Home Loan Balance Transfer Calculator (India)

Should you transfer your home loan to a cheaper lender? Break-even analysis accounting for processing fees, valuation, legal costs, and interest saved.

Inputs

100K100M
%
5%15%
%
5%15%
130
%
0%2%
0100K

Result

Net saving from balance transfer
₹397,293
  • Current EMI₹41,769
  • New EMI at 8.50%₹39,390
  • Monthly EMI saving₹2,379
  • Total interest saved over tenure₹428,293
  • Transfer cost (processing + legal + valuation)−₹31,000
  • Break-even periodHow long until interest savings recover the transfer cost14 months
  • VerdictRule: >₹1L net saving AND <24 month break-even✅ Transfer beneficial

How to use this calculator

  • Enter your current outstanding loan amount.
  • Enter current interest rate + new lender's offered rate.
  • Enter remaining tenure in years.
  • Enter processing fee % + legal/valuation costs.
  • Read net saving + break-even period + verdict.

About this tool

A home loan balance transfer moves your loan from one lender to another at a lower interest rate. Effective when the rate gap is significant (0.5%+) AND you have substantial tenure remaining. Transfer costs include: processing fee (0.3-0.5% of loan), property valuation (₹5-10K), legal opinion (₹5-10K), and MOD (Memorandum of Deposit) stamp duty (varies by state). Total transfer cost: ₹15K-₹40K typically. Break-even period must be less than ~24 months for the transfer to make sense. RBI mandates NO prepayment penalty on floating-rate home loans since 2012, making transfers fee-free from the departing lender's side.

Frequently asked

Three conditions: (a) rate gap of 0.5%+ (below this, savings usually don't justify effort), (b) at least 5+ years tenure remaining (more years to amortize the interest savings), (c) break-even period under 24 months. If all three are met, transfer. If any one fails, consider negotiating with current lender first.

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