Considering purchasing a home this year? You’re not alone, but you may be clinging to some old-school advice. The Indian real estate sector in 2025 has changed significantly, and it’s time to debunk some popular myths.
Let’s debunk the top 5 myths of purchasing a home in India in 2025 and what you really need to know before making the leap.
Myth 1: Wait for Home Loan Rates to Come Down
Reality: Although we’d want to see lower rates, India’s home loan rates in 2025 are hovering around 8–9.5%, and top lenders give only marginal relaxations to highly credit-worthy borrowers. Experts point out that while rates might fall slightly, the big dip this year is unlikely.
If you find a property you like and it fits your budget, it’s wise to proceed. You can always refinance later if rates improve.
Myth 2: You Need to Pay 20–30% Down Payment
Reality: RBI regulations require a minimum 10–25% down payment (based on property price), but most first-time buyers wrongly assume they need to pay 30% or more as a down payment. Banks actually fund 75–90% of the property price in reality.
And, initiatives such as PMAY (Pradhan Mantri Awas Yojana) and state housing subsidy can lower your down payment.
Myth 3: Only Individuals with 800+ CIBIL Scores Can Obtain a Loan
Reality: Though a CIBIL score of 750+ provides you with the best rates, most banks offer home loans to applicants with scores ranging from 700–750, but at a higher interest rate. If your score is between 650–700, some NBFCs and co-lending platforms might still provide you with lending options.
Get your CIBIL score checked prior to applying and enhance it with small measures such as paying off credit card bills or merging current loans.
Myth 4: Always Buying is Better Than Renting
Reality: Maybe not. With prices of property increasing in metros and EMIs being higher because of interest rates, renting could be a more financially viable option for now for people who want to shift within 2–3 years or are not yet sure where their career is headed.
Myth 5: The Indian Real Estate Market Will Crash Soon
Reality: India’s real estate market has exhibited consistent, long-term growth since 2023, particularly in tier-1 and tier-2 cities. With growing incomes, urbanisation, and infra projects such as metro corridors, data centres, and expressways, property demand continues to be robust.
Industry reports predict 5–7% average price appreciation in 2025 in residential segments, with affordable housing being the driving force.
The present property market has more tools and opportunities than ever before from online property websites and virtual viewings to house loan applications and online sanction letters. Don’t let myths or outdated advice hamper you.
Evaluate your finances, look into current homebuyer schemes, review your credit score, and make an informed decision based on the realities of today’s market.
