It makes sense to transfer your home loan to a new lender when your existing home loan interest rate is higher than the prevailing market rates or you wish to reduce your EMI burden. There is a third possibility wherein you wish to shift to a fixed-rate home loan instead of floating rate to avoid fluctuations in EMIs. However, you should not transfer your home loan if you have been repaying for a long time, say on a 1 5-year home loan if you have repaid for ten years as it makes little sense to transfer at this stage.

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