Home Loan Balance Transfer Playbook

Your home loan = benchmark + spread. Benchmarks move with repo; spreads go stale unless you reset them. If your bank won’t play ball, transfer.

Sequence

• Ask for a conversion quote to reset the spread to the current carded rate.
• Compare net savings from conversion vs a balance transfer, including all fees.
• Proceed only if the effective rate cut is ≥50–75 bps after costs and you keep the remaining tenure (don’t restart the clock).

Paperwork and Pitfalls

• Don’t restart to 20/30 years unless cashflow is under stress; protect the end date.
• Get foreclosure letter, list of documents, and closure statement from old lender.
• Price in legal, valuation, processing, CERSAI/registration, and stamp/franking on loan docs (state‑specific).
• For top‑ups, compare rate and reset options vs a stand‑alone personal loan; align tenure with use‑case.

Tools

• EMI Calculator: Model old vs new EMI and tenure with and without prepayments.
• Home Buying Journey: View full acquisition and ongoing cost stack.

Negotiation Script

• "What's my benchmark and spread today, and the current spread for my risk bucket?"
• "Offer a conversion to the current spread. Quote fee and final rate."
• "If not competitive, I will proceed with a transfer while maintaining remaining tenure."

Related Guides

• Home Loan Prepayment Strategy: Master prepayment cadence after securing the best rate