Home Loan Balance Transfer

Banks and HFCs usually offer home loan balance transfer interest rates starting from 7.10% p.a. onwards. The lender sets its HLBT interest rates after factoring in the credit profile of applicants. Below-mentioned is the home loan interest rate comparison of the top lenders offering home loan balance transfer to their applicants.

*when applied through Paisabazaar

Last updated on 21st January 2026

• Reduces EMI burden and eventually the interest cost.
• Better loan terms and offers by the new lender.
• Flexible loan tenure.
• Top-up funds available along with a balance transfer.

Applicants should opt for a home loan balance transfer only when,

• The current interest rate is higher than the market rate.
• You want to reduce your EMI burden.
• Your credit score has improved, and you are eligible for lower rates.
• The new lender offers better offers and services.
• The loan repayment is in the early stages.

When you transfer your home loan to another lender, even a slight reduction in the interest rate can help you save substantially. Let us understand this with the help of an example.

• Minimum age of the applicant at the time of loan application should be 18 years, and maximum age at the time of loan maturity should be 70 years.
• Existing home loan borrowers are eligible for a home loan balance transfer.
• The EMI/NMI ratio of the applicant should be below 55%, including the existing EMIs and EMIs of the proposed home loan.
• Most lenders prefer applicants to have a minimum credit score of 750 and above.
• Salaried and self-employed individuals with a strong credit profile are eligible for a home loan balance transfer.
• The outstanding balance should be high.

Below is a list of documents that a lender may generally ask at the time of approving your home loan balance transfer application.

KYC Documents

• PAN card
• Aadhaar card
• Passport
• Driving license
• Voter ID

Income Proof

• Salary slip for the last 3 months
• Bank account statement for the last 6 months
• Form-16/ITR
• Balance sheet and P&L statement for the last 2 years
• Latest form 26AS

Property Documents

• Allotment letter
• Title deed
• Proof of no encumbrance

• Compare interest rates and offers by multiple lenders.
• Maintain a high credit score (preferably, 750 or above).
• Check the other costs associated with the home loan (processing fees, foreclosure charges, etc.)
• Calculate the total loan cost before transferring your loan to the new lender.
• Negotiate with the existing lender.

What is a home loan balance transfer?

Existing home loan borrowers of banks and HFCs can transfer their existing home loan accounts to lenders offering lower interest rates.

What is the maximum tenure you can avail for a home loan balance transfer?

You can avail a home loan balance transfer for a maximum tenure of 30 years.

How many times can I transfer my home loan?

You can transfer your home loan multiple times. However, every time you transfer, you have to pay the processing fee charged by the lender. Therefore, transfer your home loan after taking into account all the rates and offers.

Can I avail a top-up on the home loan balance transfer?

Yes, some lenders offer additional funds on your home loan balance transfer in the form of a top-up to meet your personal financial requirements.

Am I eligible for tax benefits on a transferred home loan?

Yes, you can avail tax benefits on a transferred home loan under section 24(b) on interest repayment of up to Rs. 2 lakh and under section 80C on the principal repaid of up to Rs. 1.5 lakh.