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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