A mortgage is a home loan secured by the property. Price = down payment + loan. Tenures are long, so the EMI must fit your budget.
Besides the price, there are one-time costs (stamp duty, registration, fees) and regular costs (maintenance, tax, repairs). List them all.
A longer tenure lowers the EMI but raises total interest. Balance a comfortable EMI against total cost.
Floating home loans can move with the repo rate. Prepaying reduces principal and interest. Check charges and balance your goals.
Renting and owning each have costs and benefits. Compare monthly costs, flexibility, stability and cash. There is no single right answer. Check local rules.
What you'll learn
Lesson 14.1
A Loan for a Home
Gita, a teacher, wants her own small flat. It costs ₹30,00,000. Her savings: ₹6,00,000. Is that even possible?
You'll learn: The basics of a home loan.
What Is a Mortgage? A mortgage is a loan secured by the property you buy.
The Three Numbers: Price = down payment + loan.
Tenure: A long tenure means a long commitment. Make sure the EMI fits.
Lesson 14.2
The Costs Beyond the Price
Gita saved exactly the 20% down payment. Then the lawyer said: 'You'll need more.' More? For what?
You'll learn: The real cost of owning a home.
One-Time Costs: Buying has one-time costs beyond the price. Rates differ by state.
Keeping the Home: Add upkeep to the EMI to see the true monthly cost.
The Total Cash Needed: List all costs, not just the down payment.
Lesson 14.3
The Long Tenure Trade-off
Two loans of ₹10,00,000. One has an EMI of about ₹12,700, the other about ₹9,000. The second looks cheaper. Is it?
You'll learn: The trade-off between EMI size and total cost.
Two Tenures: A longer tenure lowers the EMI.
The Total Paid: A smaller EMI over more years costs more in total.
Finding Your Balance: Balance a comfortable EMI against the total cost.
Lesson 14.4
Rates and Early Repayment
Gita got a bonus of ₹50,000. Should she spend it, save it, or put it toward her home loan?
You'll learn: How rates and prepayment affect a home loan.
A Rate That Moves: Floating home loans can cost more or less as the benchmark moves.
Prepayment: Prepaying reduces principal and interest. Check the charges.
Choosing Where Extra Money Goes: Balance safety, debt reduction and life.
Lesson 14.5
Rent or Buy?
Gita's cousin says: 'Buy, rent is money thrown away.' Her friend says: 'Rent, owning ties you down.' Who's right?
You'll learn: How to think about renting vs owning.
Counting Costs: Compare monthly costs, but that's only one part of the picture.
What Else Matters: Flexibility, stability, cash and uncertainty all matter.
Many Paths: Many paths exist. Check local rules.
Final challenge
Home Smart
Gita's home journey taught you a lot. 10 quick questions!
Try a question
From lesson 14.1: A Loan for a Home
A mortgage is...
A tax
A type of insurance
A loan to buy property, secured by the property
Show the answer
A loan to buy property, secured by the property. It's a secured loan for property.
Learn it the Yukti way
Every lesson is a short story told in scenes, with a quick question after each idea and a review at the end. Wrong answers come with a clear explanation, and Practice brings them back until they stick. Examples use Indian rupees and Indian rules, and show in your own currency in the app.
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