Outlook Money
Many buyers rush into home loans without understanding the long-term risks. Here are 10 of the most common mistakes people make in their 20s.
Applying for a loan with a low or thin credit score can lead to higher interest rates.
Banks may approve big amounts, but that doesn’t mean your income can sustain them.
Rates vary across banks and NBFCs. Even a small percentage can save a significant amount of money.
Longer tenures reduce EMI pressure but massively increase the total interest which is to be paid.
The first years of a home loan are interest-heavy and delaying pre-payment means losing the most impactful window to reduce total interest.
Borrowers often choose interest rate types without understanding rate cycles or reset clauses.
Booking under-construction homes without checking RERA status, past delays, and approvals exposes buyers to stalled projects.
Stamp duty, registration, interiors, and maintenance add 10–15 percent to the cost. Ignoring these can put on extra financial pressure.