Home Loan Balance Transfer
Savings Calculator
Already have a home loan? Find out how much you could save by switching to a lower interest rate.
Try it yourself
What is a home loan balance transfer
Since the RBI mandates zero prepayment or foreclosure charges on floating-rate home loans for individual borrowers, there is no penalty from your existing lender for switching. The primary cost of transferring is the processing fee charged by the new lender — which is why the break-even calculation matters.
When a balance transfer makes sense
The definitive test is simple: if your remaining tenure is longer than the break-even period, the transfer saves you money. The break-even period is calculated as total switching cost divided by monthly EMI saving.
Before transferring, two things are worth confirming. First, obtain a foreclosure letter from your existing lender showing the exact outstanding principal — this is the figure the new lender uses for your new loan amount. Second, factor in all switching costs, not just the processing fee. Legal charges, technical valuation, and applicable stamp duty vary by lender and state and affect your actual break-even period.
Frequently asked questions
What is a home loan balance transfer?
A home loan balance transfer moves your outstanding loan from your current lender to a new lender at a lower interest rate. The new lender clears your outstanding dues, and you repay the loan to the new lender at the revised terms.
Are there any charges for transferring a home loan?
Your existing lender cannot charge a prepayment or foreclosure penalty on floating-rate home loans — this is mandated by the RBI for individual borrowers. The cost of transferring comes from the new lender’s processing fee, legal charges, technical valuation, and applicable stamp duty.
What is the break-even period in a balance transfer?
The break-even period is the number of months your monthly EMI saving takes to recover the total switching cost. It is calculated as total switching cost ÷ monthly saving. If your remaining tenure is longer than this period, the transfer saves you money overall.
How much rate difference justifies a balance transfer?
As a general guideline, a rate reduction of 0.50% or more on an outstanding balance of ₹30 lakh or above with at least 5 years remaining tends to produce meaningful savings after accounting for switching costs. Use the calculator above to check the numbers for your specific situation.
Will my new lender check my CIBIL score for a balance transfer?
Yes. A balance transfer is treated as a fresh loan application by the new lender. Your CIBIL score, income, and repayment history are all assessed. A strong repayment track record with your existing lender works in your favour.
Can I get a top-up loan with a balance transfer?
Yes, most lenders offer a top-up loan alongside a balance transfer, subject to your eligibility and the property’s current value. The top-up is disbursed at the same rate as the transferred home loan, making it more economical than a personal loan for borrowers who need additional funds.
How long does a balance transfer take?
The process typically takes 2–4 weeks from application to disbursal, depending on the new lender’s processing time and how quickly property legal and technical verification is completed.
Check if a balance transfer is right for you
PKVK Loans works with a wide network of banks and HFCs to help you compare suitable balance transfer options. No fee from you at any stage.