BALANCE TRANSFER 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.