Home Loan Balance Transfer Calculator
Enter your outstanding loan and the new offer to see if a balance transfer actually saves money after fees.
Runs entirely in your browser — your numbers never leave this page.
How it works
A balance transfer moves your home loan to a lender offering a lower rate. The math that decides it:
EMI = P × r × (1+r)n ÷ ((1+r)n − 1), compared for both rates, minus transfer fees.
- When it works: rate gap of 0.5% or more, with 5+ years remaining — savings compound over the long tail.
- When it doesn't: small outstanding, few years left, or fees that eat the gain. A Rs 15,000 fee against Rs 300/month savings needs 50 months to break even.
- Hidden costs: prepayment/foreclosure charges on the old loan, legal & valuation charges, and "teaser" rates that reset higher after a year.
- Cheaper alternative: ask your existing lender for a rate reset — many reduce the spread for a small conversion fee, no transfer needed.
- Timing: transfers early in the tenure save the most, because early EMIs are mostly interest.
Frequently asked questions
How much rate difference makes a balance transfer worth it?
Generally 0.5% or more, with at least 5 years remaining. Smaller gaps rarely survive the fees.
What are the charges for a balance transfer?
Processing fee (0.5–1% of outstanding), legal/valuation charges, plus possible prepayment penalty on the old loan. Budget ~Rs 10,000–25,000 total.
How long does a balance transfer take?
Typically 2–4 weeks: new lender sanctions, old lender issues foreclosure letter, disbursement closes the old loan.
Will my CIBIL score be affected?
A hard enquiry dips it slightly and temporarily; closing one loan and opening another is routine and not negative.
Can I transfer a loan with a top-up?
Yes — most lenders allow a top-up loan alongside the transfer, often at the same home-loan rate.
Is it better to negotiate with my current lender?
Often yes — a rate conversion/retention offer costs a small fee (0.25–0.5%) and skips all transfer paperwork. Try this first.
Does the tenure reset on transfer?
You choose: keep the remaining tenure (recommended — lower total interest) or extend it (lower EMI, more interest).
Can I transfer twice?
Yes, there's no legal limit — but each transfer costs fees and a CIBIL enquiry, so chase meaningful gaps only.
Fixed vs floating on transfer?
Floating rates are usually lower and have no prepayment penalty; fixed gives certainty at a premium. Compare the actual offered rate, not the label.
Does a transfer affect 80C/24b benefits?
No — principal still counts under 80C and interest under 24b with the new lender's certificate.