Mortgage Loans: What You Need to Know Before You Buy

When you’re buying a home, a mortgage loan, a type of secured loan used to purchase real estate, typically repaid over 15 to 30 years with interest. Also known as a home loan, it’s the most common way people in India and around the world get into property—without paying the full price upfront. But a mortgage isn’t just a number on a contract. It’s a long-term commitment that affects your monthly budget, credit score, and financial freedom for years.

What makes one mortgage better than another? It’s not just the interest rate. Your down payment, the upfront cash you pay toward the property, usually between 10% and 30% of the home’s price matters a lot. A bigger down payment means smaller monthly payments and less interest over time. Some lenders in Mumbai offer loans with as little as 5% down, but that often means higher rates and extra fees. Then there’s the interest rate, the cost of borrowing money, expressed as a percentage of the loan amount. Fixed rates stay the same for the life of the loan. Variable rates can drop or spike based on market changes. In 2025, rates in India are hovering around 8.5% to 10.5%, depending on your credit and the lender.

Loan terms also vary. A 15-year mortgage gets you out of debt faster and saves you tens of lakhs in interest, but your monthly payments will be higher. A 30-year loan keeps payments low now, but you’ll pay way more in the long run. And don’t forget hidden costs: processing fees, insurance, stamp duty, and prepayment penalties. Some banks charge extra if you pay off your loan early. Others lock you in for years. You need to know what you’re signing up for.

People think mortgage loans are only for first-time buyers. They’re not. Investors use them to buy rental properties. Families refinance to tap into equity. Even retirees use reverse mortgages to stay in their homes. The rules change depending on whether you’re buying a flat in Mulund, a commercial space, or land outside the city. That’s why the posts below cover real cases—from how much you need to earn to qualify, what happens if your income drops, and how credit scores in India affect your approval odds. You’ll see what works, what doesn’t, and what lenders won’t always tell you.