Got a home loan? Here are 6 brutal truths your bank will never tell you but should

Got your home loan sanctioned? You’re not in the clear yet. Sujit Bangar, founder of TaxBuddy.com, says borrowers often discover hidden costs and pressure tactics only after the approval. 

In a LinkedIn post, he shares six home loan hacks your bank relationship manager (RM) probably won’t tell you.

1. Demand a full cost breakup — it's your right
“Banks don’t disclose all costs upfront,” Bangar writes. Charges like processing, legal, technical, and valuation fees often show up only after sanction. But under RBI rules, banks must provide a detailed cost sheet. “Always ask for a breakup before signing,” he advises.

2. Don’t fall for long-term insurance sold for ‘tax saving’
Bangar says RMs typically push expensive life insurance policies days before disbursement — claiming it’s “compulsory.” It’s not. “Most people already max out Section 80C with the home loan itself,” he notes. And with more taxpayers shifting to the new tax regime, the pitch adds little value. His tip: apply to 2–3 banks at once to avoid getting cornered late in the process.

3. Use joint ownership to double tax benefits
“Take the loan and property jointly,” Bangar suggests. Each co-owner can claim ₹1.5 lakh under Section 80C and ₹2 lakh under Section 24. That’s up to ₹7 lakh in deductions — legally allowed.

4. Register in a woman’s name to save on stamp duty
Some states like Delhi and Haryana offer lower stamp duty for women buyers. “On a ₹1 crore property, this could mean ₹2 lakh in savings,” says Bangar. But he cautions buyers to be aware of the succession risks and plan accordingly.

5. Always verify on the RERA portal
Skipping this step could cost you, Bangar warns. “It shows pending approvals, litigation, and promoter history,” he says. Buyers should search the project on their state’s RERA website before committing.

6. Never take possession without an Occupancy Certificate
“Moving in without an OC can lead to penalties or eviction,” Bangar writes. He urges buyers to escalate delays via RERA if necessary. “No OC? No keys.”

The fine print in home loans can be expensive. “Your RM won’t tell you all this — but you must ask,” Bangar says.