How to decide
Moving ₹40 lakh from 9.5% to 8.5% with 15 years left cuts the EMI by about ₹2,379 a month, saving about ₹4.08 lakh after ₹20,000 in fees. The fees are recovered in 9 months. Compare current rates on our home loan rates page.
Questions people ask
When is a balance transfer worth it?
Usually when the new rate is at least 0.5% lower and you still have many years left. The earlier in the loan you switch, the more you save, because most of the interest is paid in the early years.
What fees should I count?
Processing fee at the new lender, legal and valuation charges, stamp duty on the new mortgage in some states, and any charges at your current lender. Floating-rate home loans for individuals have no prepayment penalty.
Should I ask my current bank first?
Yes. Many banks will lower your rate for a small conversion fee if you ask, which can be cheaper and quicker than moving.
Method and sources
EMI at each rate for the remaining tenure (standard reducing-balance formula). Saving = difference in EMIs × months left − fees. Break-even = fees ÷ monthly EMI saving. How we calculate.
Last reviewed 22 Oct 2026 by the WealthFeedz team.