Comparing a 5.36% three-year fixed quote for a Mumbai purchase

T

teaAndBridge

Mortgage adviser
Established
I’m comparing mortgage offers for a Mumbai property purchase around ₹44,670,000. One quote is 5.36% fixed for 3 years. Its advertised rate initially looked more attractive, but the arrangement fees and loan-to-value tier narrow the difference.

Would you compare lenders using APR, interest paid during those three years, or total cash outlay including fees? The monthly-payment gap is manageable, so early-repayment terms and portability may matter more. I’m also wary of assuming refinancing will be straightforward when the fixed period ends.
 
For a three-year decision, I’d compare total payments and upfront fees over exactly those three years, then include the outstanding loan balance at the end. Looking only at interest or APR can miss differences in how quickly principal is repaid. I’d also run a separate affordability case for a higher payment after the fixed rate resets.
 
That makes sense. The ₹44,670,000 is the purchase price, so I still need to normalize the offers using the same final loan amount and LTV. I was treating the end balance as secondary, which could make a low monthly figure look better than it is.

How would you value portability if the lender can still reassess eligibility at the time?
 
I wouldn’t assign portability much monetary value unless the written terms make the conditions clear. It may still be useful, but it isn’t equivalent to a guaranteed transferable rate.

I also disagree slightly with focusing only on the three-year cash total. If one offer leaves a meaningfully different balance or has restrictive early-repayment terms, those consequences extend beyond the fixed period. Compare both the three-year cost and the position you would be in on the reset date.
 
Put each offer into one sheet with the same loan amount, start date and assumed refinance date: upfront fees, monthly payments, principal remaining after 3 years, early-repayment costs, and any portability conditions. Then add a second scenario where refinancing is unavailable and the rate resets. That should show whether the small monthly saving is worth giving up flexibility. Any unclear fee or condition should be confirmed with the lender in writing, since the exact terms can vary.
 
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