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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.

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    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 - Sitemap

    Home Loan Balance Transfer Reviews

    • LIC Housing Home Loan
      "Interest rate should be flexible"
      0.5 4.0/5 "Great!"
      LIC housing is providing good interest for home loan, but when govt reversed the rate of interest, I got higher percentage and they have taken some processing fee from the disbursement. But they didn't give any insurance. Anyway LIC housing has balance transfer, part payment and foreclosure option.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 18, 2019
    • Citibank Home Loan
      "Can do better"
      0.5 3.0/5 "Satisfactory"
      Ten years back I took home loan from Citi Bank at that time, the interest is higher and I done lots of documentation. CITI bank deal is not good, I done the foreclosure but I didn't pay any extra fee. They do have balance transfer, part and foreclosure options.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 18, 2019
    • SBI Home Loan
      "Good Experience for Housing loan"
      0.5 4.0/5 "Great!"
      SBI is best for the home loan, they come down to 9% of interest its good compared to private sectors. The documentation verification is very easy and very secured as well. Even the bank gave me balance transfer, pre closure, part closure options.
      Was this review helpful? 5
      , mumbai
      Reviewed on Jan 14, 2019
    • SBI Home Loan
      "Communication should be transparent"
      0.5 4.0/5 "Great!"
      SBI home loan experience is good, they gave me the least interest around 9.2% for the loan amount of Rs. 15 lakhs. The bank approved the tenure of 15 years they have part payment and balance transfer option. They hide some charges on insurance amount, they keep charging the fee around 6000 on yearly basis.
      Was this review helpful? 6
      , bangalore
      Reviewed on Jan 08, 2019
    • IOB Home Loan
      "Need improvement in all aspects"
      0.5 2.0/5 "Expected more"
      I done the balance transfer from IOB because of the service issue, they gave me the interest of 11% after a year they only came down to 10% but at the time all banks were issuing the interest around 8.5% on existing home loan, hence I switch over to Canara bank .
      Was this review helpful? 0
      , thiruvananthapuram
      Reviewed on Jan 05, 2019
    • review Home Loan
      "Bad experience"
      0.5 2.0/5 "Expected more"
      I had taken my home loan previously with GIC housing finance, they have charged me rate of interest too high, i feel they are charging highest rate of interest in India, they have charged me up to 11.50%, which too high, they have charged me processing fee or not i have no idea,as i have taken 4 years before this loan, and there is many hidden charges , now i have transfer to other bank.
      Was this review helpful? 3
      , mumbai
      Reviewed on Dec 27, 2018
    • Oriental Bank of Commerce Home Loan
      "Quick and satisfactory loan"
      0.5 5.0/5 "Blown Away!"
      I am having housing loan with Oriental Bank of India, before 4 years I took the loan at the time interest rate is good. The process is convenient. I didn't contact the bank to check about the balance transfer , part or pre closure payment, I just make the emi on monthly basis.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Dec 13, 2018
    • Tata capital Home Loan
      "Good housing loan "
      0.5 4.0/5 "Great!"
      In this housing loan they have given 10% as the rate of interest, its for 20 years tenor i have taken, documentation part mostly i have did it in the online itself which are all major documents but for signature in hard copy they came and collected from me, it was hassle free at the time of fund transfer.
      Was this review helpful? 2
      , ahmedabad
      Reviewed on Dec 11, 2018
    • review Home Loan
      "Online feature should be improved"
      0.5 3.0/5 "Satisfactory"
      I have home loan with Canfin housing loan they gave me 9.25% I think its higher, I thought to do transfer but the outstanding is low hence I switch over to other bank. They do need improvement on online features for everything I need to the bank.
      Was this review helpful? 3
      , bangalore
      Reviewed on Dec 09, 2018
    • HDFC Limited Home Loan
      "Process should be quick"
      0.5 3.0/5 "Satisfactory"
      Comparatively it is good even the service is good, little bit got delay its good. HDFC Ltd gave me the best interest rate, they quoted me around 8.55% for the loan amount of Rs. 32 lakhs, they gave me pre part, balance transfer and preclosure options.
      Was this review helpful? 0
      , bangalore
      Reviewed on Dec 03, 2018
    • HDFC Limited Home Loan
      "Process should be quick"
