List of Documents for Home Loan Transfer

The list of documents required for home loan transfer depends on the bank or institution you will be transferring to, along with factors such as a lower interest rate, better service, or longer repayment terms. It is always better to have those documents ready before starting the process, as it will facilitate a quick and smooth loan transfer.

In this blog, you shall be guided through the exact documents needed for a home loan transfer. Let us explore the documents, why each one is essential, and how to prepare them.

What Is a Home Loan Balance Transfer?

The transfer of a home loan means moving your existing home loan from your present lender to a new lender. The transaction may be considered attractive if the new bank offers lower interest or better terms for the loan. At the client’s request, the new lender pays off the existing loan on their behalf. The client then starts repaying the new loan under more favourable terms.

List of Documents for Home Loan Balance Transfer

Before you decide to shift your home loan from one bank to another, there needs to be a clear list of documents for home loan transfer. These documents ease the process of the home loan procedure. 

List of Documents You Will Need from Your Existing Lender

Here is the complete home loan balance transfer documents list.

• Letter of consent: A written request submitted to the lender to notify them of the borrower’s intention to transfer the home loan. The lender, in turn, issues a consent letter acknowledging the request.
• No Objection Certificate: A No Objection Certificate (NOC) is a document encoding an existing lender's willing consent to the transfer of a home loan to another lender.
• Foreclosure Letter: You will then obtain a foreclosure letter from the lender, stating that the home loan has been foreclosed on a certain date and that no amount was pending, after the new lender settles all the outstanding loan amount to the existing lender.
• Home Loan Statement: You should collect a home loan statement from your current lender. This document depicts your EMI repayment history and also shows the remaining loan balance.
• Property Documents: Your existing lender will return all property-related documents (sale deed, registration papers, or any other legal documents) that were deposited at the time of the housing loan.
• Post-Dated Cheques: When you took the loan, you may have deposited post-dated cheques along with the lender. Be sure to collect any unused cheques that are still with them.

Documents You Need to Submit to Your New Lender

1. KYC documents: Used as verification of Identity. Submit any one of the following:

• Voter ID
• Driving Licence
• Job card issued by NREGA
• Aadhaar Card
• PAN Card: only as an identity proof

2. Address Proof: This is to confirm your present residential address. Submit any one of the following:

• Passport
• Voter ID Card
• Driving Licence
• Aadhaar Card

3. Financial Documents: These documents show income and repayment capacity, and will require submission of:

• Form 16
• Latest salary slips
• Bank statements of your salary account for the last 6 months

4. Property-Related Documents: These prove purchase and ownership of your property. You must submit:

• Property purchase documents or ownership papers
• NOC from the developer/society
• Registration papers and proof of stamp duty payment

5. Documents of Your Existing Home Loan: Confirm details of your existing loan and agree that your old lender will consent to the transfer. These you will have to obtain from your existing lender and submit to your new one:

• Loan sanction letter/loan agreement
• Approvals from your existing lender (Consent Letter, NOC, Foreclosure Letter)
• Latest home loan statement

If you have all these documents ready and in order, your home loan balance transfer will be quick and smooth. Keep this checklist handy and start collecting the papers in advance to enjoy the benefits of better interest rates and improved loan terms.

Tips for a Smooth Transfer

• Start early: Your current bank may take some time to give you the home loan statement or NOC, so apply in advance.
• Clear copies: Submit clean and neat self-attested photocopies of your original documents.
• Keep documents organised: Arrange your papers in an orderly or category-wise manner.
• Check with the new lender: Always check with the new bank for the exact documents needed, as requirements may differ slightly.
• Compare prices: See the processing charge, foreclosure charges, and other expenses to make sure that the transfer will really save some money.

Wrapping-Up

Having the list of documents for home loan transfer ensures your application is processed without delay. Simply put, the home transfer documents list rightly in place can do time-saving for you and get you the full benefits from the balance transfer facility. It helps you stay organised and eliminates unnecessary hassle. 

My Mudra offers a comparison of various financial institutions that offer quick home loan balance transfer at lowest interest rates. You can check their requirements, list of documents, and more to make an informed decision.

Also Read:
- Lowest Home Loan Interest Rate for Balance Transfer in India
- How Much Home Loan Can I Get on 60000 Salary?