Archive · 23 Sep 2025
Tax Hack: How to Save ₹65 Lakhs on a Home Loan
Instead of putting a lot of money down on a house, this strategy suggests putting down less and investing the rest.
This frees up money to grow in investments, which can then be used to pay your mortgage.
By investing a portion of the money, the cost of the house can be lowered over time.
The strategy involves investing the extra money into the market while paying down the mortgage.
It's crucial to remember that this method comes with risks, as returns are not guaranteed.
A financial strategy saved a client ₹65 lakhs on a ₹1 crore home loan.
The strategy involved adjusting the down payment and using a Systematic Withdrawal Plan (SWP).
Instead of a ₹50 lakh down payment, the client paid ₹20 lakh and invested the rest.
₹30 lakh was invested in equity mutual funds and used an SWP to supplement monthly payments.
The client saved money because the investments grew and reduced the effective cost of the loan.
- Who
- Homebuyers
- What
- A strategy to save money on a home loan by adjusting down payment and investment
- When
- Over 25 years
- Where
- Not specified
- Why
- To reduce the overall cost of a home
Conservative Plan
Alternative Plan
Down Payment Strategy
Conservative Plan
Put down a larger down payment (₹50 lakh) to reduce loan amount and EMI, providing a safer but less investment-focused approach.
Alternative Plan
Make a smaller down payment (₹20 lakh) and invest the remaining funds to generate potential returns and offset the loan's cost.
- Initial Home Value
- ₹1 crore
- Alternative Down Payment
- ₹20 lakh
- Alternative Loan
- ₹80 lakh @ 8% for 25 years
- Monthly SWP Withdrawal
- ₹25,000
- SWP Investment
- ₹30 lakh in equity mutual funds
- Savings Over 25 Years
- ₹65 lakh