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  • Home Loan Balance Transfer is Rated as "Pretty good" by 431 Users

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    Home Loan Balance Transfer

    "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 a loan in order to attain lower rates of interest. In case a bank or other financial institutions are unwilling to reduce the interest rates on a particular loan, it can always be refinanced with a help of another bank.

    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 a 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.

    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.

    • 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.

    What are the Rates for Home Loan Balance Transfer?

    Bank Lowest EMI Interest Rates
    LT Housing Finance Rs.870 for 30 Years 9.90% - 10.75%
    Vijaya Bank Rs.780 for 30 Years 8.65%
    Central Bank of India Rs.769 for 30 Years 8.50%
    Jammu And Kashmir Bank Rs.994 for 15 Years 8.65% - 9.00%
    Dhanlaxmi Bank Rs.972 for 20 Years 10.10% - 10.35%
    SBI Home Loan Rs.755 for 30 Years 8.30% - 8.50%
    HDFC Home Loan Rs.758 for 30 Years 8.35% - 8.95%
    Axis Bank Rs.758 for 30 Years 8.35%
    PNB Housing Finance Rs.776 for 30 Years 8.60%
    Bank of Baroda Rs.755 for 30 Years 8.30% - 9.30%
    LIC Housing Finance Rs.769 for 30 Years 8.50% - 8.90%
    Indiabulls Rs.758 for 30 Years 8.35% - 9.75%
    Citibank Rs.805 for 25 Years 8.50% - 8.60%
    DBS Bank Rs.874 for 20 Years 8.60% - 8.85%
    DHFL Rs.776 for 30 Years 8.60% - 9.75%
    Kotak Bank Rs.874 for 20 Years 8.60%
    Karur Vysya Bank Rs.846 for 25 Years 9.10%
    OBC Rs.802 for 25 Years 8.45% - 8.55%
    Karnataka Bank Rs.841 for 30 Years 9.50% - 9.75%
    Lakshmi Vilas Bank Rs.935 for 20 Years 9.55%
    Yes Bank Rs.863 for 25 Years 9.35% - 10.50%
    Standard Chartered Bank Rs.871 for 20 Years 8.55% - 8.65%
    Dena Bank Rs.809 for 25 Years 8.55% - 8.80%
    United Bank of India Rs.772 for 30 Years 8.55%
    Deutsche Bank Rs.929 for 20 Years 9.45%
    Edelweiss Rs.944 for 25 Years 10.50% - 10.90%
    IIFL Rs.769 for 30 Years 8.50%
    Reliance Capital Rs.878 for 30 Years 10.00% - 11.75%
    Indian Overseas Bank Rs.780 for 30 Years 8.65% - 9.15%
    Corporation Bank Rs.794 for 30 Years 8.85% - 9.10%
    PNB Rs.758 for 30 Years 8.35% - 8.45%
    City Union Bank Rs.1,069 for 15 Years 9.90% - 11.60%
    South Indian Bank Rs.812 for 30 Years 9.10%
    Bank of Maharashtra Rs.783 for 30 Years 8.70% - 8.80%
    Punjab and Sind Bank Rs.787 for 30 Years 8.75% - 9.00%
    RBL Bank Rs.930 for 25 Years 10.30% - 11.65%
    HSBC Bank Rs.815 for 25 Years 8.65%
    GIC Housing Finance Rs.982 for 20 Years 10.25%
    Indian Bank Rs.868 for 20 Years 8.50% - 8.60%
    DCB Bank Rs.997 for 20 Years 10.48% - 11.35%
    Federal Bank Rs.805 for 30 Years 9.00% - 9.25%
    Canara Bank Rs.780 for 30 Years 8.65% - 8.75%
    Union Bank of India Rs.755 for 30 Years 8.30% - 8.35%
    IDFC Bank Rs.772 for 30 Years 8.55% - 8.60%

     

    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.
    Steps for Home Loan Balance Transfer
    Home Loan Balance Transfer Process

    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. The success of any enterprise is in the documentation, right?

    • 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.

    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.
    Apply for Home Loan Online

    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.

