Published on Oct 22, 2021Updated on Oct 6, 2026
Owning a property is a dream come true for many. But the reality of the commitment strikes when you start with your monthly installment payments.
A mortgage loan is a long commitment, usually up to 20 years or more. Even a loan against property could go up to 15 years. Thus, such loans require planning and thought.
Obviously, it is a long-term commitment for a large amount that you cannot get out of with the swipe of a credit card. So, how to repay the mortgage loan that leaves you with more financial flexibility?
There are a few simple steps that can be used to shave off years on your mortgage loan repayments. We will take a look at the most convenient ways how one can repay a mortgage loan fast in this article.
Most mortgage loan repayment tenures start from 10 years, going up to even 30 years in some cases. That is a long time to continuously service a loan that is for a single purchase.
Instead of going for the highest tenure period, try and opt for the lowest option, if your budget permits it at the very onset. In such cases, you will be on track to complete the repayment of your mortgage loan within a period of 10 years. Use a loan against property EMI calculator to select a tenure so that the EMI fits within your budget. It would be wise to also factor in other expenses as the years go on, such as children’s education and so on.
The RBI has recently permitted zero foreclosure / part-payment charges on mortgage loans. SMFG India Credit allows customers who have taken mortgage loans for non-business purposes on floating rates of interest to use this option. This will automatically reduce your repayment tenure significantly. It will also save you additional funds towards the overall interest payment on your mortgage loan.
Property purchase is an expensive undertaking for most individuals. Not only does it come with monthly EMIs but also demands a down-payment ranging from 5% to 15%. If you are focused from the moment that you decide to purchase a property, try and save enough to make a down payment that exceeds 20% or more of the property price.
This ensures that your debt obligation is instantly lower. This brings down your repayment tenure on your mortgage loan considerably.
You can take this a notch higher by opting for a high monthly installment amount. You can easily use the mortgage loan EMI calculator to check out the amount of the installment that will be required to pay on the loan. Double that figure and you will pay off the mortgage loan in literally half the time.
If you have a 30-year mortgage loan consider refinancing it to a shorter-term repayment model. This can be a 15 year period that will help you sail through the mortgage loan a lot more quickly. As a matter of fact, you may be able to avail a better rate of interest on the mortgage loan when you pair it with a short-term refinancing option.
In the long run, you end up saving on interest payments. While the monthly installments on a 15-year mortgage are not double that of 30, it is comparatively a lot less. If you are not fully convinced, why not pull up a mortgage loan EMI calculator that is available on the SMFG India Credit website to see if the numbers fall into place by refinancing your mortgage loan on a 15-year tenure.
If a 15 year period seems like a tightrope, consider a 20-year schedule instead. At the end of the schedule, you will be left with additional funds to spend on achieving life goals.
Must Read: Different Types of Mortgage Loans In India
Be it your income tax refunds or a holiday bonus, a sure shot way to reduce your mortgage loan liability is to use these unexpected earnings to pay off the loan quickly. This will not impact your monthly budget or expenses in any way.
While this method may not be as regulated as the other three, it undoubtedly offers convenience to anyone who is not able to commit to a structured prepayment approach on a defined schedule. If your lending partner does not charge a penalty on ad hoc part-payments or pre-payments then you should definitely opt for this strategy. Simply inform the lender that extra payments may be coming through at various times during the year.
While we have answered how to repay a mortgage loan fast, it is also important to understand the reason behind doing so. By paying off your mortgage loan quickly, the extra money in your hands can be put into use to reach key goals in your life.
Whether it is building up a retirement corpus, establishing a higher education fund for your child or going on a luxury holiday, those additional funds that you save can be effectively used for these purposes. While your property purchase is high on the priority list, these key life goals are equally important too.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
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