Home Loan Transfer: Should You Switch Lenders for Lower Rates? Expert Advice

• Transferring your home loan to a new bank offering lower interest rates is advisable if it provides a better deal.
• A good repayment track record is essential to qualify for a loan takeover by another bank.
• Floating-rate home loans typically have no prepayment charges upon transfer.
• Consider processing fees (0-0.50% of loan amount) charged by the new lender, which can sometimes be negotiated or waived.
• If your existing lender won't match market rates, moving your loan can save significant money over time, especially if a substantial portion remains unpaid.

Why It Matters: Switching home loan lenders for lower rates is beneficial, but assess processing fees and repayment history.