What is a Home Loan Balance Transfer?
A Home Loan Balance Transfer allows you to move your existing loan balance to a new lender. If you have an existing Home Loan, you can use the balance transfer facility to enjoy a more competitive interest rate and better repayment terms.
Apply for a Home Loan Balance Transfer with Bajaj Housing Finance to get interest rates starting as low as 8.70%* p.a. for salaried applicants. In addition, you can also avail of a sizeable Top-up Loan and benefit from prompt customer service. The Top-up Loan can be used to finance any housing-related requirements.
We offer simple eligibility criteria and minimal documentation to make it easy for you to transfer your Home Loan balance.
Features and Benefits of a Home Loan
Sizeable Top-up Amount
When you transfer the balance on your existing Home Loan to MortBuzz Home Loan Solution you have the option to avail of a sizeable Top-up Loan, which you are free to use for any housing needs you may have.
Part-Prepayment and Foreclosure Facility
Individuals with a housing loan on a floating interest rate face no prepayment or foreclosure charges should they choose to pay off their loan before the end of their tenor.
Flexible Repayment Tenor
MortBuzz Home Loan Solution offers applicants the choice of a long repayment tenor to ensure comfortable repayment.
Minimal Documentation
A Home Loan application can get lengthy and tedious. To make sure that applicants get the quickest and easiest route to their dream home, we keep our documentation requirements minimal.
Online Account Management
Our customer portal allows you to access the details of your Home Loan with MortBuzz Home Loan Solution Finance anytime.
Online Home Loan Calculators
Before opting for a loan, you need to calculate your Home Loan EMI, eligibility, and other details. For this, we offer tools like the Home Loan EMI Calculator.
Calculate Your Home Loan EMI
(Principal + Interest)
Benefits of a Housing Loan Balance Transfer
There are various benefits of transferring a Home Loan.
- Lower Interest Rates: One of the main benefits of Home Loan Balance Transfer is the chance to avail of a lower interest rate as compared to the existing interest rate on your Home Loan. This can help you save more during repayment, making your EMIs easier to manage. This can also allow you to pay off the loan sooner.
- Availability of a Top-up Loan: You can also get a Top-up Loan when availing of a Home Loan Balance Transfer. This loan is one that is taken over and above your existing Home Loan amount and comes with flexible end-use. You can utilise it to meet a range of housing expenses. It comes with long repayment tenor and a competitive rate of interest. Together, a Home Loan Balance Transfer and Top-up Home Loan can help you manage your home finances with ease.
- Renegotiation of Loan Terms: A Home Loan Balance Transfer helps you in renegotiating the terms of your Home Loan. This can help you manage your Home Loan better, more cost-effectively and conveniently.
- Better Customer Service and Facilities: You can also consider transferring your Home Loan to enjoy better customer service, be it online account management, digital processes, pre-approved offers for other financial services, and more. With Bajaj Housing Finance you can manage your loan account anytime and anywhere through our customer portal.
Eligibility Criteria for a Home Loan Balance Transfer
If you wish to transfer your existing Home Loan balance to MortBuzz Home Loan Solution for competitive interest rates and other benefits, the following are some of the eligibility criteria that you should meet:
For Salaried Individuals
- You should be an Indian citizen (NRIs included)
- You should be between 23 and 65 years** of age
- You should have a minimum of 3 years of work experience with a public/private sector company, or an MNC
For Self-Employed Individuals
- You should be an Indian citizen (resident only)
- You should be between 25 and 70 years** of age
- You should be able to showcase steady income from an enterprise with a minimum vintage of 5 years
**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile.
Note that the eligibility requirements are indicative and can include additional criteria.
Documents Required for a Home Loan Balance Transfer
The following documents*** are required to be submitted for a Home Loan Balance Transfer:
- KYC documents (identity and address proofs)
- Mandatory documents (PAN Card or Form 60)
- Photographs
- Income proof documents, Form 16 or latest salary slips (for salaried individuals) / ITR document and P&L statement of the last two years (for self-employed individuals)
- Previous six months’ bank account statements
- Business proof documents, with minimum a 5 years of continuity in the current business (for self-employed individuals only)
***Please note that the list of documents mentioned is indicative. During loan processing, additional documents may be needed. These requirements will be communicated to you accordingly.
Home Loan Interest Rates
MortBuzz Solution offers competitive rates starting from 8.50%* p.a. for salaried applicants.
