Financial Calculators
Balance Transfer Calculator
A lower rate elsewhere sounds tempting. This shows whether switching actually pays, after the costs.
Net saving from switching
₹4,08,293
- Current EMI
- ₹41,769
- EMI after transfer
- ₹39,390
- One-time costs
- ₹20,000
Comparison holds the remaining tenure constant at both rates and deducts one-time transfer costs. Check for foreclosure charges on fixed-rate loans; floating-rate home loans have none.
When refinancing makes sense
A balance transfer moves your outstanding loan to a lender offering a lower rate. The saving is real but not free: processing fees, legal and valuation charges apply, and the paperwork takes effort. The switch makes sense when the rate gap is meaningful and enough tenure remains for the lower rate to work.
As a rule of thumb, a gap of 0.5% or more with 10+ years remaining is usually worth acting on; a 0.25% gap in the last few years rarely is.
What is compared
Old EMI = EMI(outstanding, old rate, remaining months)\nNew EMI = EMI(outstanding, new rate, remaining months)\nNet saving = (Old EMI - New EMI) x months - transfer costsWorked example: on a Rs 40,00,000 outstanding balance with 180 months left, moving from 9.5% to 8.5% cuts the EMI from Rs 41,769 to Rs 39,390; over the tenure that saves Rs 4,28,293 gross, and about Rs 4,08,293 after 0.5% transfer costs.
Frequently asked questions
Are there charges for leaving my current lender?
Floating-rate home loans have no foreclosure or transfer penalty by regulation. Fixed-rate loans may carry charges; check your agreement before deciding.
Should I keep the same EMI after transferring?
That is often the smartest move: keep paying the old EMI at the new rate and the loan closes years early. The calculator's saving assumes the lower EMI; keeping the EMI saves even more.
What costs should I budget for?
Processing fee (often 0.25-0.5% or a flat amount), legal and valuation charges, stamp duty on the new mortgage in some states, and your own time. Enter them as a percentage here.
Can I also negotiate with my existing bank?
Yes, and it is worth trying first. Most lenders have a rate-reset option for a small fee that captures most of the benefit with none of the paperwork.
Every EMI rupee saved can compound.
Redirect the EMI saving into a SIP and the switch pays twice.