Home Loan Transfer: Is 1% Lower Interest Worth It? 5 Key Factors to Consider

• Transferring your home loan is beneficial only if the interest rate difference is significant (0.50% to 1% or more) to offset fees.
• Maximum benefit from a balance transfer is realized in the initial years of the loan when a larger portion of EMI goes towards interest.
• Consider transferring for better terms like reduced EMI, faster repayment, daily reducing balance interest, or easier prepayment options.
• An improved credit score (750+) can help secure a better interest rate, potentially from a new bank or even your existing lender.
• Avoid transferring if the loan is largely paid off, the rate difference is minimal, or new banks have high hidden fees and processing costs.