Home Loan Hacks: Buying a home is everyone’s dream. But fulfilling this dream requires paying a hefty sum. Sometimes, unforeseen expenses arise. If you take out a bank loan, the real expenses begin after it’s approved. Additional costs like processing fees, valuation charges, legal fees, and insurance can often derail your entire budget.
Sujit Bangar, founder of Taxbuddy, recently shared in a LinkedIn post how homebuyers can avoid these hidden costs by being a little more aware and save lakhs of rupees by making wise decisions.
Keep informed about the cost breakup
It’s worth noting that banks often don’t disclose the full cost details in the initial stages of a loan. After the sanction letter, new charges suddenly emerge—such as processing fees, document verification, valuation, and legal fees. According to Reserve Bank of India regulations, every bank is required to provide a detailed cost sheet to the customer. Therefore, it’s important to request this cost breakdown in writing before loan approval to avoid any unexpected expenses.
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Insurance doesn’t save tax
Loan officers or relationship managers often say that it’s mandatory to purchase life insurance along with the loan, but in reality, it’s not mandatory. Section 80C tax benefits are already available on the home loan principal amount.
In the current new tax regime, purchasing insurance doesn’t offer any special tax benefits. Therefore, instead of succumbing to pressure from a single bank, it’s better to compare offers from two or three banks. This makes it easier to choose the option with the right interest rate and lowest expenses.
Arnim got his Home Loan sanction.
But just a few days before disbursement, his bank RM told him:
“Buying an insurance (worth 4% of home loan) is compulsory.”
Here are 6 Home Loan hacks that your Bank RM never tells you🧵👇 pic.twitter.com/sW351qcifs
— Sujit Bangar (@sujit_bangar) October 28, 2025
Double the tax benefit from a joint loan
If the home and loan are in the names of both spouses or two co-applicants, both individuals receive tax deductions. Under sections 80C and 24 of the Income Tax Act, both individuals can jointly claim a tax deduction of up to approximately ₹7 lakh. This method not only helps with tax savings but also strengthens their credit profile.
Benefits of Buying Property in Women’s Names
Many states have lower stamp duty rates for property purchased in women’s names. This can significantly reduce the overall cost of purchasing a home. For example, a female buyer can receive a direct benefit of approximately ₹2 lakh on a property worth ₹1 crore. However, it’s important to understand the legal aspects related to inheritance and ownership before adding a name.
Check the Project on the RERA Portal
Before any property deal, it’s important to check whether the builder’s project is registered with the Real Estate Regulatory Authority (RERA). Project information, approvals, litigation status, and the builder’s track record can be viewed on the RERA portal. This helps prevent fraud and legal disputes.
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Don’t Take Possession Without an Occupancy Certificate
Before taking possession of a home, ensure that the builder has provided an Occupancy Certificate (OC). Living in the home without one can be legally risky and could lead to future penalties or evictions. If the builder delays, the buyer can file a complaint with RERA.
Save money in the process
Minor terms and hidden fees often slip through the window during the loan process. A little diligence and research can not only save you lakhs of rupees but also give you peace of mind.
