Consider switching home loan if you can get 35-45 bps lower rate

Avoid extending the tenure while transferring as this will nullify the gains

The repo rate currently stands at 6.5 per cent after the Reserve Bank of India (RBI) hiked it by 25 basis points on February 8. Experts believe we are now at, or close to, the peak of the rate hike cycle.

With most home loans linked to an external benchmark (usually the repo rate), borrowers will pay peak or near peak interest rates on them. For many borrowers, the option to enhance the tenure has been exhausted and their equated monthly instalments (EMIs) will move up now. Those feeling the pinch should explore the option of switching (also referred to