A home loan balance transfer is a facility that most lenders and financial institutions offer today. With this facility, you can switch from one lender to another within the loan repayment tenure.
Borrowers mostly opt for home loan balance transfer when another lender offers them the same loan at a competitive interest rate. Furthermore, you can easily apply for home loan balance transfer online from the comfort of their home.
Apart from this, a home loan balance transfer has multiple other benefits.
Understanding the top 4 benefits of a home loan balance transfer
The top 4 benefits that home loan borrowers get when choosing a home loan balance transfer are mentioned below:
- Low rate of interest
Borrowers mostly choose balance transfer to get an affordable home loan balance transfer interest rate. A low interest rate reduces the borrower’s overall monthly EMI outflow.
Moreover, the interest payable amount also gets reduced. A lower interest rate can reduce the overall cost of the loan, thereby not leading to significant financial drain.
- Loan top-up facility
The top-up loan facility is an attractive advantage that comes with a home loan balance transfer. With this facility, you can borrow a certain amount of credit over and above your existing home loan.
Additionally, most lenders and financial institutions do not ask for extra documentation when availing of the loan-top-up facility.
- Flexible repayment tenure
Along with the benefit of an affordable or low home loan balance transfer interest rate, you can choose between a short repayment tenure and a long one. You can pay off dues faster with a shorter repayment tenure, whereas with a longer tenure, you get to pay lower EMIs.
Irrespective of your choice, a flexible tenure of up to 30 years is available under the home loan balance transfer facility.
- Online application
Nowadays, applying for a home loan balance is very easy as interested borrowers can apply for a home loan balance transfer online. During the initial application process, borrowers can do it via email.
Thereafter, for the final stage, borrowers can either physically be present to fulfil the registration formalities or request doorstep service to experience unmatched convenience.
In addition to this, you should also know how to apply for a home loan balance transfer online.
Steps to apply for home loan balance transfer online
Follow these 5 easy steps mentioned below to apply for an online home loan balance transfer:
Step 1: Provide all details as asked for, personal, professional, and financial details.
Step 2: Enter details of the existing property and the desired loan amount.
Step 3: In this step, you will get to see the amount of loan that you are eligible for.
Step 4: Submit paperwork of property loan.
Step 5: Pay the online fees through any of the online payment options.
After this, a representative from the creditor’s team will get in touch with you to proceed further with the submitted balance transfer application.
In addition, you should have detailed knowledge of the various documents required to get a hassle-free experience.
Documents required for home loan balance transfer online
The following list of documents are required when applying for a home loan balance transfer online:
- Official ID and address proofs.
- Bank statements of around 6 months.
- Salary slips of at least 3 months for salaried applicants.
- Business ownership paperwork for self-employed applicants.
In addition to these documents, you might also have to provide additional documents as and when demanded by the lender.
In a nutshell, the benefits of a home loan balance transfer are multi-fold. However, there are several crucial factors attached to it. Thus, you need to be well-informed and compare offerings across lenders before applying for a home loan balance transfer online.