Banks and non-banking financial companies such as Bajaj Finserv make it very simple for borrowers to change their home loan lender. Contrary to popular belief, home loan balance transfer to another lender is an easy process, and borrowers can take advantage of the best possible choice in home loan interest rates by following a simple three-step process.
Note Down the Requirements
Those who want to initiate a home loan transfer process should preferably start by noting down the products and services they require from the new lender. Among them, they may want to consider the following:
• Better customer service
• Improved flexibility for payment schemes and features for the loan product
• Lower home loan interest rates
• Better management of payments, personal budgeting, and savings
Before approaching different banks, it would be prudent to talk with the present lender, to see if they can offer a better deal. Getting the new offer in writing is advisable, as a written offer is helpful in negotiating with other lenders.
The home loan transfer process to a new lender almost always involves different fees, specifically regular administrative charges, the loan establishment fee, and the mortgage insurance of the new lender. If the present loan is a fixed rate one, the borrower may have to pay for an early exit.
Although a home loan balance transfer to a new lender involves extra fees, the cheaper home loan interest rate and a different home loan product will likely help to recover most of the initial cost within two to three year.
The borrower must ensure preparation of all supporting documents that the lender may require to facilitate a smooth passage for the home loan transfer process. These documents include proof of earnings, tax returns, and documents of the existing loans and expenses.
Also Read: How to Transfer Home Loan to another Person?