Latest Answer: The process of changing your home loan from one bank to another is called a Balance transfer. Before finalising on the new bank there are a few things that you may have to note
Rate of interest difference:
Is the new bank offering you a cheaper rate of interest? If it is then what is the difference? You have to be very clear about this to begin with
Tenor:
If you have taken a loan for 20 years previously are changing to a new bank after paying your loan in your current bank for 3 to 4 years then are you taking a fresh tenor of 16 years or are you again opting for a 20 year tenor? If so please remember you will pay a very high interest outflow for the first 2 to 3 years all over again. So you may have to decide on this factor as well
Top up:
If the home loan has been paid for more than 1 year then you can avail a top up basis the revaluation of the property, this top up will be available to you at the same rate as the home loan.
Documents transfer:
Once the loan is taken over to a new bank please remember to apply for a LOD ( List of documents) from the new bank and keep it in your procession, this is the proof of acknowledgement that the new bank has received all your original documents from the old bank)
Please also remember there are no foreclosure or pre closure charges and the current bank cannot charge you any of these charges for transferring your loan.
