Are there any tax implications when transferring a home loan balance?

There are no major tax implications or changes when you transfer your home loan balance from one lender to another. The key aspects to note are:

• When you switch lenders, there is no change in ownership of the property or the purpose of the loan. So, tax benefits remain intact.
• Even if you opt for a lower interest rate or longer tenure, the tax benefits eligibility does not change.
• Retain the tax deductions on principal and interest amounts on your transferred home loan amount under relevant sections of the Income Tax Act.