Documents Required for Home Loan Refinancing

Individuals looking to avail a lower interest rate on their existing housing loan have the option of transferring the outstanding balance to a new lender. However, one needs to submit a few documents to initiate this home loan balance transfer process -

1. Consent letter 

An existing borrower needs to put in a written application to the current lender intimating about the balance transfer and issuance of consent letter for the same. 

2. No Objection Certificate

One has to obtain NOC from the present financial institution that indicates assent to transfer the outstanding loan amount to a new lender. 

3. Loan agreement

This agreement pertains to a sanction letter issued by the initial lender. 

4. Foreclosure letter

 It declares that the loan is foreclosed at a specific date without any outstanding balance. 

5. Post-dated cheques

To obtain a housing loan, borrowers have to submit post-dated cheques with the lender. These pending cheques are subsequently to be deposited with the new housing finance company. 

6. Property documents

Property documents are highly important for a home loan balance transfer. The entire set has to be submitted to the new financier.  

7. KYC documents

 The new financial institution would require these KYC documents –

• Identification proof 

• Aadhaar card 

• PAN card 

• Voter card 

• Driving license 

• Employment ID card issued by NREGA  

• Address proof

• Aadhaar card 

• Passport 

• Driving license 

• Voter ID 

8. Employment documents 

 These financial documents are essential for balance transfer –

• Latest salary slips 

• Previous six months' salary account statement 

• Form 16 from your present employer 

9. Property related documents 

For home loan transfer, the following set of documents are also required to verify the purchase of your property –

• No Objection Certificate from housing society or property developer 

• Property purchase documents 

• Registration certificate

• Stamp duty papers 

Depending on the new financial institution, further additional documents may have to be submitted for a home loan balance transfer, apart from your photograph and application form of the original lender. 

One should note that availing a top-up loan during balance transfer does not require borrowers to submit any additional documents.

Read Also: Important Things to Consider before Transferring Your Home Loan