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Top 5 Hurdles in Getting Home Loan Balance Transfer
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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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Top 5 Hurdles in Getting Home Loan Balance Transfer
Transferring your home loan balance and switching to a new lender has several benefits. It enables you to enjoy a lower interest rate and reduce your interest burden as well as get a chance to adjust the monthly EMI. But when it comes to availing this facility, you could face some challenges. To successfully switch lenders and transfer the outstanding amount, here are the top 5 hurdles that you should know about.
As you are transferring your home loan from one lender to another, the new lender shall consider your loan application to be a fresh one. Therefore, you will have to again pay the processing fees to the new lender, regardless of it being paid to the existing lender previously. It is advised to estimate the additional charges to understand the overall benefit of opting for a home loan balance transfer. Though the perks of lower interest rates would lead to savings in the future, you can reconsider the transfer in case of high charges.
Before applying for a home loan balance transfer, you must take your credit history into account. If you have missed any EMIs or your credit score has dropped since the time you availed the home loan, this can be a red flag. So, instead of getting your application rejected, review your credit report, as a poor credit score can become a hurdle in getting your home loan balance transferred. For a successful loan application, you can take a look at the lender’s eligibility criteria to check if you are eligible. You can also use an EMI calculator to check your eligibility and calculate EMI amount. .
Transferring your home loan balance is almost like getting a new home loan approved. You will need to do some research on the available lenders and the prevalent interest rates, get clearance from your existing lender, complete the paperwork, produce a new set of documents, etc. This can be a lengthy process and shall take up your time. But if you want to reap the benefits of a lower interest rate then you will have to put aside some time to complete the loan transfer procedure.
If you want to opt for a home loan balance transfer, then you must first get a No Objection Certificate or a NOC from your existing lender. When you transfer a home loan with a different lender, the existing lender loses a customer. Therefore, there are chances you may face some challenges while getting a No Objection Certificate. It can lead to a delay in getting your balance transfer procedure started.
In case the value of your home has decreased over time, then you could face issues while transferring your home loan. The new lender shall consider various aspects before approving the loan transfer to mitigate any possible risks. Such factors will include the current property value, or any legal complications associated with your home.
A home loan balance transfer offers numerous benefits to a borrower in the long term. However, in order to be better prepared while filing the transfer application, keep the above-mentioned obstacles in mind. Get easy home loan balance transfer at lower interest rates with Kotak Mahindra Bank, today.
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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