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Planning to buy a ₹1 crore home? Experts explain why a 20% down payment is not always right
Mint 37 min ago·10 Sept 2026, 9:43 am
For many Indian homebuyers, a 20% down payment is a standard rule of thumb. However, financial experts suggest this may not always be the most efficient strategy. Making a larger down payment reduces the principal loan amount, which can lower the total interest paid over time. Conversely, putting down less money increases the loan size and the associated interest burden. The decision ultimately depends on your financial situation and goals.
Investors should consider the trade-off between paying down debt and preserving cash. A smaller down payment leaves more money in your bank account, which can be crucial for maintaining an emergency fund or investing in other assets. The key is to balance the desire to reduce interest costs with the need for liquidity and financial security. What matters most is choosing a plan that aligns with your long-term financial health.
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