During a home loan balance transfer borrowers foreclose their existing loan with the current lender to avail a new one from another lender.
Each lender can have different requirements during a home loan balance transfer. Here are some standard documents that are required during the same.
Consent letter - The current lender issues a consent letter after approving the balance transfer.
No objection certificate - Home loan transfer process can be initiated only when the current lender has issued a NOC stating that the outstanding amount has been paid off.
Foreclosure letter - After the loan amount has been repaid in full by the new lender, the existing financial institution shall issue a letter of foreclosure. It states that specific date on which the loan has been foreclosed and no credit amount is due.
Statement for the home loan - This is a record of the outstanding credit amount and debt payment history of the home loan.
Property documents - Borrowers should present all property-related documents to the existing lender. These can include the original copy of the deed of sale of the property, tax payment receipts, and document stating an estimate of the cost required for the construction of the said property.
In addition to the above documents, a financial institution may also ask for other documents. These can include the borrower’s KYC documents (Voter’s ID card, Aadhaar, PAN card, Driving License, etc.), IT returns, all records from the existing lender, etc.
Having all these documents at hand can provide a hassle-free experience for the borrowers applying for a balance transfer.
