When Does a Home Loan Balance Transfer Make Sense?

A balance transfer moves your outstanding home loan to a new lender offering a lower rate. It can save a lot, but only when the maths works in your favour.

Look at the rate gap

As a rule of thumb, a transfer is worth considering when the new rate is at least 0.5% lower and you still have a long tenure left, that's when interest savings outweigh the switching costs.

Factor in the costs

• ✓ Processing fee on the new loan
• ✓ Any legal / valuation charges
• ✓ Time and paperwork of switching

Consider a top-up

Many borrowers pair a balance transfer with a top-up loan for renovation or other needs, often at home-loan rates far cheaper than a personal loan.

Timing matters

The earlier in your tenure you transfer, the more you save, because the interest portion of your EMI is highest in the early years.

Our take: we'll run the break-even calculation across our partner banks and tell you honestly whether a transfer is worth it for your specific loan.