Check your eligibility
What These Loans Fund
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The outstanding principal on the e...
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A top-up amount
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A fresh tenure
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Transfer of the mortgage to the ne...
Who Can Consider This Loan?
- Indian resident or NRI, generally aged 21 to 65 at loan maturity
- Salaried: stable employment, commonly two years total with one year current
- Self-employed: three years of business vintage with filed returns
- Property with clear, marketable title and approved plans
- Credit score materially affects both approval and the rate offered
- Total EMI obligations usually capped at 50 to 60% of net income
What May Not Be Funded?
- Processing, legal and technical charges on the new loan
- Stamp duty on the fresh mortgage, in some states
- Interest already paid on the original loan
- Foreclosure charges, where a fixed-rate loan applies them
- Transfers where the property or title does not meet the new lender's criteria
Always check the sanction letter before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading loans companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced loans professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
A home loan balance transfer moves your outstanding loan to a new lender at a lower rate. The new lender pays off the old one, takes over the mortgage, and you continue with a fresh EMI.
Unlike a vehicle loan transfer, the arithmetic here usually works. Home loans are long, balances are large, and a rate difference of even half a percentage point across fifteen remaining years is a very substantial sum — comfortably more than the processing and legal costs of moving.
The most common reason a transfer is available at all is that lenders price new customers better than existing ones. A borrower five years in is often paying materially more than the same lender is currently advertising, and the first step is simply asking your existing lender to match the market.
Who should consider it
Borrowers paying materially above current market rates with substantial tenure remaining. Borrowers whose credit profile has improved since the original sanction. Anyone who has not reviewed their home loan rate in three years.
Benefits
- A lower rate saves a large amount across a long remaining tenure
- Tenure can be shortened at the same time, saving more
- Top-up borrowing frequently available alongside the transfer
- No prepayment penalty on floating-rate loans, so exit is free
- An improved credit profile since sanction can be monetised
- Opportunity to move away from a lender with poor service
What the loan funds, and what it does not
Read the right-hand column first. It is the one that decides how much you have to arrange yourself.
Usually funded
- The outstanding principal on the existing loan
- A top-up amount, where the property value supports it
- A fresh tenure, which can be shorter or longer than the remainder
- Transfer of the mortgage to the new lender
Usually not funded
- Processing, legal and technical charges on the new loan
- Stamp duty on the fresh mortgage, in some states
- Interest already paid on the original loan
- Foreclosure charges, where a fixed-rate loan applies them
- Transfers where the property or title does not meet the new lender's criteria
Funding limits and the treatment of add-ons vary between lenders and move with the borrower profile. The sanction letter you receive is what governs — we will walk you through it before you sign.
How it works with us
- 1 Eligibility assessed before any application goes out Income, existing EMIs, credit profile and the property itself. Scattering applications across lenders damages your credit file for no benefit.
- 2 Compared on total cost across the full term Rate, processing fee, insurance bundling and prepayment terms together. Over twenty years, half a percentage point is a very large number.
- 3 Legal and technical due diligence Title search and valuation. This is also the stage that protects you, not just the lender — a title problem found now is a problem avoided.
- 4 Sanction, and reading it properly The sanction letter states the rate basis, reset frequency and every charge. We go through it with you before you sign.
- 5 Disbursal, and a plan for prepayment Funds released against the agreement or construction stage. We set out how prepayment would work, because it is the single biggest lever you hold.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Ask your current lender first. Many will reprice to retain you for a small conversion fee, which achieves the same saving with none of the paperwork.
- Total the costs — processing, legal, technical and any stamp duty — and compare against the interest saved over the remaining tenure. On a long tenure the saving usually wins comfortably.
- Do not extend the tenure when you transfer. Keeping the remaining term and taking the lower EMI, or shortening the term and keeping the EMI, both preserve the benefit; extending reverses it.
- A top-up alongside the transfer is convenient. Take it for a purpose that justifies fifteen years of secured borrowing, not because it was offered.
- Floating-rate exit costs nothing under RBI rules for individuals, which is what makes home loan transfers viable in a way vehicle loan transfers usually are not.
Documents required
- Identity proof — Aadhaar, PAN or passport
- Address proof
- Salaried: last three months of salary slips, Form 16 and appointment letter
- Self-employed: last three years of income tax returns with computation and financials
- Bank statements for the last six to twelve months
- Property documents — sale agreement, title deed, approved plan
- Property tax receipts and encumbrance certificate
- Existing loan statements, where you are servicing other EMIs
Frequently Asked Questions
When is a transfer worth doing?
Broadly when the rate gap exceeds about half a percentage point and you have a substantial balance with many years remaining. Home loans are long and balances are large, so the saving usually clears the switching costs comfortably — unlike shorter loans where it often does not.
Should I ask my existing lender first?
Always. Lenders price new customers better than existing ones, and many will reprice your loan to retain you for a small conversion fee. That gets you most of the saving with none of the paperwork, and it takes one phone call.
What does it cost to move?
Processing, legal and technical charges at the new lender, plus stamp duty on the fresh mortgage in some states. Exit from a floating-rate loan costs nothing for individual borrowers under RBI rules.
Can I take extra money at the same time?
A top-up is commonly available alongside the transfer, subject to your property's value. It is convenient — and it is still fifteen years of secured borrowing against your home, so take it for a reason rather than because it was offered.
Will the new lender re-check the property?
Yes. A fresh legal and technical assessment is standard, and it is one reason a transfer takes a few weeks rather than a few days. A title issue that has emerged since your original purchase can stall it.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.