Mortgage quote in India: 4.74% fixed for 3 years — second opinion?

[emery_leases]

The 4.74% fixed rate for three years is driving the choice, but the advertised ranking changes once I use the actual loan-to-value tier and lender charges. The purchase under consideration is in Mumbai at roughly ₹114,800,000.

Should the comparison sheet show total interest and every fee over the fixed period, together with the balance remaining at month 36, rather than relying on APR alone? I am also checking whether charges are paid upfront or added to the loan, what early repayment would cost and what the portability conditions really require. The monthly payment works at 4.74%; my concern is choosing a loan that only looks sensible if refinancing after year three is unusually favourable. Which lender document should contain the assumptions needed to verify this?

 

[writesAndLedger]

Compare cash flows over the three-year period, but also record the outstanding loan balance at month 36. Interest plus upfront and recurring lender fees shows the cost during the fixed period; the remaining balance catches differences caused by repayment structure. I would keep principal repayments separate from “cost,” since they reduce what you owe.

 

[KianCane]

What loan amount and loan-to-value tier are you actually using? The purchase price alone does not reveal that, and a small deposit change might alter the offer. Also, are the arrangement fees paid upfront or added to the loan? If added, they affect both interest and the balance after three years.

 

[loft.balanced]

I wouldn’t dismiss APR, but I disagree that a three-year cash-cost table is enough. APR can be a useful first filter when offers share the same loan term and assumptions. The problem is that your likely holding or refinancing period may differ from the calculation behind it. Use both, then test what happens if you cannot refinance exactly when the fixed period ends.

 

[studyTheRoom]

Portability needs more detail in writing. Does it mean the same loan can move to another eligible property, or only that you may apply for a replacement loan without some charges? Timing, valuation and loan-to-value conditions could matter. I’d also ask what happens to the fixed rate if the purchase and sale do not complete together.

 

[ClearHill]

The rate-reset risk would concern me more than a modest difference in fees. Run the monthly payment at 4.74%, then at several higher rates after year three, using the expected remaining balance. That tells you whether refinancing is optional or essential. If the numbers only work when a new low-rate deal is available immediately, the current offer is less comfortable than it appears.

 

[anika.dean]

A compact comparison sheet should settle this. For each lender list: initial loan, cash fees, financed fees, monthly payment, total interest through month 36, remaining balance at month 36, early-repayment cost under your likely scenarios, and the method used to set the post-fixed rate. Then add a second scenario where you keep the loan beyond three years. That avoids letting either the headline rate or a single APR figure decide everything.