The most common reasons for a home loan borrower to transfer the loan are
• Better rate of Interest: This is the primary reason for a borrower to opt for a balance transfer of its existing loan. With ‘NIL’ fore-closure charges on all home loans it is economically viable for a borrower to transfer the loan with little effort of completing the documentation.
• Top-up Loan: Second biggest reason for balance transfer is requirement of additional funds over and above the existing loan. With few banks offering Top-up loans at home loan rates, it becomes a very attractive option.
Documentation Required for Balance Transfer:
Apart from the list of documents mentioned under our documentation link, following additional documents are required in a BT case:
• List of documents mortgaged from current lender.
• Fore-closure letter from current lender.
• Statement of account from current lender.
• Complete set of property documents.