Home Loan Balance Transfer: A Simple Guide for 2026

A balance transfer moves your outstanding home loan to another lender offering a lower rate or better service. You save when the interest reduction outweighs processing fee, legal charges and any top-up costs.

Check whether you are on fixed or floating rate, and if a reset clause applies. Compare effective annual rate, not just headline spread over repo.

Outstanding tenure matters: restarting clock on 20 years can lower EMI but increase total interest. Ask for an amortisation comparison before you sign.

Money Star's home loan desk helps evaluate transfer quotes from partner banks, including informal top-up for renovation if your LTV allows.