after a few months your emi will yet be lower by rs 770 that is savings of rs 6 lakh over the loan tenor explains patel negotiate or switch a customer has three options before her if she wants to bring down the interest rate on the home loan one negotiate with the bank most banks are willing to negotiate when the clients express their intention to switch as they are keen on retaining good clients says patel the second option is to transfer the home loan to another bank moving to the lower rate offered by your existing lender for new customers by paying a conversion fee in the range of 051 5 of the outstanding loan amount is another alternative he recommends negotiating with lenders before exploring the other two options if negotiations fail you can explore the conversion facility some banks will charge a small fee and realign the margins and reduce rates if both these strategies negotiation and conversion fail the borrower should consider moving the loan to more competitive banks he says depending on your interest rate loan amount and balance tenure balance transfer could work out to be a better option compared to conversion if you are willing to be patient with the laborious documentation process for instance assuming a 1 conversion fee on an outstanding loan of rs 4754960 will work out to rs 53427 including service taxes in contrast the cost of switch to another lender including processing fee stamp duty registration fees and other fees will work out to rs 22746 according to home loan advisors so if the current applicable rates offered by the new lender and your existing lender are the same switching might make more sense some lenders charging slightly higher rates than their competitors are offering 1 cash back if the emi payment is made through auto debit from an account maintained in the same bank one should opt for such offers to save money also this will be a better option than switching over to some other bank as the effective rate could work out to be cheaper than lower rates offered by other banks says kulkarni