Home Loan EMIs Fall, But Hidden Costs May Challenge Buyers

With the Reserve Bank of India easing policy rates, home loan equated monthly instalments (EMIs) are expected to fall, a move that is likely to cheer prospective homebuyers. But lower monthly payments may not tell the full story. Property prices have been inching upward across metro and sub-urban areas, and beneath the surface lie significant costs that often go unaccounted for in a buyer’s initial calculation.

For many Indians, a house remains more than just an asset. It’s an emotional capital. But emotions aside, having financial clarity is essential. A mid-range home listed at Rs 60 lakh in a location like Noida may seem affordable until one includes ancillary charges. Stamp duty and registration alone can push the figure up by Rs 5 lakh. Add renovation expenses often and the actual outlay quickly rises to Rs 70 lakh.

What complicates matters further is the structure of home loans. Charges like stamp duty and registration aren’t typically covered by lenders. Moreover, the buyer must arrange 10–20 per cent of the property value as a downpayment upfront. Liquidity becomes critical, especially for first-time buyers.

Then there’s the matter of location. Affordability often drives people to buy in distant suburbs, but the cost of commuting, both financially and personally, adds up. Consider this: owning a house in Noida, but working in Delhi, might mean daily compromises on time, fuel, and peace of mind. In many such cases, renting near the workplace offers more practical value than ownership far away.

Ultimately, homebuying is not about market trends or peer pressure. It’s about financial readiness, geographic practicality, and personal needs. A lower EMI might tempt buyers, but a home is a long-term commitment that demands more than just an attractive interest rate.