    Home Loan Balance Transfer Reviews

    • Axis Bank Home Loan
      "It's a fraud bank"
      0.5 0.5/5 "Unacceptable"
      I have a home loan from axis bank. Be aware of these frauds from axis bank. What they commit and what do was totally different, And later bank refused to help. It was a balance transfer and they had committed that tenure will be 30 years with ROI 8.35 with certain top up amount. Later processed my loan for 20 year tenure while my loan in previous bank was for 30 year. Later they refused to disburse complete top amount and also increased ROI. When I contacted their customer care, there regional head nothing happened. They simply refused to help. Guys beware of these frauds.
      Was this review helpful? 0
      , indore
      Reviewed on Apr 04, 2018
    • DHFL Home Loan
      "Average"
      0.5 3.0/5 "Satisfactory"
      I earlier had my home loan with DHFL. The reason I done a balance transfer is because the rate of interest was very high and I requested them to reduce it. But they did not do it. The customer service is not proper as well. I need to go up the branch for every thing as they do not respond through telephone and online.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 27, 2018
    • Axis Bank Home Loan
      "Good. Can be more lesser in ROI"
      0.5 4.0/5 "Great!"
      I have taken my home loan from Axis Bank initially and there are no hassles for the approval. It was a pre approved loan and they always have offers for me. The rate of interest and processing charges are high. So I had to transfer the loan to another bank. The services and response is good overall.
      Was this review helpful? 0
      , bangalore
      Reviewed on Feb 17, 2018
    • Citibank Home Loan
      "Good Housing Loan with CITI"
      0.5 5.0/5 "Blown Away!"
      I got 8.25% of interest in CITI bank for the housing loan, its low when I compared with other banks. I got the approval loan amount of Rs.3 crores. Whatever amount I requested they processed on time. CITI has good repay options like art payment, balance transfer, fore closure option there are no charges after six months of EMI.
      Was this review helpful? 0
      , mumbai
      Reviewed on Feb 06, 2018
    • Punjab National Bank Home Loan
      "Good One"
      0.5 4.5/5 "Excellent!"
      I actually was looking for a transfer of my home loan . I cancelled the application from my side , actually I postponed my plan from my end . Customer service was good from the bank . All the required Information was given to me on time from their side . Over all it was a good with PNB housing finance .
      Was this review helpful? 0
      , jalandhar
      Reviewed on Dec 29, 2017
    • HDFC Limited Home Loan
      "Good One"
      0.5 2.5/5 "Just OK"
      I was looking for a loan transfer actually . the total amount was i should pay is the same amount so i did not opt for the loan process . The Customer service was good from the institution side . All the Information was given to me in a proper time and manner . I got a spot response from them in all.
      Was this review helpful? 0
      , pune
      Reviewed on Dec 29, 2017
    • YES Bank Home Loan
      "Best service"
      0.5 5.0/5 "Blown Away!"
      I have done a home loan transfer from Yes Bank and it was a very good loan experience. The loan amount was for Rs 5.5 lakhs with the rate of interest of 8.55% which is nominal when compared to all other banks. The process was quite long and it took 1.5 months for the process to be completed. I pay an EMI of Rs 6866 and the processing fees they charged is Rs 5900. Customer service was good and they collected documents through door step. The tenure of the loan is 10 years.
      Was this review helpful? 4
      , rajkot
      Reviewed on Dec 28, 2017
    • Axis Bank Home Loan
      "NOT HAPPY"
      0.5 2.0/5 "Expected more"
      It was a ok ok experience I had with AXIS Bank . actually the property was not on my name its was on my late fathers name so they told to transfer the property on my name and then come back to apply . They canceled application from my end . the customer service was ok ok but i expected a bit more better way .
      Was this review helpful? 0
      , mumbai
      Reviewed on Dec 27, 2017
    • Punjab National Bank Home Loan
      "Good One"
      0.5 4.5/5 "Excellent!"
      Actually i was looking for a loan transfer .The Customer service was good from the PNB HOUSING FINANCE . All the Information was given to me in a proper way .The rate of interest was also told . I canceled the application from my side . I got a better offer on the rate of interest in the same bank i was holding the loan with ,so i went on with that option . i can say it was a good experience with the PNB housing finance .
      Was this review helpful? 0
      , new delhi
      Reviewed on Dec 22, 2017
    • SBI Home Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have taken Home loan with State Bank of India.The loan amount is 22 lakhs,rate of interest is competitive.The tenure is for 20 years.They had deducted processing fees of 1% from the principle amount.The net banking is good to transfer funds and easy to operate.
      Was this review helpful? 4
      , kochi
      Reviewed on Dec 13, 2017
    • HDFC Limited Home Loan
      "GOOD"
      0.5 4.0/5 "Great!"
