Home loans typically run for 15-30 years. A small mistake can cost you lakhs over the loan's lifetime.
1. Not comparing lenders
Even a 0.25% difference in interest rate can save you ₹2-3 lakhs over 20 years.
2. Choosing longer tenure
A 30-year loan will cost you 2-3x the original amount in interest. Opt for 20 years or less if possible.
3. Ignoring processing fees
These can be 0.5-2% of the loan amount. Always negotiate.
4. Forgetting about insurance
Home loan insurance protects your family in case of unforeseen events.
5. Not making prepayments
Even small annual prepayments can cut years off your loan.