5 Home Loan Mistakes Costing You ₹18L Extra

First-time home buyers often make avoidable loan mistakes — wrong tenure, low down payment, ignoring credit score — that quietly inflate their EMI and total repayment by lakhs. Here's what to watch out for before you sign.

Here's what happened: Choosing a longer tenure lowers monthly EMI but dramatically increases total interest paid over 20-30 years.. A credit score below 750 can push your home loan interest rate up by 0.5-1%, costing lakhs extra over the loan period.. Many buyers underestimate hidden costs — stamp duty, registration, GST on under-construction flats, and processing fees — that strain budgets post-purchase..

What you should do: Check your CIBIL score at least 6 months before applying and clear any outstanding dues or errors to reach 750+.. Compare total interest outgo (not just EMI) across 15-year and 20-year tenures using a free home loan EMI calculator before choosing.. Budget an extra 8-10% of property value for stamp duty, registration, interior costs, and loan processing charges beyond the purchase price..

Making even one extra EMI per year reduces a 20-year home loan tenure by nearly 2 years and saves 7-9% of total interest paid.