Why Mortgage Planning Can’t Be Guesswork
A ₹50 lakh loan at 8.5% vs. 9% costs ₹5.2 lakh extra over 20 years. Teddy Jewellers’ tool helps you:
- Compare Lenders: SBI (8.4%), HDFC (8.7%), or PNB (8.6%) – see total costs side-by-side.
- Plan Prepayments: Discover how ₹10,000/month extra can save ₹18 lakh in interest.
- Avoid Overborrowing: Use the 28/36 rule (28% income for EMIs) to stay budget-safe.
Key Features for Homebuyers & Investors
1. Dynamic Loan Breakdown
- Interest vs. Principal: Visualize how ₹35,000 EMI shifts from 70% interest (Year 1) to 70% principal (Year 15).
- Tax Savings: Auto-calculate Section 24 and 80C deductions under old/new tax regimes.
2. Amortization Schedule Deep Dive
| Year | Principal Paid | Interest Paid | Balance |
|---|---|---|---|
| 1 | ₹1,20,000 | ₹4,10,000 | ₹58,80,000 |
| 5 | ₹8,50,000 | ₹15,20,000 | ₹51,50,000 |
Case Study: Saving ₹27 Lakh with Strategic Prepayments
The Challenge
Rahul took a ₹75 lakh home loan at 9% for 20 years (EMI: ₹67,490). He wanted to reduce interest without straining his budget.
The Solution
- Used the calculator to simulate ₹15,000/month extra payments starting Year 3.
- Added a ₹2 lakh lump sum from bonuses in Year 5.
- Switched to a lender offering 8.6% in Year 7 via the app’s rate tracker.
The Result
- Loan tenure reduced from 20 → 13 years.
- Interest saved: ₹27 lakh.
Step-by-Step Guide to Using the Tool
Step 1: Input Loan Details
- Loan Amount: ₹50,00,000
- Interest Rate: 8.5%
- Tenure: 20 years
Step 2: Customize Scenarios
Use sliders to:
- Increase EMI by 10% annually.
- Add one-time payments (e.g., Diwali bonus).
- Compare fixed vs. floating rates.
Step 3: Analyze & Export
Download PDF reports showing:
- Total interest paid over time.
- Break-even points for refinancing.
- Yearly tax savings.
5 Pro Tips to Slash Mortgage Costs
- Biweekly Payments: Split EMI into fortnightly payments to save 4-5 years of interest.
- Balance Transfers: Refinance when rates drop 0.75%+ – our calculator shows break-even points.
- Offset Accounts: Link savings accounts to reduce interest (common in AU Bank/SBI loans).
Future Updates: AI-Powered Loan Matching
Launching in 2025: Enter your financial profile to get personalized lender matches (lowest rates, minimal fees).
Conclusion: Your Key to Smarter Home Loans
Whether you’re a first-time buyer or property investor, Teddy Jewellers’ Mortgage Calculator turns complex numbers into clear, actionable plans. With prepayment strategies, tax insights, and lender comparisons, financial freedom is just a click away.