Home Loan Balance Transfer Calculator

When a balance transfer makes sense

A home loan balance transfer means a new lender pays off your existing loan and you continue repaying them instead, at a lower rate. Because home loans run for many years, even a small rate difference can save a large amount. The catch is the one-time switching cost, so the real question is whether the savings clearly outweigh it.

Worked example

Rules of thumb

• A gap of 0.5% or more with 10+ years left usually justifies switching.
• With fewer than five years left, most of your interest has already been paid, so the saving is small.
• Look at the new lender's spread over the repo rate, not just today's rate. A low teaser spread that resets higher later cancels the benefit.

Try your current bank first

Many banks will reprice your loan to their current rate for a small conversion fee, often far cheaper than a full transfer and without new paperwork. Call them with the competing offer in hand. If they won't match it, switching becomes the clear choice.

Switching also takes time: expect 2–4 weeks for valuation, legal checks and collecting your property documents from the old lender. Use the savings well; prepaying with the lower EMI difference compounds the benefit (see the loan prepayment calculator).

Documents you'll need

The new lender will usually ask for your loan account statement, a list of property documents held by the current bank, the sanction letter, salary slips or income tax returns, and KYC. Request the foreclosure letter and document list from your current bank early, as it's often the slowest step.

Frequently asked questions