Types of Mortgages Compared in India 2026

Choosing the right mortgage type in India can save you tens of thousands over the life of your loan. Here is how the main options compare.

Fixed Rate Mortgages

Fixed rates lock in your repayments for a set period. You get certainty but less flexibility. Best if you prefer predictable budgeting.

Variable Rate Mortgages

Variable rates move with market conditions, influenced by the Reserve Bank of India’s benchmark rate. More flexible, but repayments can increase if rates rise.

Split Loans

Split loans combine fixed and variable portions, giving you partial certainty with some flexibility. A practical middle ground for many borrowers.

Interest-Only Loans

Interest-only loans have lower initial repayments but you are not reducing the principal. Primarily used by investors for tax and cash flow reasons.

Which Type Suits You?

Your choice depends on your risk tolerance, plans, and financial situation. A mortgage broker can help you compare options across multiple lenders.

Use our mortgage calculator to model different scenarios. Read our mortgage guide for comprehensive information, or check our FAQs.