Home loan balance transfer, also known as ‘home loan refinance’, is the process wherein a customer
can approach a new lender to pay off their existing loan. The purpose behind opting for a home
loan transfer is to capitalize on lower interest rates being offered by banks and other
lending institutions.

The two major benefits linked with home loan transfer are
(1) low interest rates.
(2) more savings owing to reduced interest amount.

What to look out for before transferring the loan?

Total cash flow: When considering home loan balance transfer,A balance transfer is not
beneficial in all the scenarios and is guided
Current repayment stage: The extent of benefit you are likely to reap by opting for a home
loan transfer is determined the phase of repayment you are in currently. Transferring your
loan when it is nearing its end is not a good idea as you save less and might in fact have
to pay more.
Processing fees and other allied charges: Take into consideration the processing fee, stamp
duty, legal valuation fee, technical charges and other allied charges that your new bank
would charge and compare it with the benefit in terms of reduced interest rates.

Home Loan Transfer Example

Let’s see how much you can save on transferring your home loan.
For the purpose of  calculations,we have considered your interest rate as 11% and total
loan tenure 20 years. Additionally, we have taken the new rate as 9.90% (for female borrowers,
rates have been lowered to 9.85%) and the loan tenure left as 15 years.
so you can save a handsome amount of money by this home loan transfer.