Comparing two mortgage illustrations for a ₹120,200,000 purchase near Bengaluru

G

GreenSignal

Homeowner
Established
The cheaper-looking rate is attractive, but I’m not convinced it represents the cheaper loan. I’m comparing two illustrations for a property near Bengaluru priced at about ₹120,200,000. One describes a 4.01% rate fixed for 30 years, yet its fees and loan-to-value band narrow the apparent advantage.

The lenders have used different assumptions, which makes their quoted totals difficult to line up. Should I rebuild both calculations over the same expected ownership period, including interest and all fees, rather than rely on APR? I also want to test what happens if we repay early or refinance, because portability restrictions and exit charges could matter if our plans change.
 
APR is a useful check, but it should not decide this by itself. My concern would be the cost of changing course, since an early-repayment restriction is harder to undo than a small difference in monthly payment.

Choose a realistic comparison date and calculate both loans to that point using the same amount borrowed and the same payment schedule. Add upfront charges, financed fees, interest paid and any cost of repaying or refinancing on that date. The 30-year figures matter only if you genuinely expect to keep the loan that long.
 
What loan-to-value ratio is each illustration using, and do you expect to keep this property for the full term? A small difference in borrowing amount or LTV tier could explain why the apparently cheaper rate loses its advantage. Your likely holding period also determines how heavily to weight portability and early-repayment costs.
 
Before comparing anything else, I would ask each lender to confirm that 4.01% is fixed for the entire 30 years, rather than a 30-year loan tenure with the rate fixed only for an initial period. The wording matters because a later reset would introduce a completely different risk. Use the written repayment schedule rather than the advertisement.
 
I partly disagree with using expected holding period as the main comparison. People often move or refinance later than planned, so a short five- or seven-year model can make a fee-heavy loan look better than it is. I’d calculate at least three exit dates and include a full-term case. That shows whether the result depends on one optimistic refinance assumption.
 
Monthly affordability deserves its own test. Even if one quote has the lower total cost, check the required payment against a less comfortable month and any other large property expenses. Also model what happens if a fee is financed rather than paid upfront; it then affects both the balance and the interest calculation.
 
For portability, ask what it actually means in these offers. Can the existing rate and balance move to another property, or would the replacement property and borrowing be assessed again under whatever criteria apply then? A portability label has limited value if using it depends on conditions that are not shown in the illustration.
 
I’d make one simple table: upfront cash, monthly payment, balance remaining at each possible exit date, interest paid to that date, and any repayment or exit charge. That avoids mixing an APR from one lender with a cash-cost figure from another. Keep the 4.01% headline in the table, but don’t let it decide the result by itself.
 
Early repayment can change the choice even if you do not expect to sell. Ask both lenders to illustrate a partial repayment and a full payoff at the same dates. The relevant terms may depend on the specific agreement and jurisdiction, so I would get those figures directly from the lenders rather than assuming that “fixed” means the same restrictions in both offers.
 
Once the assumptions are aligned, I’d choose based on two outputs: the cost at the most plausible exit date and the payment you can comfortably sustain. Then use the full 30-year total as a stress case, not a prediction. If the offers remain close, clearer early-repayment and portability terms may be worth more than a tiny difference in the calculated cost.
 
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