Home Loan Balance Transfer Calculator
Evaluate if switching your home loan to a new lender will save you money.
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Mo
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Existing EMI
₹ 0
New EMI
₹ 0
Total Savings₹ 0
What is a Home Loan Balance Transfer Calculator?
A Home Loan Balance Transfer Calculator helps you decide if you should switch your existing home loan to another bank offering a lower interest rate. It compares the total cost of continuing with the current lender versus the cost of switching to a new lender, factoring in processing fees and other charges.
How It Works
The calculator computes the total interest payable for the remaining tenure with the current bank and compares it with the new bank's interest plus switching costs.
Net Savings = (Total Interest with Old Bank) - (Total Interest with New Bank + Processing Fees)
Example Calculation
Scenario
Outstanding Loan: ₹30L. Remaining Tenure: 15 Years. Current Rate: 9.5%. New Rate: 8.5%.
- 1.Current EMI = ₹31,326 | Total Remaining Interest = ₹26.3 Lakhs
- 2.New EMI = ₹29,542 | Total New Interest = ₹23.1 Lakhs
- 3.Interest Saved = ₹3.2 Lakhs
- 4.Less: Processing Fee (e.g., ₹10,000)
- 5.Net Savings = ₹3.1 Lakhs
Why This Tool is Useful
- ✓Quantifies the exact savings from switching.
- ✓Helps you recover the processing fee cost quickly.
- ✓Reduces your monthly EMI burden.
- ✓Allows you to Top-up your loan during transfer.
- ✓Prevents you from switching if the cost outweighs benefits.
Tips & Comparison
- •Switch Early: Balance transfer is most beneficial in the early years of the loan when the principal is high.
- •Negotiate First: Before switching, ask your current lender to lower the rate. They might match the offer to retain you.
- •Hidden Costs: Look out for legal fees, valuation charges, and stamp duty associated with the transfer.
- •Credit Score: You need a good credit score (750+) to get the best transfer rates.