and did not took much time. The interest rate was nominal but they had made some charges for the insurance without an intimation, the customer support response with them has also not been that good where the response has to get improved.
      Was this review helpful? 1
      , bangalore
      Reviewed on Apr 24, 2019
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