Essential Documents You Must Keep Ready Before Transferring Your Home Loan in India!
If you are opting for a home loan balance transfer, then it is a smart financial move as it can help you save a lot of money on interest. When applying for a home loan balance transfer, however, it is crucial to have all the required documents in place so that there are no issues in the process. Here is a handy list of documents for a home loan transfer to help you out:
- Consent letter
To get the process of the home loan balance transfer started, you will need to submit a written application to your existing home loan lender. This is to notify them of the home loan refinance and to request a consent letter.
- KYC documents
You need to submit KYC documents for identity and address proof. These include your Aadhaar, PAN, voter’s ID, passport, driving license, etc.
- Income proof
If you are a salaried employee, you can submit your bank statements for the last six months, the latest salary slips, and form 16. If you are a self-employed individual, then along with your bank statements, you will need to submit documents for proof of business along with tax returns.
- No Objection Certificate (NOC)
You need to receive an NOC from your current lender. This is an important home loan transfer document as it states that your existing lender does not have an issue in transferring the outstanding loan to the new lender.
- Home loan statement
Along with the NOC, another one of the important documents required for a home loan balance transfer includes the home loan statement. This specifies your loan history and details all the EMIs paid.
- Foreclosure letter
Once the new lender has paid off your remaining loan to the old lender, you will be issued a foreclosure letter. This home loan balance transfer document is essential and is issued by your old lender. It states that the loan has been foreclosed and that there is no outstanding balance as of the applicable date.
- Property documents
All the property documents that you had submitted to your previous lender when applying for a home loan need to be collected from them and submitted to the new lender. These include the sale deed, NOC from the society or builder, occupancy certificate, etc.
You can refer to this list of documents for home loan transfer throughout the process so that you don’t miss out on anything. Another thing you should consider doing before you apply for home loan refinance is to use a home loan balance transfer calculator. A home loan balance transfer calculator will help you conduct a cost-benefit analysis to determine whether your interest savings will outweigh the cost of transferring your home loan. Once you have a clear idea of just how much money you will be saving by opting for home loan refinancing, you can confidently begin the process and start arranging all the necessary documents.