Home Loan Balance Transfer Calculator

A home loan balance transfer means moving your existing home loan from one lender to another.

The new lender pays the amount you still owe your current lender, subject to approval and the new lender's terms.

It can be, but it depends on your current rate, new rate, loan balance, years left and switching costs.

For example, on ₹50 lakh with 15 years left, moving from 9% to 8% with a ₹25,000 switching cost could save about ₹5.03 lakh, and you would recover the cost in about 9 months.

Enter your own numbers above to see your saving.

There is no fixed rate difference that works for everyone.

A small rate reduction can still make a big difference on a large loan with many years left.

On a small loan with only a few years left, even a bigger rate reduction may not save much.

For example, a 0.5% lower rate on ₹50 lakh with 15 years left could save about ₹2.41 lakh after a ₹25,000 switching cost.

The same 0.5% on ₹5 lakh with 2 years left would cost about ₹22,250 more than staying.

It can.

If the new lender offers a lower rate and you keep a similar loan period, your EMI may fall.

Yes.

If you keep paying the same EMI after switching, you may finish the loan earlier.

In our example, keeping the EMI at ₹50,713 at 8% finishes the loan 1 year 6 months earlier.

Keeping the same EMI can help you finish the loan earlier and save more interest.

Reducing the EMI gives you more money available each month.

Compare both options before deciding.

Ask the new lender for its Key Facts Statement (KFS).

Lenders must give you this before you sign, and it lists all fees and charges.

If you don't have it yet, a typical estimate is a processing fee of about 0.5% plus 18% GST, and about ₹10,000 for legal and valuation charges.

On a ₹50 lakh loan, that comes to about ₹39,500.

Stamp duty or mortgage charges depend on your state and are extra.

Costs can include processing fees, GST, legal and valuation charges, stamp duty, mortgage-related charges and other lender fees.

Ask the new lender for the complete cost before switching.

Under RBI rules, lenders cannot charge foreclosure or prepayment fees on floating-rate home loans taken by individuals for personal use.

Fixed-rate and business-purpose loans can have different rules.

Check your loan agreement and confirm with your current lender.

Yes.

The new lender may consider your credit history, income, repayment record, existing loans, property and other factors before approving the transfer.

Some lenders offer a top-up loan along with a balance transfer.

The eligibility, interest rate and terms can vary.

This calculator focuses on the balance transfer itself.

You can apply, but it may not always be useful.

There may not be enough interest left to save after paying the switching costs.

For example, with 3 years left on ₹50 lakh, moving from 9% to 8% with a ₹25,000 switching cost would save about ₹58,405, far less than with 15 years left.

Not necessarily.

A lower EMI may simply mean a longer loan period.

Always compare the total interest and total saving, not just the EMI.

They are different options.

A balance transfer moves your loan to another lender, usually to get a lower rate.

A prepayment uses your own money to reduce your existing loan.

Compare both options based on your loan, available cash and financial goals.

The Home Loan Prepayment Calculator can help.