Should You take a Home Loan to Buy a Property?

Should You take a Home Loan to Buy a Property?

Should You take a Home Loan to Buy a Property?

Whether taking a home loan and buying for self-use is a good idea in Mumbai depends on your individual circumstances and priorities. Here are some factors to consider:

Current Interest Rates:

  • Yes, current interest rates are high compared to historical lows. However, they are expected to stabilize or even decrease in the future.
  • If you have a stable income and can afford the monthly payments, you can lock in a fixed interest rate for a longer tenure to protect yourself from future rate hikes.

Property Market in Mumbai:

  • Mumbai's property market is resilient and has historically shown consistent growth. While prices might fluctuate in the short term, the long-term trend is positive.
  • Investing in real estate can be a good way to build wealth and hedge against inflation.

Your Financial Situation:

  • Can you afford the down payment, closing costs, and monthly mortgage payments?
  • Do you have other financial obligations, such as credit card debt, student loans, etc.?
  • Make sure you have a comfortable financial cushion to cover unexpected expenses.

Your Personal Preferences:

  • Do you value the stability and security of owning your own home?
  • Are you tired of renting and dealing with landlords?
  • Consider the additional responsibilities and maintenance costs associated with homeownership.

Alternatives to Buying:

  • Renting can be a viable option if you are not sure about your long-term plans or cannot afford a down payment.
  • Consider investing in other asset classes, such as stocks or mutual funds, if you are looking for higher potential returns.

Here are some resources that might help you make an informed decision:

  • Compare home loan rates and features from different lenders.
  • Use a mortgage calculator to estimate your monthly payments and total loan cost.
  • Consult with a financial advisor to assess your personal financial situation and create a plan.

Ultimately, the decision of whether to buy a home in Mumbai is a personal one. Weigh the pros and cons carefully and make sure you are comfortable with the financial commitment before taking a home loan.

About the author
Sandeep Sadh

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.


Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like,, which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.


  • Residential Leasing
  • Commercial Leasing
  • Residential Home Buying
  • Commercial Property Buying
  • Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

  1. Drafting of the Leave and License Agreements
  2. MOU for Buying/Selling Properties
  3. Drafting Agreement for Sale
  4. Gift Deeds
  5. Computing of Capital Gains with current ready reckoner values
  6. Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on

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