Home loan is a long-term loan. It comes at a pre-decided rate of interest and other features. Undoubtedly, we all go in for the best terms and conditions when we start a home loan. But with changes in the economic environment and fluctuating market rates, the features, particularly the rate of interest can appear more rewarding than the one at which we are repaying our existing home loan. A home loan balance transfer is a process wherein the borrower can switch the unpaid principal balance of the existing home loan to another bank/financial institution that is offering lower interest rates and better features. This helps the borrower reduce his/her interest cost significantly.
Home loan is a huge investment. It involves huge principal amount, which attracts an interest charge, which is paid over a long period. Thus, every parameter requires close assessment and evaluation when considering the home loan offers available in the market.
More often than not everyone practices due diligence when availing a home loan. Therefore, not everyone considers Home Loan Balance Transfer to a new lender. However, there may emerge situations wherein a Home Loan Balance Transfer emerges as a lucrative proposition.
Here is list of reasons about who should consider a home loan balance transfer:
Wrong Product Selection: It' quite possible that a person selected a wrong home loan altogether. Limited information, wrong comparison, or biased opinion, there may be varied reason behind a wrong choice. However, it is not mandatory to go in with the same lender throughout the loan term. Home Loan Balance Transfer may be opted in such cases and the borrower can shift the outstanding home loan principal balance to a new lender.
Drop in Rate of Interest: When the interest rates in the economy fall, not every lender passes on the benefits to the borrower. As even a slight drop in the rate of interest can translate into huge saving for the borrower, the borrower can definitely opt for a home loan balance transfer in case not satisfied with the existing lender.
Unsatisfactory Services: There may be situations wherein the lender fails to keep up to the promises made initially. Any lapses in post-sale customer service can prompt a borrower to switch lender.
However, before taking a decision regarding the balance transfer one should consider the following:
Outstanding Term Period: The residual term period in an ongoing loan is very important when considering a home loan balance transfer. If the ongoing home loan is already nearing maturity, it is not advisable to consider a home loan balance transfer.
Amount of Difference: In case a major portion of the home loan is outstanding and a difference in rate of interest of more than 25 basis points is available from a different lender, only then one should consider a home loan balance transfer. In case even one of the two parameters is not prevalent, a home loan balance transfer cannot be justified.
Cost-Benefit Analysis: Before opting for a home loan balance transfer one should do a cost-benefit analysis. As the existing lender will charge a loan foreclosure fee/ prepayment charge and the new lender will charge a loan processing fee, one should consider a home loan balance transfer only if the switch appears lucrative in black and white.
Axis Bank Home Loan Balance Transfer appears to be a lucrative deal because of the following reasons:
By applying for an Axis Bank Home Loan Balance Transfer one can enjoy the following benefits:
To qualify for an Axis Bank Home Loan Balance Transfer, one should meet the following eligibility criteria.
|Proof of Identity (Any One)|
|Proof of Residence (Any One)|
|Date of Birth Proof|
|Income Proof||Salaried||Self Employed|
For NRI Salaried:
|For Home Loan Balance Transfer|
Once you select Axis Bank as your preferred lender for your outstanding home loan your home loan balance transfer process will be as follows:
Upon approval, Axis Bank treats a Home Loan Balance Transfer as a fresh loan. The fee applicable on each front is as follows:
|Type of Charge||Amount of Charge|
|Processing Fee||Up to 1% of the loan amount subject to a maximum of 10,000|
|Switching Fee (From Floating to Fixed Rate)||Up to 1% of the loan amount subject to a maximum of 10,000|
|Switching Fee (From Higher Floating to Lower Floating)||As per the offer applicable|
|Cheque Return Charges||500 per instance|
|Instrument Swap Charges||500 per instance|
|Duplicate Loan Statement Issuance Charges||250 per instance|
|Duplicate Amortization Schedule Issuance Charges||250 per instance|
|Prepayment fee for Fixed Rate Loan||2% of the amount prepaid|
|Prepayment fee for Floating Rate Loan||Nil|
For queries regarding the Axis Bank Home Loan Balance Transfer you can contact the bank's customer care helpline on the following numbers:
Axis Bank Home Loan Customer Care: Toll-Free Numbers - 1800 103 5577, 1800 209 5577
SMS Home to 5676782
You can visit the nearest bank branch. To learn about your nearest bank branch dealing in home loan balance transfer visit the website link https://branch.axisbank.com/?type=branches&_ga=2.235822855.745881778.1579582619-493427242.1565331448
You can also apply for an Axis Bank Home Loan Balance Transfer through MyMoneyMantra. Our representative will get in touch with you to process the Axis Bank loan application further.
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Kotak Mahindra bank has announced a special festival bonanza for fresh and balance transfer home loan customers. Both salaried as well as self-employed borrowers can apply for home loan refinancing at 6.50% p.a onwards. Kotak’s balance transfer festival scheme is open for all loan amounts for customers with good credit history. The last date to apply is Nov 8, 2021.
Co-owner of the property against which the loan is sought can be the co-applicant in an Axis Bank Home Loan Balance Transfer case. In case the property is not jointly owned, any immediate family member with independent income can become a co-applicant.
Axis Bank follows a pre-set eligibility criteria for its home loan balance transfer. The requirements are as under:
Axis Bank Home Loan Balance Transfer accepts home loan balance transfer applications from:
Axis Bank charges up to 1% of the loan amount subject to a maximum of 10,000 as processing charges for a Home Loan Balance Transfer application.
Axis Bank changes no prepayment fee on prepayment of home loan availed under the floating interest scheme. However, the bank charges 2% of the amount paid as prepayment charge in case the loan is availed on fixed rate of interest.
Axis Bank might not transfer the entire balance of the outstanding home loan. The principal amount approved by Axis Bank will depend upon the value of the property in question and the income eligibility conditions set by the bank.
After the applicant makes a clear and informed decision about getting his/her outstanding home loan transferred to Axis Bank, the process of applicant is as under:
Obtain NOC and Other Balance Transfer Documents: The lending institution will check the home loan account for any delays and defaults on the ongoing loan. Upon home loan closure the lender will issue a No Objection Certificate for your Home Loan Balance Transfer application.
Axis Bank allows home loan balance transfer to Non-Resident Indians. However, only salaried individuals are eligible for the same. The Non-Resident Salaried individuals will submit the following documents income proof documents for their home loan balance transfer approval.