Top 5 Mistakes to Avoid When Applying for a Home Loan
CardKhoj Editorial Team 9 min read22 March 2026
Financial Disclaimer
Disclaimer: This information is for educational purposes only. Always consult a certified financial advisor before making any financial decision.
Costly Mistakes That Add Lakhs to Your Home Loan
A home loan is the biggest financial commitment most Indians make. These 5 common mistakes can cost you ₹5-20 Lakhs extra over the loan tenure.
5 Mistakes and Their Cost
| Mistake | Extra Cost | Solution |
|---|---|---|
| Not comparing rates | ₹3-10L | Get quotes from 4+ banks |
| Choosing max tenure (30 yrs) | ₹20-30L | Pick 15-20 years if affordable |
| Ignoring processing fees | ₹50K-1L | Negotiate or ask for waiver |
| Skipping home insurance | Entire property value | Get ₹500/yr insurance |
| No prepayments | ₹5-15L | Prepay 5% annually |
Pro Tips
✅ Always choose floating rate (currently lower than fixed). ✅ Set up auto-debit for EMI. ✅ Keep all property documents safely. ✅ Get NOC immediately after loan closure.