Compare Current vs New Loan
Balance Transfer Analysis
When to Consider Balance Transfer
- Your current rate is at least 0.50% higher than available market rates
- You have at least 5+ years remaining on the loan
- The processing fee + charges don't exceed first year's savings
- Your credit score has improved since you took the original loan
Balance Transfer Process
- Check current loan outstanding and interest rate
- Get quotes from 3-4 banks for balance transfer
- Calculate net savings (interest saved minus all fees)
- Apply to new bank with required documents
- New bank issues cheque to old bank for outstanding amount
- Old loan closed, new loan starts with lower rate
Watch Out
Some banks offer low introductory rates that increase after 1-2 years. Always confirm the rate for the entire remaining tenure. Also check if the new bank charges any hidden fees like documentation charges or insurance requirements.