Question
When is a home-loan balance transfer worth it?
Answer
Bottom line: A balance transfer is worth it when the interest saved beats the switching costs — usually early in the tenure.
1. What
You move the outstanding loan to another lender offering a lower rate.
2. When
Best when the balance is large and much interest remains, so there is more to save.
3. Costs
Floating-rate home loans to individuals carry no foreclosure penalty, which lowers the switching cost.
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This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.