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 ₹26,400 of processing, legal, and the stamp duty and registration on the fresh mortgage. Advocate fees are extra.
₹3,477
less every month
8 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. Add the 40% surcharge on that duty, registration of 1% capped at ₹5,000 and about ₹500 in page fees, and the mortgage on a typical transfer costs about ₹12,500 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 assist you through the whole move: the foreclosure letter from your existing lender, getting your original documents back, and the fresh mortgage and its registration. If they do not clear, we say so and you keep your money.
Step 1 of 2
Start with two lines.
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Our lenders
*Starting rates as on 2 Sept 2026, as published by each lender. Rates may change and are subject to the lender’s approval.
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 ₹26,400 — break-even at month 8, and roughly ₹7.2 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 roughly ₹25,000 to ₹40,000 on a typical Gandhinagar file: the new lender's processing fee, a legal and technical valuation, CERSAI, and the charges on the fresh mortgage — stamp duty of 0.25% of the loan capped at ₹5,000 plus a 40% surcharge on it (up to ₹7,000), registration of 1% capped at ₹5,000, and about ₹500 in page fees. On a ₹42 lakh loan the mortgage part comes to about ₹12,500. The ₹5,000 stamp duty cap came in with the Gujarat Stamp (Amendment) Act 2025; before it, the duty on a ₹1 crore loan was ₹25,000. Advocate fees for the sale deed and the mortgage are extra.
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.