Buying a home is a huge financial decision as it requires a large amount of money. Due to the ever-increasing cost of real estate, purchasing a house through outright payment has become extremely difficult. This is where availing a home loan can prove to be extremely helpful. Home loans are secured loans, wherein the purchased home acts as a collateral. With the increase in financial institutions and online lenders, applying for a home loan has become comparatively easier in today’s time. Since home loans are long-term loans, you should always look for a financial institution that offers the most competitive interest rates. This will help you save a large amount of money in the long run.
However, you might have to settle for a home loan at a higher interest rate if you have a low credit score. But once you have worked towards the improvement of your credit score and enhanced it significantly, you have various options to reduce the rate of interest on your housing loan. The most effective option is to avail the facility of a Home Loan Balance Transfer. In order to reap the maximum benefits of the balance transfer, it is advisable to switch your home loan as early in the tenure as possible.
One important process that you would have to undergo while availing a Home Loan Balance Transfer is getting a No Objection Certificate (NOC) from your housing society. The NOC is required to ensure that you do not have any outstanding dues towards the housing society. Below is the process for obtaining the No Objection Certificate from the housing society.
- The loan-provider would provide you a format in which the NOC must be obtained from the society.
- Make sure that you have cleared all your dues towards the society before applying for the NOC.
- Apply for the NOC with the society in the given format. You would also be required to pay any charges mentioned in the guidelines.
- In case of any objections, the society shall inform you in writing,and you need to answer those objections categorically.
- If there are no objections raised, then the NOC shall be issued to you within a few days.
In order to avail the facility of Home Loan Balance Transfer, it is important that you get all your documents in place beforehand. This will help you avoid any inconvenience later on.
The are other factors too, that you should consider before availing a Home Loan Balance Transfer. Some of them are mentioned below:
- Check the number of EMIs remaining and calculate the interest that has to be repaid.
- Check if your existing loan-provider permits Home Loan Balance Transfer. If yes, are there any charges levied for the same?
- Check with your new lender regarding the charges levied in addition to the interest rate, such as processing the charge, legal and technical report expenses, etc.
- Lastly, do not forget to compare the total savings that you would be making by availing the Home Loan Balance Transfer.
Make sure that you read the terms and conditions of the loan agreement by your new lender before availing a home loan balance transfer.
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