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Should you transfer your home loan?

See your real break-even point and net savings after transfer costs — updated instantly as you type below.

Your current loan & the new offer

Updates instantly as you type — nothing is saved or sent anywhere.

₹

The remaining principal on your current home loan, not the original amount.

years

How many years are left on your current loan.

%
%

The rate you've been quoted for the transfer.

%

Typically 0.5%-1% of the outstanding amount — check your specific quote.

%

0% for floating-rate loans — RBI rules ban this charge. Only fixed-rate loans may still have one.

Enter your loan details to see if switching is worth it.

This is a general guideline, not financial advice. Please verify with a certified financial advisor and your bank before making decisions. Full disclaimer

What a balance transfer actually is

A home loan balance transfer means a new lender pays off your outstanding loan with your current bank, and you continue repaying the same amount to them instead — usually at a lower interest rate. The math only works in your favor if the interest you save over the remaining tenure is more than what the transfer itself costs you.

The most commonly missed fact

Most people assume their current bank will charge them a penalty to leave. For the vast majority of Indian home loans — floating-rate, held by individuals — that's no longer true, and hasn't been for a while. Don't let an assumed exit fee stop you from checking whether a transfer is actually worth it.

Before you commit

Ask your current lender if they'll match the new rate — a rate-reduction request with your existing bank is often free and faster than a full transfer, and gets you the same saving without any processing fee at all.

Frequently asked questions

Will my current bank charge me to close my loan early?

If your loan has a floating interest rate, no — RBI rules bar banks, NBFCs, and housing finance companies from charging any prepayment or foreclosure fee on floating-rate loans to individuals, regardless of whether you're paying it off with your own money or transferring it to another lender. This has applied since 2012, and RBI's Pre-payment Charges on Loans Directions, 2025 (effective 1 January 2026) closed remaining gaps and made it uniform across all regulated lenders. Fixed-rate loans aren't covered by this rule and may still have a charge — check your loan agreement. (Verified 2026-09-06.)

Is a lower interest rate always worth transferring for?

Not automatically — it depends on the new lender's processing fee, how much tenure you have left, and how big the rate gap actually is. A 0.25% difference on a loan with only 2-3 years left rarely breaks even; the same gap on 15+ years remaining usually does. Run your actual numbers above rather than assuming.

Does transferring reset my loan tenure?

Not unless you ask for it to. You can typically keep the same remaining tenure with the new lender (which maximizes interest savings) or extend it to lower your EMI further — extending adds back some interest cost, so it works against the pure savings calculation above.

What other costs come with a balance transfer besides the processing fee?

Possible extras include legal/technical valuation charges, stamp duty on the new loan agreement in some states, and mortgage re-registration costs. These vary by lender and state and aren't included in this calculator's processing-fee field — ask your new lender for a full cost breakdown before committing.