Switch home loan if you can reduce cost by at least 50 bps: Experts

Don't go by the lowest advertised home loan rates; find out what you are eligible for

Interest rates on home loans are at historic lows with eight lenders pegging their best rates at 6.65-6.8 per cent. If you are paying an interest rate that is significantly higher, consider a rate reset with your existing lender or a balance transfer to a new one.  

When should you shift?

A balance transfer involves costs, so there must be a considerable difference between your current and new rate.

“A balance transfer usually makes sense if there is a difference of at least 50 basis points between your current loan rate and the new one,” says Adhil Shetty, chief executive officer (CEO), BankBazaar.