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How does balance transfer of home loan work and is it beneficial?

Asked 17 Mar 2026·467 views
I have a home loan of Rs 45 lakh at 9.1% interest rate with HDFC for the last 3 years. I have 17 years remaining. Another bank is offering 8.5% interest rate. Should I balance transfer? What are the costs involved and how do I calculate if it is worth it?
Asked by Sunita Rao

6 Answers

35
✓ Accepted Answer
Balance transfer can be beneficial if the rate difference is at least 0.5-0.75%. On Rs 45 lakh at 9.1% vs 8.5% for 17 years: EMI at 9.1% = Rs 39,938, at 8.5% = Rs 38,234 — saving of Rs 1,704/month or Rs 3.5 lakh over 17 years. Subtract processing fees (0.5-1% = Rs 22,500-45,000) and legal/title search costs (Rs 5,000-10,000).
Answered by Priya Sharma · 8 Feb 2026
35
✓ Accepted Answer
Balance transfer can be beneficial if the rate difference is at least 0.5-0.75%. On Rs 45 lakh at 9.1% vs 8.5% for 17 years: EMI at 9.1% = Rs 39,938, at 8.5% = Rs 38,234 — saving of Rs 1,704/month or Rs 3.5 lakh over 17 years. Subtract processing fees (0.5-1% = Rs 22,500-45,000) and legal/title search costs (Rs 5,000-10,000).
Answered by Priya Sharma · 12 Feb 2026
35
✓ Accepted Answer
Balance transfer can be beneficial if the rate difference is at least 0.5-0.75%. On Rs 45 lakh at 9.1% vs 8.5% for 17 years: EMI at 9.1% = Rs 39,938, at 8.5% = Rs 38,234 — saving of Rs 1,704/month or Rs 3.5 lakh over 17 years. Subtract processing fees (0.5-1% = Rs 22,500-45,000) and legal/title search costs (Rs 5,000-10,000).
Answered by Priya Sharma · 21d ago
21
Use the FinWiz24 home loan balance transfer calculator to compute exact savings. Also consider negotiating with HDFC first — they often match rates for existing customers with good repayment history to avoid losing the loan. Mention the competing offer and ask for a rate reduction, which avoids the hassle of balance transfer.
Answered by Rajesh Kumar · 15 Feb 2026
21
Use the FinWiz24 home loan balance transfer calculator to compute exact savings. Also consider negotiating with HDFC first — they often match rates for existing customers with good repayment history to avoid losing the loan. Mention the competing offer and ask for a rate reduction, which avoids the hassle of balance transfer.
Answered by Rajesh Kumar · 20 Mar 2026
21
Use the FinWiz24 home loan balance transfer calculator to compute exact savings. Also consider negotiating with HDFC first — they often match rates for existing customers with good repayment history to avoid losing the loan. Mention the competing offer and ask for a rate reduction, which avoids the hassle of balance transfer.
Answered by Rajesh Kumar · 25 Mar 2026

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