Is switching your home loan to a lower rate worth it?
Compare your current loan with a new offer. See exact EMI reduction, total interest savings, and how quickly you recover the processing fee.
Net Savings
₹4,18,293
EMI drops by ₹2,379/month
Current EMI
₹41,769
New EMI
₹39,390
Transferring your loan saves ₹4,18,293 over the remaining tenure. The processing fee is recovered in 5 months.
What is Home Loan Balance Transfer?
Home loan balance transfer (also called refinancing) is the process of transferring your existing home loan from one bank to another at a lower interest rate. This can significantly reduce your EMI and total interest outgo. Most banks charge a processing fee (0.25-0.5% of loan amount) for balance transfers. The key is to ensure the interest savings exceed the transfer costs.
When Should You Transfer Your Home Loan?
- The interest rate difference is at least 0.5% or more
- You are still in the early years of your loan (more interest component remaining)
- Remaining tenure is at least 5+ years for meaningful savings
- Your credit score has improved since you took the loan
- The new bank offers additional benefits like top-up loan or better service
Frequently
Asked Questions
Common questions answered to help you make better property decisions.
Any questions? Reach out