What is the easiest way to transfer my Home Loan to a lower interest rate?
August 24, 2021
Once you are sanctioned a Home Loan, it is a moment of pride and a feeling of great achievement; of realising an ambition that is cherished by many. A dream house that will offer a sense of security and homeliness. But a Home Loan is also a huge financial responsibility and any opportunity to save your hard-earned money, must be grabbed, quickly.
One way to save on your Home Loan interest is through a Home Loan Balance Transfer. A Home Loan Balance Transfer is a process by which you can transfer your Home Loan from your existing lender, to a new lender. But why go through the inconvenience of transferring your loan? The best reason can be attributed to a lower interest rate on your Home Loan. A major chunk of your Home Loan repayment amount constitutes the interest, and if the rate of interest is reduced, you end up saving a lot of your interest outgo. Thus, if there are other lenders willing to offer a Home Loan at a low interest, then it is imperative that you consider transferring your Home Loan.
What is the process to easily transfer your Home Loan?
Let us look at the process of a Home Loan Balance Transfer.
Step 1: Identifying a financial institution
To initiate the balance transfer process, the first thing you need to do is identify a new lender, who is providing a Home Loan at a lower interest rate. Along with this, you also need to check the other services or benefits you could gain, once you make a switch. For instance, if you choose to do a Home Loan Balance Transfer with ICICI Bank, you have the option to avail a Top-up Loan, to meet unexpected expenses.
Step 2: Apply for the loan
After your existing lender processes your application for a Home Loan Balance Transfer, you can proceed for a Home Loan application with the new lender. Borrowers can initiate the Home Loan Balance Transfer process through an offline or online mode.
Step 3: Submit Documents to the new lender
These include your basic KYC documents, list of documents from the existing lender, property documents, Loan Balance Statements and Interest Statements, along with a filled application form. You need to submit these documents to the new lender.
Step 4: Closure of an existing loan
Once you’ve started the process with your new lender, wait for the final confirmation of the closure of your Loan Account from your old lender. The final confirmation signifies that your loan contract has officially ended, along with any terms related to it.
Step 5: New loan agreement with the new lender
After the closure of the loan, you can sign a new loan agreement with the new lender. While you do this, it is essential to go through the loan transfer agreement details, to be aware of key information and charges associated with it.
In this way, you can easily go for a Home Loan Balance Transfer; with ICICI Bank’s lower housing loan interest rates, you can easily transfer your existing Home Loan by applying for a transfer, online.
Terms and Conditions apply.
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