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Smart Mortgage Strategy Engine

Don't just calculate your mortgage. Strategize it.

Compare how different terms multiply interest and discover how prepayments can slice years off your loan and save you thousands.

Strategy Advisory Engine

Affordability Zone Safe

🟢 Safe (<30%) 🟡 Stretch (30-45%) 🔴 Risky (>45%)
Recommended Term -- Years

Monthly Payment
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Total Interest
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Total Cost
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Interest Saved
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The Term Heatmap evaluates common mortgage terms. Green options are highly cost-efficient or highly affordable, whereas red options present severe interest multiplication or budget risks. Click any card to apply that term immediately.
Pro-Tip: Click on any coordinate point on the line charts below to set that specific term in years! Look at how total interest scales exponentially compared to a dropping monthly payment.

Monthly Payment

Click points to change tenure

Total Interest

Higher term = Interest Trap

Current Choice (-- yrs)

Monthly Payment --
Total Principal --
Total Interest Cost --
Total Repayment --
Interest % of Loan --
Payoff Duration --

Alternative Choice (-- yrs)

Monthly Payment --
Total Principal --
Total Interest Cost --
Total Repayment --
Interest % of Loan --
Payoff Duration --

Prepayment Allocation Breakdown

Prepayment Strategy Insight

Adding monthly or annual prepayments reduces the principal balance directly, causing interest to compound on a much smaller number. This can double the speed of your repayment journey.

Loan Composition (Prepaid Case)

Principal
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Interest
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Strategy Observations

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Knowledge Base & Strategy FAQ

Why does a longer term cost so much more?
When you take a 25 or 30 year mortgage, your monthly payments are lower because they are spread out. However, because interest is computed monthly on the outstanding balance, you pay interest on a huge principal amount for a very long time. For a 30-year mortgage at 6.5%, you end up paying nearly 1.3 times the loan amount in interest alone.
How do prepayments save interest?
Regular mortgage payments are structured so that in the early years, the majority of your payment goes toward interest, and very little goes toward principal. When you make a prepayment, 100% of that extra amount goes directly to reducing your principal balance. This instantly drops the principal amount on which next month's interest is calculated, triggering a compounding saving effect.
Should I choose Term Reduction or Payment Reduction?
If you make a prepayment, banks usually ask if you want to reduce your term or reduce your monthly payment. Reducing your term is mathematically vastly superior—it keeps your payment the same, allowing you to pay off the principal aggressively and save the maximum amount of interest. Payment reduction is only recommended if you are facing cash flow constraints and need immediate relief on monthly expenses.
What is the Step-Up strategy?
As your career progresses, your income typically increases. By committing to increasing your monthly prepayments by a fixed percentage (e.g. 5% or 7% annually) in line with your salary raises, you match your payments with your capacity, turning a standard 30-year mortgage into a highly efficient 12 to 15-year mortgage.