Home Loan Balance Transfer — Save Lakhs on Interest in 2026
CardKhoj Editorial Team 12 min read28 March 2026
Financial Disclaimer
Disclaimer: This information is for educational purposes only. Always consult a certified financial advisor before making any financial decision.
Why Transfer Your Home Loan?
If your current home loan rate is higher than what other banks offer, a balance transfer lets you move your outstanding principal to a new bank at a lower rate. With rates varying by 0.5-1.5% across banks, the savings can be ₹5-15 Lakhs over your remaining tenure.
Balance Transfer Savings Calculator
| Outstanding | Current Rate | New Rate | Remaining Tenure | Savings |
|---|---|---|---|---|
| ₹40L | 9.5% | 8.5% | 15 yrs | ₹4.8L |
| ₹60L | 9.5% | 8.5% | 20 yrs | ₹9.2L |
| ₹80L | 9.5% | 8.5% | 25 yrs | ₹15.4L |
Step-by-Step Process
1️⃣ Check current outstanding and rate. 2️⃣ Get quotes from 3-4 banks. 3️⃣ Factor in processing fee (0.5-1%) and legal charges. 4️⃣ Apply to new bank with property documents. 5️⃣ New bank pays off old loan directly. ⚠️ Transfer is worth it only if you save more than the total switching cost.