Home Loan Basics for First-Time Buyers
A home loan lets you buy now and pay over many years. It also adds a fixed monthly cost, so plan it carefully.
What banks look at
- Your income and how stable it is
- Existing loans and monthly obligations
- The value and legal status of the property
Numbers to compare
- Interest rate and whether it is fixed or can change
- Loan tenure, since longer tenure lowers the instalment but raises total interest
- Processing fee, insurance and any charge for early repayment
A simple rule
Keep the monthly instalment at a level you could pay even if your income dropped for a few months. Try different down payments and tenures in our home loan calculator to see the effect.
