When does a balance transfer make sense?

Usually when the new rate is at least 0.5% lower and you have 10 or more years left. The longer the tenure, the more the lower rate saves.

What does a balance transfer cost?

Banks often charge about 0.25% to 1% of the loan as a processing fee. There may also be legal, valuation and stamp charges. Enter the total in the fee box.

Can I ask my current bank for a lower rate first?

Yes, ask them first. Many banks will cut the rate on request for a small switch fee, which is cheaper than moving.

Does a transfer reset my loan?

No. You can keep the same remaining tenure, as this calculator does. Taking a longer tenure lowers the EMI but increases interest.

Is a balance transfer worth it?

Moving your home loan to another bank at a lower rate can save lakhs in interest, but the move has costs. You pay a processing fee, and sometimes legal and valuation charges. This calculator weighs the saving against those fees. Enter your outstanding balance, the months left, your current rate, the new rate and the fee. You will see the new EMI and the interest you save after the fee. You also see how many months the saving takes to cover the fee. If break-even comes within a year or two and you have 10 or more years left, a transfer is worth a closer look. First, ask your current bank to cut your rate, which costs little or nothing. Results are estimates and exclude other charges.

New EMI

₹39,390

Current EMI ₹41,769

Interest saved after fees

₹4,08,293

Break-even

9 months

Outstanding balance

40 L

Remaining tenure

Current rate

New rate

Processing fee and charges

20,000

Common questions

When does a balance transfer make sense?: Usually when the new rate is at least 0.5% lower and you have 10 or more years left. The longer the tenure, the more the lower rate saves.
What does a balance transfer cost?: Banks often charge about 0.25% to 1% of the loan as a processing fee. There may also be legal, valuation and stamp charges. Enter the total in the fee box.
Can I ask my current bank for a lower rate first?: Yes, ask them first. Many banks will cut the rate on request for a small switch fee, which is cheaper than moving.
Does a transfer reset my loan?: No. You can keep the same remaining tenure, as this calculator does. Taking a longer tenure lowers the EMI but increases interest.