What Are The Charges For Home Loan Transfer?

I took out a home loan last year but I was not happy with the repayment process of the loan. I did some research and learned about the home loan transfer process. But I was not able to find the home loan transfer from one bank to another charges. To know about this, I called my banker friend, and asked him about the same. Here is what he told me. 

What are the Housing Loan Transfer Charges?

My friend told me that various banks have various charges and provided me with a list. I have added the list below.

After going through this list, I decided to choose HDFC Bank because of its low interest rate and the benefits it was providing. I hope this list about home loan balance transfer charges will be as helpful to you as it was to me. 

The home loan transfer from one bank to another charges vary depends on the lending bank. As an employee of the HDFC bank, I can share the charges in HDFC in detail. In case you want to know the charges of some other bank, visit their official website and get all the details there.

What are the Home Loan Balance Transfer Charges in HDFC?

The HDFC home loan takeover charges are as follows:

So these are the home loan BT charges of HDFC. Here are the interest rates of HDFC home loan balance transfer: 

You can learn more about the balance transfer home loan charges on

I hope this information was helpful. You can visit your nearest HDFC bank’s branch or any other bank where you want to transfer your home loan to learn more about the charges and other rates.

Hey Friend,

Being associated with the banking sector for 9 years, I realised that people transfer their home loan because of 3 reasons; after refinancing their mortgage, their interest rate can go down. Either EMI will go down while the duration is the same, or EMI will stay the same while the term is shortened.

The overall cost of the loan will decrease as a result. The home loan transfer charges must always be taken into account when opting for one. 

Only then should a customer decide to refinance the loan if the interest rate offered by the new bank, when added to these extra fees, still works out to be less expensive than the existing loan.

Home loan processing costs range from 0.5% to 1% of the loan amount.

SBI home loan transfer charges start at 6.95%. SBI's balance transfer programme for house loans has competitive interest rates, flexible repayment terms, and low administrative costs. By moving your house loan to SBI, you can reduce your interest costs, pay off your loan sooner, and receive other perks.

Existing home loan borrowers can use the home loan balance transfer service to move their outstanding balance to a new lender who would finance it at a lower interest rate and/or for a longer term. Such borrowers can minimise their overall interest expense thanks to the lower interest rate made available through the home loan balance transfer service. Those who took out mortgage loans at higher interest rates but are now qualified for significantly reduced rates thanks to an improved credit profile will benefit the most from this facility.

• Private and Foreign Banks to SBI

• Commercial banks on the schedule (SCBs)

• Housing Finance Companies (HFCs) registered with National Housing Bank are the borrower's employers if they are Central or State Government entities, or their undertakings (NHB)

A house loan transfer involves several additional charges in addition to the interest rate. Before transferring their house loan balance, the following are two crucial fees that borrowers must consider:

• Charges for foreclosure: 

These fees are paid to the current lender to close the loan before the term has run its course. On house loans with adjustable rates, these fees are nonexistent. These fees, however, might reach 4% of the outstanding debt for house loans with fixed interest rates. 

• Processing fees: 

These costs, which can be up to 6% of the loan amount, must be paid to the new lender in order for them to process your application for a new home loan after the transfer.

I would like to conclude here about home loan transfer charges. I hope this helps:)

Read More: