Home Loan Balance Transfer Calculator
Net saving after fees, GST and stamp duty, the break-even month, and a letter asking your bank to match
Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026
How to use: Enter the outstanding principal and EMIs left from your latest statement, your current rate, the new lender's rate and fees, and your own bank's repricing offer if you have one. Compare the net saving of each route, then send the letter to your bank.
Example₹30 lakh outstanding with 18 years left at 9.25%, a transfer offer at 8.5% with a 0.5% processing fee and ₹15,000 of other costs, against your own bank's offer of 8.6% for a ₹10,000 fee.
Principal outstanding on your latest statement
18 yr left
The rate in the sanction letter, not the 'starting from' rate in the ad
₹15,000 + 18% GST. Some lenders waive it on transfers; ask
Stamp duty on the new mortgage varies by state. Your old bank can't charge for closing a floating-rate loan
Or ask your own bank to cut the rate
The one-time 'switch' or 'conversion' fee, with GST. Ask the branch for it in writing
Transfer saves you, after every cost
₹2,69,667
EMI drop a month
₹1,400
Months to earn the costs back
24
One-time cost of moving
₹32,700
Every route, side by side
| Route | EMI | Ends in | Net saving |
|---|---|---|---|
| Stay at 9.25% | ₹28,564 | 18 yr | — |
| Transfer at 8.5%, lower EMIcost ₹32,700 | ₹27,164 | 18 yr | ₹2,69,667 |
| Transfer at 8.5%, keep EMIcost ₹32,700 | ₹28,564 | 16 yr 2 mo | ₹6,23,710 |
| Ask your bank for 8.6%cost ₹10,000 | ₹27,348 | 18 yr | ₹2,52,460 |
Net saving = interest saved over the rest of the loan minus the one-time cost. For a transfer to pay at all on this loan, the new rate has to be below 9.17%. The transfer beats your bank's offer at these numbers.
Letter to your bank to reduce the rate
Send this before you move. Many banks match a competing offer for a small fee. Replace the [brackets], then email it or hand it in at the branch.
A balance transfer moves your home loan to a lender charging less interest. The new EMI is lower, but moving costs money up front, and that cost is what lender ads leave out: the processing fee and GST, legal and valuation charges, and the stamp duty on the new mortgage.
This calculator nets all of it out on your own loan, month by month on the reducing balance: what you really save over the remaining tenure, how many months of lower EMIs it takes to earn the costs back, and the highest new rate at which the move still pays. It also prices the option most people skip, asking your own bank to cut the rate, and writes that letter for you.
Prepaying instead? See reduce EMI or tenure. For the full repayment schedule, use the EMI calculator.
RBI directions barring foreclosure charges and prepayment penalties on floating-rate term loans to individual borrowers for non-business purposes. GST at 18% on lender fees. Interest computed month by month on the reducing balance at rate ÷ 12.
Assumes both rates stay the same for the rest of the loan; floating rates move with the benchmark. Stamp duty, legal and valuation charges differ by state and lender, so enter the figures from the sanction letter. Tax benefits, insurance bundled with the new loan and any top-up loan are not included, and the time value of money is ignored.
- Is a home loan balance transfer a good idea?
- Only when the interest you save over the rest of the loan is clearly more than the cost of moving: the new lender's processing fee plus 18% GST, legal and valuation charges, and the stamp duty on the new mortgage. A bigger rate gap, a bigger outstanding balance and more years left all make it pay. Late in the loan, when most of each EMI is principal, even a good rate cut can fail to cover the costs. The calculator shows the net figure and the break-even month for your own loan.
- What are the charges for a home loan balance transfer?
- On the new lender's side: a processing fee (often a fraction of a percent of the loan, sometimes waived on transfers) plus 18% GST, legal and technical valuation fees, and stamp duty on the mortgage document, which depends on your state. On the old lender's side, a floating-rate home loan taken by an individual can be closed without a foreclosure charge under RBI's rules; fixed-rate loans and business loans can carry one.
- Should I ask my current bank to reduce the rate first?
- Yes. Most banks let an existing borrower move to a lower rate for a one-time conversion or switch fee, with no new paperwork, legal fees or stamp duty. If your bank matches or comes close to the new lender's rate, that is usually cheaper than moving. The calculator compares both, and writes the request letter with your numbers.
- How do I write a letter to the bank to reduce my home loan interest rate?
- Address it to your branch or home-loan department with your loan account number, the current rate, the outstanding balance and the rate another lender has offered. Ask the bank to reduce your rate under its conversion facility, to state the fee, and to reply in writing by a date. The letter on this page is filled in from your numbers; replace the bracketed details.
- Should I lower the EMI or keep it the same after a transfer?
- Keeping the same EMI at the lower rate closes the loan sooner and saves more interest; lowering the EMI frees cash every month. The table shows both. Tell the new lender which one you want before the loan is disbursed.
Related guides
- Repo rate 5.50% हुआ: आपकी home loan EMI कितनी बढ़ेगी?RBI ने 7 अक्टूबर को repo rate 0.25% बढ़ाया। ₹20 लाख से ₹75 लाख के home loan पर EMI कितनी बढ़ती है, और कब से, पूरा हिसाब।
- Home-loan prepayment: when matters more than how muchOn a 9% home loan, prepaying early demolishes interest — the same prepayment saves three times more in year 1 than in year 10. The numbers, worked out.
- Home loan जल्दी कैसे खत्म करें? सही तरीकाEMI बढ़ाना, साल में एक extra EMI, या tenure घटाना — तीनों में ब्याज की बचत बराबर नहीं होती। और कब prepay करना घाटे का सौदा है।