Your first home loan is one of the biggest financial commitments you'll ever make. In 2026, with RBI's repo at 5.75% and banks competing hard, first-time buyers have more leverage than ever. Here's how to use it.
1. Start With a Credit Score Above 750
A CIBIL score of 750+ typically earns you a 25–50 basis-point lower rate. On a ₹60-lakh loan over 20 years, that's ₹5–10 lakh saved in interest.
2. Compare Rates Across Top Lenders
2026 indicative home loan rates: SBI 8.25%, HDFC 8.35%, ICICI 8.40%, Axis 8.45%, Bajaj Housing 8.50%. Always ask for the processing fee waiver — most banks negotiate.
3. Choose the Right Tenure
A 20-year tenure has lower EMIs but ~ 2× the interest of a 10-year tenure. Sweet spot: pick a tenure where EMI ≤ 40% of your net monthly income, then prepay aggressively.
4. Claim Every Tax Benefit
- Section 24(b): up to ₹2 lakh/year interest deduction.
- Section 80C: up to ₹1.5 lakh/year principal repayment.
- Section 80EEA: additional ₹1.5 lakh interest deduction for affordable housing.
5. Check PMAY-U 2.0 Subsidy
Launched in 2024, PMAY-U 2.0 offers up to ₹1.8 lakh interest subsidy for first-time buyers with household income under ₹9 lakh. Apply during loan disbursal.
6. Part-Prepay Every Year
One extra EMI per year on a 20-year loan cuts your tenure by ~4 years. Use your bonus wisely.
7. Save Your Brokerage — Turn It Into Down Payment
If you buy via HomePage (zero brokerage), the ₹80,000–₹1.5 lakh you'd otherwise pay a broker can directly increase your down payment — reducing your loan principal and EMI.
Find your first home on HomePage with zero brokerage and connect with partner banks from inside the app.