Home Loan Balance Transfer in UAE

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Finding and obtaining the best home loan requires quite a lot of effort and research. Lack of proper research and expert guidance may have you end up taking a mortgage loan that is not entirely suitable according for your requirements. Switching your existing lender may be required. You can opt for a home loan balance transfer facility to transfer your home loan to another bank of your choice. Financial institutions in the UAE allow their borrowers to use the loan balance transfer facility if they want to make any alterations to the terms of their ongoing mortgage loan.

Home Loan Balance Transfer Calculator

The home loan balance transfer calculator is an online tool that estimates your savings after you transfer your home loan balance to another bank account. The home loan balance transfer calculators are available for free and can be utilized effortlessly. To use the home loan balance transfer calculator, visit the website of the bank from which you had your property financed. Enter the required details – loan amount, interest rate, loan tenure, and processing fee. Submit the values and obtain the desired result. 

Such calculators are efficient as the results are reliable and the accuracy level is significantly high. In addition, the entire process of calculation takes only a few seconds. 

How to Transfer Home Loan from One Bank to Another?

Here is the step-by-step guide on how to transfer home loan from one bank to another:

  • Step1- Visit the official website of the bank you wish to transfer the loan.
  • Step2- Go to the home loan section and read the terms and conditions related to balance transfer.
  • Step3- Opt for the balance transfer service.
  • Step4- Fill out all the required information, such as your name, type of property, details of your home loan, etc.
  • Step5- On the following page, you will be able to view all the loan offer-related details.
  • Steo6- Upload the essential documents and pay the fee.
  • Step7- Finally, submit the application.

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Points to Remember Before Transferring Home Loan Balance in the UAE

If you are considering using a home loan balance transfer facility, then here are some points you must keep in mind before taking action: 

  • Read all the terms and conditions of the home loan balance transfer facility of both the existing and new lender.
  • Make sure to keep all the required documents handy.
  • Get a letter of consent and documents stating your outstanding loan amount from your current lender.
  • Ensure to provide all the valid documents to the new bank so that it can perform the balance transfer activity with ease and pay the due balance to your old lender.
  • Once done, your previous home loan account will be closed and you will be required to make all your further payments to the new lender.
  • Finally, all the mortgage loan-related documents will be transferred to the new bank. 

What are the Eligibility Criteria for Home Loan Balance Transfer in the UAE? 

To know if you are eligible for the home loan balance transfer facility, check out the following criteria:

  • The applicant must be a UAE national or an ex-pat.
  • The age of the applicant must be at least 21 years.
  • The applicant must either be a salaried individual or self-employed.
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Benefits of Home Loan Balance Transfer Facilities

Read the following points to know the importance and advantages of using a home loan balance transfer facility: 

1. Lower interest rates

Even though the interest rates vary as per your borrower profile, banks offer comparatively lower interest rates for loan amounts transferred using the home loan balance transfer facility. Note that, your credit Score plays a crucial role in determining your interest rate. Thus, the better the credit score the lower the rate of interest you can receive. 

2. Better options for first-time borrowers

It is often hard to find the best home loan products for Individuals availing of a loan in the UAE for the first time due to a lack of understanding of research and comparison procedures. However, once they have a better understanding of home loan terms, they may wish to switch their current banks. Home loan balance transfer facilities can come in handy during such circumstances. Borrowers can choose a lender with better loan features and benefits and make a swift switch conveniently.

3. Alter your home loan

A home loan balance transfer is the best option when you plan to renegotiate your home loan terms, for example, decreasing or increasing your loan tenure, etc. You can choose to transfer your home loan to avail these features. 

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Home Loan Balance Transfer Factors to Look Out For

As discussed above, a home loan balance transfer is a wise option when you need to make changes to your existing home loan terms to save money. However, there are certain points you must take into consideration to figure out when is the right time to use the balance transfer facility and which features you need the most.

Below listed are the top factors to look out for before picking a bank for transferring a home loan balance in UAE:

1. Better Interest Rates

When planning for a home loan balance transfer, make sure to precisely check the interest rates offered by the new bank for balance transfer home loan debts. Always opt for a financial institution that provides a lower rate of interest to get the best deal. Selecting a bank with a lower interest rate will eventually save you money for monthly instalments. So, make sure that you draw proper comparisons and make the right choice.  

2. Flexible Loan Tenure

Look for a financial institution that allows you to select a loan tenure at your convenience. For instance, if you want to pay off your mortgage early, you can choose a lower loan tenure. Similarly, there is a possibility that you will be unable to pay off the loan quickly, opt for a longer tenure. By transferring your home loan balance, you will be able to select a loan tenure and adjust your monthly instalment amount as required.  

3. Property Authorisation

Before applying for a home loan balance transfer, ensure to get your property authorised by the new bank. Each financial institution has unique terms and conditions for home loan balance transfer in the UAE. Even if your current lender has agreed to the home loan transfer to another bank, it is essential to get consent from the new lender as well. Make sure all no objection certificates and related documents are in order. 

4. Transfer Loan Cautiously

Even when you have a valid reason for using the home loan balance transfer facility, ensure not to switch banks multiple times. As mentioned previously, every bank possesses a certain set of unique terms and conditions, including the cost of transferring balances to other banks and the maximum number of times you can transfer the loan balance. Conduct proper research and then choose a bank that meets all criteria – in terms of attractive loan terms as well as transfer fees.

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Differences Between Home Loan and Home Loan Balance Transfer

The following table briefly explains the differences between a generic mortgage loan and a home loan balance transfer:

Home Loan Home Loan Balance Transfer
A mortgage loan is a bit difficult to get approved from the lenders since it is a long-term loan and the lender has to allow huge chunks of funds for financing.  A home loan balance transfer is easily approved by banks since you have already cleared the stringent eligibility criteria of home loan approvals. 
The documentation process of home loans is rather lengthy.  Home loan balance transfer facility is quick and involves minimal documentation. 
Individuals may incur higher interest rates when availing of a mortgage loan. With a home loan balance transfer facility, borrowers get comparatively lower interest rates and better loan terms. 

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Q1. Is it difficult to get approval from the existing lender for a home loan balance transfer to another bank?

Ans: Almost all banks agree to home loan balance transfer easily and approve your application for the same. Make sure you submit the application with all required documents in place.

Q2. Under which circumstances is it better to opt for a home loan balance transfer?

Ans: You can apply for a home loan balance transfer when:

  1. You want to opt for a mortgage loan with low interest rates.
  2. You want to alter your loan tenure or other terms.
  3. You plan to consolidate debt.
Q3. How to transfer a home loan to another bank?

Ans: Visit the official website of your loan provider and navigate to the home loan section. Choose the balance transfer option. Go through all the terms and conditions of the balance transfer facility. View and confirm your existing loan-related details. Fill out the application form, add the required documents and complete the process.

Q4. Do home loan balance transfer facilities offer a better rate of interest?

Ans: Yes, you can get highly competitive low interest rates with home loan balance transfer facilities. However, the exact interest rate depends on your borrower profile.

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