5 things to keep track of when you do a home loan balance transfer

2. Get a NOC from your old lender

Before you go ahead with transferring your existing home loan to new lender, it is important to get a NOC from the former. Getting this certificate signifies that you are transferring the balance without the objection of your old lender and increases the chance of the transfer being approved.

3. Make sure you qualify the eligibility criteria

The approval of your balance transfer depends on how well you match the eligibility criteria of the lender. Each lender would have different criteria. Hence, it is important to know the same and provide all the relevant documentation.

Additional Read : Factors That Impact Your Home Loan Interest Rate

4. Be aware of the application procedure and other fees and charges

When you perform a balance transfer,you need to go through an application process again. Be aware of the various modes of application and choose aprocedure that you are most comfortable with. It also helps to be aware of all the information and documentation that will be required. Besides this, keep track of the new fees and charges your new lender may levy.

This includes processing fees, secure fees, penal interest on non-payment of your EMI on time, and loan statement charges. Here, the part prepayment and foreclosure charges are most important. For instance, Bajaj Finserv doesn’t charge any prepayment charges if you as an individual borrower on a . It also doesn’t charge you any foreclosure charges if you are an individual on a floating rate.

Additional Read : 4 Ways To Pay Off Your Home Loan Faster

5. Ascertain that the transfer charges are low

Before you seek a transfer, enquire about the charges of the move. This helps you estimate the overall affordability of the decision. It also enables you to organise the finances to pay for the various charges. Going with a lender with low charges lets you save a considerable amount of money.
By doing your research and being aware of all the terms and conditions, you can go with the most affordable and beneficial offering. Remember that balance transfer is best done in the first few years of your home loan tenor, because this is the time you pay more towards the interest than the principal. Use a Home Loan balance transfer calculator to see what you stand to gain from the move.