Which One Saves You More on Interest?

Resale vs. New Launch: Which One Saves You More on Interest?

🏡 Thinking of buying a home? One of the biggest hidden costs is interest payments on your loan. Whether you choose a Resale Mortgage or a New Launch Progressive Payment Scheme, the way your loan is structured can make a huge difference in how much you pay over time. Let’s break it down.

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Resale Property Mortgage

✔ Full loan disbursed immediately upon purchase.

✔ Monthly repayments include principal + interest from day one.

✔ Interest is charged on the entire loan amount upfront.

💰 Example (Property Price: $1.5M, Loan: $1.125M, Interest: 4%, Tenure: 25 Years)

- Monthly Repayment: ~$5,940

- Interest Paid in First 5 Years: ~$180,000

- Total Interest Paid Over 25 Years: ~$656,000

📌 Who Should Buy Resale?

✔ Need a home immediately.

✔ Can manage higher monthly repayments.

✔ Want certainty in loan structure.

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New Launch Progressive Payment

✔ Loan is disbursed in stages as construction progresses.

✔ Pay only interest on the disbursed amount before TOP.

✔ Full mortgage repayment only starts after completion (TOP), typically 3-5 years later.

💰 Example (Same Property, Loan, Interest & Tenure)

- During Construction (5 Years): Interest payments remain low, totaling only ~$30,000.

- After TOP: Full mortgage begins, and the total interest over 25 years is ~$635,000.

- **Total Savings Compared to Resale:** ~$21,000.

📌 Who Should Buy New Launch?

✔ Want to save on interest during the construction phase.

✔ Prefer lower initial payments and better cash flow.

✔ Can wait 3-5 years before moving in.

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Key Differences in the First 5 Years

🔹 Resale Buyers: Pay full mortgage repayments immediately, accumulating ~$180,000 in interest within 5 years.

🔹 New Launch Buyers: Pay only small interest on disbursed amounts, totaling ~$30,000 in 5 years.

🔹 **Potential Savings with New Launch:** ~$150,000 saved in the first 5 years alone.

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Which One Should You Choose?

✔ Buy Resale If:

- You need a home right now.

- You want certainty in your mortgage structure.

- You don’t mind paying more in interest upfront.

✔ Buy New Launch If:

- You want lower initial costs and better cash flow.

- You prefer to save on interest during the construction phase.

- You can wait 3-5 years for your home.

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Final Thoughts

The key difference between resale and new launch is how interest is structured. Resale buyers start paying full mortgage immediately, while new launch buyers save on interest during construction. Over time, this adds up—**up to $150K in savings in the first 5 years alone**.

If you prioritize affordability, flexibility, and long-term savings, new launch properties may be the better choice. But if you need a home now, resale is the way to go.

Looking to Buy or Sell your home? Have some questions for us?

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