Home / Balance transfer
Moving your loan — and when not to.
Everyone will show you the monthly saving. Almost nobody shows you the month it turns positive, and that is the number that decides it. We will tell you when the answer is to stay where you are.
Worked example
₹42 lakh outstanding at 9.10%, eighteen years left, moved to 7.75% — after about ₹20,900 of processing, legal, and the stamp duty and registration on the fresh mortgage.
₹3,477
less every month
7 months
to break even
The cost nobody quotes you
National guides list the processing fee and stop, which is why the numbers people arrive with are too optimistic. In Gujarat the new lender registers a fresh mortgage against your property, and that instrument carries its own stamp duty and registration.
That line changed in your favour recently. The Gujarat Stamp (Amendment) Act 2025, in force since 10 April 2025, kept the rate at 25 paise per ₹100 of the loan but introduced a cap that had never existed: ₹5,000 on any loan up to ₹1 crore. On a ₹42 lakh transfer the duty used to be ₹10,500; on a ₹1 crore loan it was ₹25,000. With registration on top, about ₹7,000 all in. Most calculators still online quote the old figure and will talk you out of a move that is now worth making.
Four times you should stay put
You are inside the last five years. By then almost all of your EMI is principal, so a lower rate has little left to bite on. The saving is small; the fixed cost is not.
You might sell within two years. A break-even of fourteen months means nothing if you are selling in twelve. People moving up from a first flat get caught by this constantly.
Your existing lender will match. Many will drop your rate for a small conversion fee, because keeping you is cheaper than losing you. It costs one phone call to find out, and we will tell you to make that call before we process anything.
The gap is under half a percent. Below roughly 0.50% the arithmetic gets thin fast and the paperwork stops being worth it.
What we actually do
Collect your sanction letter and statement, get an indicative rate from the lenders that fit your profile, and show you the three numbers. If they clear, we run the file: foreclosure letter from your existing lender, retrieval of your original documents, the fresh mortgage drafted and registered. If they do not clear, we say so and you keep your money.
Step 1 of 2
Start with two lines.
What do you need?
The panel
Starting rates as on 2 Sept 2026, taken from each lender’s own page. Indicative — what you are finally offered is the lender’s call, and depends on your profile.
Asked often.
Is a home loan balance transfer worth it?
Only once the switching cost is behind you. Divide the total cost of moving by your monthly saving and you get the break-even month. On ₹42 lakh at 9.10% with eighteen years left, moving to 7.75% saves about ₹3,477 a month against a cost of about ₹20,900 — break-even at month 7, and roughly ₹7.3 L in hand across the remaining term. Beyond about twenty-four months to break even, it usually is not worth the effort.
What does a home loan balance transfer cost in Gujarat?
Budget ₹15,000 to ₹30,000 on a typical Gandhinagar file: the new lender's processing fee, a legal and technical valuation, CERSAI, and the stamp duty and registration on the fresh mortgage the new lender registers against your property. That last item is capped at ₹5,000 for loans up to ₹1 crore under the Gujarat Stamp (Amendment) Act 2025, where it previously reached ₹25,000.
Is there a foreclosure penalty when I transfer my home loan?
Not on a floating-rate home loan taken by an individual borrower — the Reserve Bank of India prohibits lenders from charging foreclosure or prepayment penalties on those. Fixed-rate loans can still carry one, so check which type yours is before assuming the exit is free.
Can I get a top-up loan when I transfer my home loan?
Usually yes, and it is one of the better reasons to move. Because the new lender is taking a fresh mortgage on a property that has appreciated, a top-up on the same security is normally available at close to home loan rates — far cheaper than a personal loan for the same purpose.
Worked examples are illustrations, not offers. Lender rates as on 2 Sept 2026. The example assumes the same remaining tenure on the new loan and a constant rate; a floating rate will move. LoanPark is a loan facilitator and direct selling agent, not a lender.
Send us your current rate.
Outstanding, rate and years left is enough. We will come back with the three numbers — including when the answer is to stay.