The loan you have
Read these off your latest statement, not the sanction letter.
₹
₹ 2,00,000₹ 45 L₹ 5,00,00,000
% p.a.
6.00 % p.a.16.00 % p.a.
yrs
1 yrsCurrent EMI ₹ 43,27130 yrs
The offer on the table
Keeping the tenure identical is the honest comparison. Resetting the clock back to 20 years always makes the EMI look better and usually costs you more.
% p.a.
6.00 % p.a.1.05% lower16.00 % p.a.
yrs
1 yrsSame as current30 yrs
%
0.00 %₹ 22,500, plus legal and valuation2.00 %
When the switch pays for itself
Cumulative net benefit. It starts below zero, you pay the fee up front, and crosses into profit at break-even.
EMI saved every month
₹ 2,939
₹ 43,271 → ₹ 40,332
Total outflow today
₹ 93.47 L
Total outflow after switch
Includes the processing fee
₹ 87.34 L
Net saving over the tenure
₹ 6.12 L
Break-even
Stay longer than this and you are ahead
8 months
Worth doing if you will hold the loan past month 8. Ask your existing lender to match the rate first: an internal rate reset costs a fraction of a transfer.
What this assumes
- ·A balance transfer of the outstanding principal only: no top-up loan.
- ·Processing fee charged as a percentage of the outstanding, deducted up front. Legal, valuation and MOD/stamp charges on the new mortgage are extra and vary by state.
- ·No foreclosure penalty: RBI bars it on floating-rate loans to individuals. A fixed-rate loan may still carry one, check your sanction letter.
- ·Both loans priced on a reducing balance with the rate held flat for the tenure.