With home loan interest rates fluctuating between 8.5% and 9.8% in 2026, even a 0.5% reduction on a ₹50 lakh loan can save you ₹3–5 lakh over a 20-year tenure.
How Home Loan Balance Transfer Works
You apply to a new lender who pays off your outstanding home loan principal to your current bank. You then repay the new lender at the lower rate with a fresh tenure.
When Is It Worth It?
- Outstanding tenure: 10+ years remaining
- Rate differential: at least 0.5–0.75%
- Processing + legal fees recovered within 2–3 years of savings
Best Transfer Offers 2026
SBI offers 8.5% for CIBIL 750+. HDFC Bank at 8.65%. LIC Housing Finance at 8.55% for salaried. These are significantly lower than the 9.5–10% older loans carry.
Tax Implications
You continue to get Section 24(b) deduction (₹2L/year) on interest payments and Section 80C on principal repayment even after a transfer.