Understanding loan eligibility
What lenders typically look at when you apply, and practical steps to strengthen your application.
A balance transfer moves your outstanding loan to a new lender, usually for a lower interest rate. It can save money, but only if the savings outweigh the costs.
Look at the whole cost
Compare the total you would repay on your current loan with the total on the new loan plus processing fees and any other charges. A small rate difference on a loan with only a few years left may not cover the fees.
Timing matters
Interest is front-loaded in most loans. Transferring earlier in the tenure usually offers more potential savings than transferring near the end.
Ask your current lender first
Some borrowers find that their existing lender is willing to revise the rate. It is worth asking before you move.
Our balance transfer calculator compares both loans over the same remaining tenure and includes the fees you enter.