Also called: Home loan balance transfer, Loan refinancing, HLBT
Moving an outstanding home loan from one lender to another, usually for a lower interest rate.
How it works and what to check
The new lender pays off the old loan and takes the original documents. There is no prepayment penalty on a floating-rate home loan for individuals, but the new lender may charge processing and legal fees, and stamp duty may apply on the new mortgage in some states.
A transfer is worth it when the interest saved over the remaining tenure is well above the costs, which is likelier early in the loan.