Fees and Charges on a Housing Loan
To know about the applicable Home Loan fees and charges, refer to the tables below:
| Fee | Charge Applicable |
|---|---|
| Processing Fee | Up to 4% of the loan amount + GST as applicable |
| EMI Bounce Charges | Refer to the table provided below for the full break-up |
| Penal Charges | Click here to know about the penal charges |
Home Loan Interest Rates for Salaried and Self-Employed Individuals
Interest Rates for Salaried Applicants Salaried Floating Reference Rate: 15.55%*
Home Loan Interest Rate (Floating)
| Loan Type | Self-Employed Individuals |
|---|---|
| Home Loan | 8.50%* to 15.00%* |
| Home Loan (Balance Transfer) | 8.70%* to 15.00%* |
| Top-up Loan | 9.80%* to 18.00%* |
Interest Rates for Self-Employed Applicants
| Loan Type | Effective ROI (p.a.) |
|---|---|
| Home Loan | 9.10%* to 15.00%* |
| Home Loan (Balance Transfer) | 9.50%* to 15.00% |
| Top-up Loan | 10.00%* to 18.00%* |
Other Fees and Charges
| Fee | Charge Applicable |
|---|---|
| Processing Fee | Up to 4% of the loan amount + GST as applicable |
| EMI Bounce Charges | Refer to the table provided below for the full break-up |
| Penal Charges | Click here to know about the penal charges |
EMI Bounce Charges
| Loan Amount | Charges |
|---|---|
| Up to Rs.15 Lakh | Rs.500 |
| More than Rs.15 Lakh and up to Rs.30 Lakh | Rs.500 |
| More than Rs.30 Lakh and up to Rs.50 Lakh | Rs.1,000 |
| More than Rs.50 Lakh and up to Rs.1 Crore | Rs.1,000 |
| More than Rs.1 Crore and up to Rs.5 Crore | Rs.3,000 |
| More than Rs.5 Crore and up to Rs.10 Crore | Rs.3,000 |
| More than Rs.10 Crore | Rs.10,000 |
Prepayment and Foreclosure Charge
For individual and non-individual borrowers with floating interest rate loans for non-business purposes:
| Borrower Type: Individual | Term Loan | Flexi Term Loan |
|---|---|---|
| Foreclosure Charges | Nil | Nil |
| Part-Prepayment Charges | Nil | Nil |
| Borrower Type: Non-Individual | Term Loan | Flexi Term Loan |
|---|---|---|
| Foreclosure Charge | 4%* on Principal Outstanding | 4%* on the Sanctioned Amount during the Flexi Interest Only Loan Repayment Tenor; and 4%* on the available Flexi Loan Limit during the Flexi Term Loan Tenor |
| Part-Prepayment Charges | 2%* on the Part-Prepayment Amount | NIL |
*GST as applicable will be payable by the borrower in addition to the prepayment charges, if any.
**Nil for Home Loans closed by borrowers out of their own sources. Own sources refer to any source, other than borrowing from a bank/NBFC/HFC and/or a financial institution.\
Note: In the case of dual-rate Home Loans (fixed for the initial period and then floating), the foreclosure/part-prepayment charges will be applicable as per the status of the loan as on the foreclosure/part-prepayment date.
Purpose of Loan
- Lease Rental Discounting Loans
- Loans Against any Property availed for business purposes, i.e., working capital, debt consolidation, repayment of business loan, expansion of business, acquisition of business assets or any similar end usage of funds
- Loan for purchase of non-residential properties
- Loan against security of non-residential properties
- Top-up Loans for business purposes, i.e., working capital, debt consolidation, repayment of business loan, expansion of business, acquisition of business assets or any similar end usage of funds
Differences Between a Home Loan and Home Loan Balance Transfer
A Home Loan is a loan availed of in order to purchase a property. To increase your chances of getting approved for a Home Loan at favourable terms, you need to meet our Home Loan eligibility criteria and provide certain documentation.
A Home Loan Balance Transfer is a refinancing option that allows you to transfer your existing Home Loan balance for better loan terms. Additionally, you can also avail of a Top-up Loan with a balance transfer to fund other housing finances.
Even though a housing loan and a Home Loan Balance Transfer serve the same purpose of financing a property purchase, they still have a few differences. For instance, a housing loan requires property evaluation, and in this aspect, a balance transfer may be easier. But a housing loan balance transfer also requires you to submit all the required documents such as the address, age, and income proofs among others.
You can transfer your Home Loan for a more competitive Home Loan interest rate that can help you save more on your total interest outgo. However, the main aim of the initial Home Loan is to finance the purchase or renovation of a residential property.
When to Consider a Home Loan Balance Transfer?
Here are some scenarios where a Home Loan Balance Transfer can be beneficial:
-
A Lower Interest Rate:
Availing of a Home Loan Balance Transfer allows you the opportunity to negotiate a more favourable interest rate. -
Changed Repayment Tenor:
When you transfer your Home Loan balance, you can seek a shorter or longer repayment tenor, subject to eligibility. -
Need for Additional Funds:
When availing of a Home Loan Balance Transfer, you have the option to avail of additional finance through a Top-up Loan. This amount comes with end-use flexibility and can be used for any housing-related expense.
While a balance transfer offers several advantages, borrowers should calculate potential savings and consider all involved costs.
*Terms and conditions apply.
Home Loan Transfer FAQs
A Home Loan Balance Transfer is when you transfer an existing Home Loan from one lender to another. The feature helps you obtain lower interest rates, more pocket-friendly terms, and even a Top-up Loan for other housing expenses such as home renovation.
Yes, a Home Loan Balance Transfer is a good idea, when you can avail of a new Home Loan at better interest rates than your existing loan. This helps you save on total interest outgo. Refinancing a Home Loan with MortBuzz Home Loan Solution offers you several benefits, such as a Top-up Loan, low interest rates, and long repayment tenor.
While it is possible to use the Home Loan Balance Transfer facility multiple times, paying the processing fee multiple times may not make it a feasible option.