Comparing a 3.35% 20-year fixed mortgage quote near Bengaluru

sasha_keel

Mortgage adviser
Comparing the headline rate alone feels misleading, but comparing the full 20-year cost may be just as unhelpful if I refinance or repay early. These are two mortgage illustrations for a purchase near Bengaluru at around ₹63,880,000, and one shows 3.35% fixed for 20 years.

Fees, the applicable loan-to-value tier and differing lender assumptions materially alter the result. Should I compare interest, charges and the remaining balance over the period I realistically expect to keep the loan, while testing monthly payments separately? I also need to understand portability and early-repayment costs before choosing.
 
I would compare both loans over the same period you realistically expect to keep them. Use identical loan amounts and dates, then add interest and fees and note the outstanding balance at the end of that period. APR can be useful, but only when the underlying assumptions match. Keep the highest monthly payment visible as a separate affordability test.
 
Is ₹63,880,000 the purchase price or the amount being borrowed? Also, are the arrangement fees paid upfront or added to the loan, and does “fixed for 20 years” cover the entire mortgage term? Those details could change the comparison substantially, especially if each lender placed you in a different LTV tier.
 
I wouldn’t describe all cash paid as a cost, because part of each payment reduces principal and becomes equity. At a five- or ten-year comparison point, look at fees plus interest, but also compare the remaining balances. Two loans can have similar payments while paying down principal at different speeds.
 
A simple table should expose the inconsistent assumptions. For each lender, list: amount advanced, fees paid upfront, fees financed, monthly payment, total interest, balance after 5 and 10 years, and any early-repayment charge at those points. Then run one scenario where you keep the loan for all 20 years and another where you refinance or sell earlier.
 
I’d put less weight on portability than early repayment unless moving during the term is a real possibility. Portability may still depend on the future property and a fresh assessment, so it is not necessarily a guaranteed escape route. Ask each lender to state exactly when repayment charges apply and whether the quoted 3.35% remains fixed for the full 20 years.
 
Before choosing, request revised illustrations using the same loan amount, LTV, payment date and treatment of fees. Also confirm whether 3.35% is the nominal rate or another quoted measure. Once those inputs match, compare five-, ten- and twenty-year outcomes rather than relying on one headline figure. If the rate truly lasts for the whole term, rate-reset risk matters less, but refinance assumptions still matter if you expect to exit early.
 
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