      0.5 3.0/5 "Satisfactory"
      Comparatively it is good even the service is good, little bit got delay its good. HDFC Ltd gave me the best interest rate, they quoted me around 8.55% for the loan amount of Rs. 32 lakhs, they gave me pre part, balance transfer and preclosure options.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 03, 2018
    • Bank of India Home Loan
      "Customer Service should be improved"
      0.5 2.0/5 "Expected more"
      My spouse have housing loan in Bank of India , they added me as a co applicant, I have dissatisfied experience, the process was very delay and the response is not upto the mark. Again planning to do balance transfer from BOI to other bank. Interest rate and charges are fine in Bank of India because its a govt bank.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Nov 28, 2018
    • DHFL Home Loan
      "Average"
      0.5 2.0/5 "Expected more"
      I have taken a home loan with DHFL in the year of 2009. After 2 years, they have increased the rate of interest around 15%. Then I have decided to transfer the loan from DHFL to others. My colleague said IDBI is giving an offer so I have transferred the loan. They are charging 4% as preclosure charges on the outstanding premium.
      Was this review helpful? 2
      , bangalore
      Reviewed on Nov 24, 2018
    • HSBC Bank Home Loan
      "Good Financial service"
      0.5 5.0/5 "Blown Away!"
      I Have taken housing loan from Hsbc bank . Am satisfied with the rate of interest which they have offered is nominal one I make the payment through online transfer . There is no processing fess for the documentation and approval process.before taking loan they have explained the pre closure charges also.
      Was this review helpful? 1
      , pune
      Reviewed on Nov 04, 2018
    • LIC Housing Home Loan
      "Very worst after sales service & Interest rate is very high"
      0.5 1.5/5 "Bad"
      They were keep on increasing the interest rate and also they never contacted nor sent any information mail or message for the increase of the interest rate. When verified after 3-4 yrs they were charging the interest rate @ 11.5 percent which was very high compared to the market interest rate which was 8.3% for a housing loan. So immediately requested for a home loan transfer to HDFC.
      Was this review helpful? 10
      , hyderabad
      Reviewed on Sep 21, 2018
    • HDFC Limited Home Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      It is a excellent process with HDFC LTD. I have done a balance transfer for my home loan. The process is good and there are no issues in the experience. The rate of interest and processing charges is normal and that is the main reason I shifted to this institution.
      Was this review helpful? 1
      , secunderabad
      Reviewed on Sep 15, 2018
    • HDFC Limited Home Loan
      "Never go for HDFC Ltd. Reasons and details inside"
      0.5 0.5/5 "Unacceptable"
      Want to do a balance transfer to another bank. But hdfc is putting all road blocks to prevent me from moving out. I am totally frustrated with their attitude. Even while taking the loan they behaved as if I am begging with them for loan. Now I had requested for a fore closure letter and "list of documents" on 24th July. I have still not received as on today 1st Sept.
      Was this review helpful? 15
      , bangalore
      Reviewed on Sep 01, 2018
    • HSBC Bank Home Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I Have taken housing loan from Hsbc bank . In starting am satisfied with the rate of interest which they have offered of 8.5% after they have increased the rate of intersect by 2 times It took 6 month for the approval of the loan as they only approve based on proper documentation. I make the payment through on-line transfer . There is no processing fess for the documentation and approval process.
      Was this review helpful? 1
      , ahmedabad
      Reviewed on Aug 25, 2018
    • Bajaj Finserv Home Loan
      "Unhappy with the services"
      0.5 1.0/5 "Really Bad"
      I wanted to do a balance transfer with Bajaj Finserv for the home loan. Initially I was informed the necessary details and later in the process I was informed that those details are not available for me. So I did not go ahead with the loan experience.
      Was this review helpful? 7
      , chennai
      Reviewed on Aug 24, 2018
    • Tata capital Home Loan
      "Satisfied with the services"
      0.5 5.0/5 "Blown Away!"
      I now done a transfer of my home loan to Tata capital. The customer services and response is really good. The process was very much easy to get the loan and the after loan experience is fine too. The rate of interest and processing charges is also good.
      Was this review helpful? 7
      , bangalore
      Reviewed on Aug 18, 2018
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