      it was a good experience with HDFC LTD for the home loan process . the customer service is good from their end . the money got disbursed in 10 days of time .The institution gave me a Full approval on the amount i asked for . the Rate of interest was 8.4% processing fee was 0 , this was the best part i liked about . It did not give me Pre closure part payment option . It was a loan transfer i did .
      Was this review helpful? 2
      , hyderabad
      Reviewed on Dec 01, 2017
    • HDFC Limited Home Loan
      "Needs to improve on Customer Service"
      0.5 2.0/5 "Expected more"
      I have applied for the home loan transfer from HDFC LTD, my loan application was closed because i have just inquired about the home loan transfer. When it comes to customer service, there was no interaction with them and also there was no response. The rate of interest was nominal when compared to other banks.
      Was this review helpful? 1
      , mumbai
      Reviewed on Nov 29, 2017
    • SBI Home Loan
      " Preferable Bank"
      0.5 5.0/5 "Blown Away!"
      I have two loans with SBI, they gave me good floating interest rate. Earlier one was been Rs. 35 lakhs, now I have taken Rs.65 lakhs. Tenure period of the loan is good, they do have balance transfer, part payment, Foreclosure. Their is a onling banking to view loan summary. They fulfill by buy dream home, there is no legal issue.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 24, 2017
    • HDFC Limited Home Loan
      "Balance transfer with HDFC"
      0.5 5.0/5 "Blown Away!"
      Actually, i had applied for a home loan with HDFC limited just for a balance transfer. After checking with the bank they told its only possible after paying 6 months EMI. Since the rate of interest with HDFC was low i thought of doing a balance transfer.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Nov 22, 2017
    • HDFC Limited Home Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      When I applied for a home loan with HDFC Limited they asked for the SF number which is not available with me. Even after I explained to them that I have a loan with federal bank for the same property around 8 years back so provide me a loan transfer alone as I don't need a fresh loan but they kept on insisting. When I enquired about the SF number with my area people they said that my entire area has the same SF number as the entire place was owned by the same person in the past so I could not avail even a loan transfer.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Nov 21, 2017
    • HDFC Limited Home Loan
      "Home loan with HDFC LTD"
      0.5 3.5/5 "Pretty good"
      The rate of interest with the institution was 8.25%. Even though i am ok with that. But for pre-closure there are some penalty and for balance transfer they are charging high. So i thought to go with my home bank itself. My first experience while taking the home loan earlier was fine with HDFC LTD.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 20, 2017
    • HDFC Limited Home Loan
      "Average"
      0.5 3.5/5 "Pretty good"
      I have taken my home loan with HDFC LTD. The process to get the loan was okay. The customer services and response is good and on time. The rate of interest is of 11.55% which is very high and the charges are also high. I am planning to do a balance transfer to another bank soon.
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 18, 2017
    • HDFC Limited Home Loan
      "Good customer service"
      0.5 4.0/5 "Great!"
      I have applied for the home loan from HDFC LTD, my loan application was closed because the home loan transfer was canceled. When it comes to customer service, it was good and i liked their way of response. The rate of interest is high when compared to all other sources in the market.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 13, 2017
    • Indiabulls Home Loan
      "VERY BAD EXPERIENCE WITH INDIA BULLS HOME LOAN DEPARTMENT "
      0.5 0.5/5 "Unacceptable"
      I have taken loan from Indiabulls last one and half years .i will suggest you to dont take loan from indiabulls .Because he has so many hidden policy they did not disclose at the time of loan take. They give us loan very soon but at the time of transfer they create a problem. I have taken follow up from customer care, bank manager and even I send mail to Mr. Gagan Banga -Vice Chairman & MD but yet not received any reply from him. I closed my loan then also ecs debited in my account. And they charge me extra 8000 as a interest. I ask for extra Rs.8000/- they give me answer as per our policy then i ask him to show your policy they said we cant show you the policy, it is management call. I am paid extra rs.8000 then also yet I donâ??t get my property paper. I got horrible experience from indiabulls. I request all of you be care at the time taking laon.
      Was this review helpful? 4
      , navi mumbai
      Reviewed on Nov 12, 2017
    • Indiabulls Home Loan
      "Good experience"
      0.5 3.0/5 "Satisfactory"
      I have approached INDIA BULLS for my home loan. The customer service and responses was not satisfactory since they have taken so much of time to approached me for my request. They have approve loan only for H1B approved flat but I was looking to transfer my existing loan here which website disappointing so I have cancelled the application.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 10, 2017
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