Gen Z Home Loans Up 86%: Can You Afford It at 25?

Young Indians aged 25–30 are taking home loans at record speed. But buying a home early sounds great until you do the EMI math on an entry-level salary. Here's what to check before you sign.

Here's what happened: Home loan borrowers in the 25–30 age bracket grew 86% over two years, showing Gen Z is entering real estate far earlier than previous generations did.. Falling ticket sizes in tier-2 cities, rising parental co-borrowing, and aggressive bank outreach to young salaried professionals are together driving this surge.. While early homeownership builds long-term equity, young borrowers face higher income volatility, thinner savings buffers, and 20-year repayment commitments starting at entry-level salaries..

What you should do: Calculate your EMI-to-income ratio before applying — keep total EMIs (home + any other loans) below 40% of your monthly take-home pay.. Check your CIBIL score at least three months before applying; a score above 750 qualifies you for the lowest advertised rate and can save ₹3–6 lakh over the loan tenure.. Save a down payment of at least 20–25% of the property value — borrowing a larger portion increases your EMI burden and leaves no financial cushion for job changes or emergencies..

Add a co-applicant parent or spouse with income — it raises your eligible loan amount and can get you a marginally lower rate, since combined repayment capacity reduces the lender's risk.