Many people get home loans to buy their dream homes or build one. There is a chance that once you have brought your home loan, you found another which offers more benefits than the previous one. In such cases, many individuals get the home loan transferred.
Yes, it is possible to get your home loan transferred to another lender. However, there are some things that you need to consider and think about before you do so. Don’t worry; we are here to help you with just that. Below we have a list of tips that can help you transfer your home loan.
How can I transfer my home loan?
Before we begin with the tips that can help you safely transfer your home loan, it is crucial that you know about the steps of the process. So, below we have made the step-to-step guide on how you can transfer your home loan:
- The first thing that you need to do is make an application to your current lender. Inform that you wish to transfer the balance to some other lender via a form or letter. Make sure you carefully list out your reasons and explain them.
- After the lender has received your application, he will give you a NOC, No Objection Certificate, or a consent letter that you will need to give to your next lender.
- Once you have the NOC, contact your new lender and give them all the documents that are required for the process. There is also a chance that you will have to submit your property papers, loan, balance, and interest statements, along with your filled application.
- You will need to wait for the final confirmation from your old lender regarding the closure of your previous loan account. This is necessary as it certifies that the contract between you and your old lender has ended.
- The last step is to sign a contract with your new lender and pay the fees required. You can then start afresh!
Tips to transfer your home loan
Now that you know about the process, let’s move on to the tips that can help you safely transfer your home loan:
● Negotiate on lower interest rates:
Negotiation can take you a long way. Before you transfer your home loan from one lender to another, you should first negotiate with your existing lender for a lower interest rate. There is a possibility that your bank will consider lowering the home loan interest rates because of the prospective transfer.
● Check the credit rating:
Make sure you check your credit rating beforehand as it determines whether you are eligible for a balance transfer or not. Your credit rating depends upon several factors, such as your ability to pay credit on time. A poor credit rating indicates that you are less qualified for a bank transfer. Thus, you may not be allowed to transfer your home loan.
● Check the charges involved:
There are several charges involved in the process, as mentioned above. These include application fees, inspection fees, administration charges, etc. So, make sure that you consider all these charges and see if they cost more than the benefit you are getting. If these costs are greater, you shouldn’t go ahead with the transfer.
● Never skip the T&C:
Choosing a new lender is not an easy task. It is recommended that you always do a background check on the lender. Along with that, you should read all the terms and conditions put forward by them. Make sure you never skip these terms and conditions as they can lead to hidden charges many times.
● Go for recommendations:
While choosing a new lender, it is advised that you go for recommendations provided by your friends and family, as that is the safest option. Moreover, it is also advised that you do not transfer your loan if you are nearing your tenure or planning to sell your home in the future.
Conclusion
Now you know all about transferring your home loan. These tips will help you safely transfer your home loan and go for a lender who is trustworthy. Make sure you keep these points in mind while you are transferring your home loan, and you will be good to go.
That was all from our side. All the best for your transfer!
