Rates are falling. Should you refinance your home loan?

Rajeev, great to see that you're actively monitoring your loan health. Most borrowers lock into a loan and forget to review, but the reality is that loans need to be managed, just like investments.

- Himanshu Panchmatiya,

Let's break this down.

Should you switch now or wait?

A 9.25% rate in today's softening environment is on the higher side. If you're being offered a rate reduction of at least 50-75 basis points, switching could make sense, but only if the savings outweigh the switching costs.

Use a simple rule: If your remaining tenure is 10+ years, even a 0.50% drop can lead to substantial savings. But if you're nearing the halfway mark, savings may not be significant unless you reduce EMI and use surplus to prepay.