Documents Required for Home Loan Balance Transfer

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07 JUNE, 2021

A home loan balance transfer is the process of transferring your existing home loan to another lender. By opting for the balance transfer facility, you can settle for a lender that offers a lower interest rate and better services. The process of a home loan balance transfer usually requires heavy documentation. Therefore, make sure that you keep all the necessary documents handy before applying for a home loan balance transfer.

Documents for Home Loan Balance Transfer

The essential documents required for home loan balance transfer are listed below:

PAN Card
Identity Proof such as Aadhaar Card or Driving License
Residence Proof in case of ownaed residence
Rent agreement if you are staying in a rented property
Income proof for salaried applicants: Salary slips for last three months, bank statements for last 6 months of salaried account, latest Form 16
Income proof for self-employed applicants: ITR for the last 2 years, balance sheet and profit, loss account with all annexures, last 6 months’ current account statement of the business entity and saving account statement
Latest Credit Card Bill or Electricity Bill
Loan payment track record
Property related documents

Make sure to check your eligibility using a home loan eligibility calculator before applying for a home loan balance transfer. Also, if you have already completed a significant portion of your home loan tenure, opting for a home loan balance transfer might not be prudent. This is because while transferring the outstanding home loan to a new lender, you will be required to pay the balance transfer processing fee and other charges. As a result of these charges, you may end up paying even more than you would save on interest payments. Hence, you must evaluate all the aspects of a home loan balance transfer before opting for it.

It’s advisable to calculate the total amount you would save on interest pay-out before opting for a home loan balance transfer. With Kotak Mahindra Bank, you can pay off any existing balance home loan at a lower rate of interest.

Some of the major benefits of home loan balance transfer with us are mentioned below:

Lower Interest Rates

You can pay off your outstanding loan amount at a comparatively lower interest rate. This can save a large amount in the long run and reduce the overall cost of borrowing. You can also customise your instalment plan to make home loan repayment easier.

Prepayment Facility

After transferring your home loan, you can also make use of the loan prepayment facility. Thus, your home loan can be foreclosed at your discretion with minimal prepayment charges.

Better Services

We offer efficient customer service and provide round-the-clock assistance. You can reach out to our representatives and get your queries resolved instantly.

The above-mentioned benefits of the balance transfer facility can make your home loan journey smooth and hassle-free. Make sure to inform your existing lender well in advance before seeking the transfer. Also, collect all documentation from the existing lender for a smooth home loan balance transfer to a new lender.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

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