Home loan balance transfer: is it worth switching?
A lower rate only helps if it beats the cost of moving. Enter your numbers to see what you really save after fees, and how many months it takes to earn those fees back.
Net saving
Break-even
EMI now → new
Switching cost
Interest saved
Tenure now → new
Your gain after switching costs if you closed the loan in that month: lower EMIs paid so far plus the faster drop in your loan balance. Above ₹0 means you're ahead.
Switching cuts your rate. Prepaying cuts your loan. ₹5,000 extra a month on a ₹50 L home loan saves about ₹13.9 L and 4½ years of EMIs. The EMI-Free Date Planner tells you which of your loans to close first, and your exact EMI-free month.
See the planner · ₹199A banker's notes before you switch
- Ask your own bank first. Most lenders will reset your rate for a small conversion fee to stop you leaving. It's often cheaper than a full transfer, with no new paperwork.
- Break-even matters more than total saving. If you might sell the house or prepay within a few years, check that you'll pass the break-even month before then.
- Floating-rate home loans for individuals carry no foreclosure charge under RBI rules. Fixed-rate or business-purpose loans may — add it to "Other charges".
- Compare the spread, not just the rate. A teaser rate that resets after a year can wipe out the saving. Ask how the rate is linked to the repo rate.