The three numbers that decide it
Rate gap: below 0.35–0.40%, skip it. At 0.5%+ with meaningful tenure left, it's usually worth pricing out.
Remaining tenure: interest is front-loaded, so a transfer with 15 years left saves multiples of the same transfer with 4 years left.
Transfer costs: processing fee (~0.5% or flat ₹10–25k), legal and valuation charges, and stamp duty on the new mortgage deed (state-dependent, often 0.1–0.3% of the loan).
Run the math in two minutes
Our balance transfer calculator takes your outstanding amount, current rate, offered rate and remaining tenure, and shows monthly plus lifetime savings. Subtract your estimated transfer costs from the lifetime figure — if what remains is less than ~₹50,000, the hassle rarely justifies it.
A ₹40 lakh balance at 9.5% with 15 years left, moved to 8.6%, saves roughly ₹2 lakh net of costs — clearly worth it.
First, try the lazy option: reprice with your own bank
Most lenders offer an internal rate reset for a flat conversion fee (₹3,000–6,000) — you get most of the benefit with none of the paperwork.
Get a transfer sanction from a competitor first, then show it to your bank's retention desk. If they match, take the reprice; if they stonewall, transfer with confidence.
The top-up trick
Transfers unlock top-up loans at home-loan-adjacent rates — the cheapest large-ticket personal borrowing that exists. Renovation, education, business capital: a top-up at ~9.5% beats a personal loan at 14% by a wide margin.
If you need funds anyway, a transfer + top-up can make sense even when the pure rate savings are marginal.