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Balance Transfer Calculator

Is switching your loan to a lower rate worth it?

₹1,00,000₹2,00,00,000
6%24%
6%24%
1 yr30 yr

Total savings

₹4.28 L

Current EMI₹41,769
New EMI₹39,390
Monthly saving₹2,379
New total interest88%
Interest saved12%

Subtract transfer costs — processing fee (~0.5%), legal/valuation charges and stamp duty on the new mortgage — from the savings shown. A transfer usually makes sense when the rate gap exceeds 0.4–0.5% with 8+ years remaining.

When is a balance transfer worth it?

Three factors decide it: the rate gap, the remaining tenure and the transfer costs. A 1% gap on ₹40 lakh with 15 years left saves several lakh — easily justifying ~₹25–40k of fees. The same gap with 3 years left may save less than the paperwork costs.

Frequently asked questions

Can I get a top-up loan with the transfer?

Usually yes — the new lender can extend extra funds against the same property at home-loan-like rates, which is far cheaper than a separate personal loan.

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