Home Loans Calculators

Home Loan Prepayment vs Balance Transfer — Which Saves More?

Prepayment reduces your principal directly using money you already have; balance transfer moves your existing balance to a cheaper lender without needing extra cash upfront, for a one-time fee. Which saves more depends on whether you have surplus funds to prepay and how much cheaper the new lender's rate actually is — they aren't mutually exclusive either.

How a Home Loan Amortization Schedule Works

Even though your EMI stays constant, its split between interest and principal shifts dramatically over the loan's life — interest dominates in the early years and principal takes over as the outstanding balance shrinks.

How a Larger Down Payment Changes Your Loan and EMI

Putting down ₹5 lakh more on the same ₹50 lakh home shrinks the loan from ₹40 lakh to ₹35 lakh — and at the same rate and tenure, that translates into a real, sizeable drop in the monthly EMI.

How Much Home Loan Can You Afford?

Lenders typically cap your total EMIs (existing plus new) at 40-50% of your monthly income — called FOIR, your Fixed Obligation to Income Ratio. That cap, combined with the interest rate and tenure you're offered, sets your maximum loan amount; add your planned down payment to get the total home price you can afford.

How to Reduce Your Home Loan EMI

Three levers actually reduce your home loan EMI or total cost: making a lump-sum prepayment toward the principal, transferring the balance to a lender offering a lower rate, or extending the tenure (which lowers the EMI but increases total interest) — prepayment and balance transfer are usually the better options if your goal is paying less overall, not just a smaller monthly number.