India’s home loan market is growing more in rupee value than in the number of people borrowing, which means each individual mortgage is getting larger. Reports show that while home loan originations fell in count in FY25, the total value disbursed still rose as average ticket sizes climbed from roughly 29 lakh rupees a few years ago to about 37 lakh rupees nationwide and even higher in big cities. For first‑time buyers who plan to enter the market in 2026, this creates a double squeeze: higher property prices and bigger loans at stake, even in a lower interest rate environment.
Bigger loans, fewer first‑time borrowers
Urban Money and other housing finance studies show that in the top Indian cities, home loan disbursal volumes grew around 10 percent in FY25 while values grew roughly 15 percent. Loans above 1 crore rupees now form around one fifth of total home loan disbursals in these markets, and the average home loan size across metros has risen to about 74 lakh rupees, with women’s average tickets growing fastest. At the same time, some regions report a sharp drop in the number of individual borrowers even as the total mortgage book increases, which means fewer people are taking larger loans and carrying more leverage on each purchase.
Behind this shift is a mix of higher property values, a preference for bigger and better homes and stronger incomes among a segment of salaried and professional buyers. Yet affordable housing remains under strain, with reports noting that ticket sizes for specialised affordable housing financiers are not rising as fast as premium property launches, signalling a widening gap between aspirational and accessible homes. For first‑time buyers, the message is clear: waiting indefinitely in the hope that prices or ticket sizes will drop may not be a winning strategy, but rushing in without a plan can lock them into EMIs that crowd out every other financial goal.
“In today’s housing market, the question is no longer ‘Can I get a loan?’ but ‘Can I carry this loan without carrying stress?’”
How first‑time buyers should respond in 2026
Stepping into a bigger ticket loan in 2026 will require more deliberate design of the entire home buying journey, not just rate shopping. Buyers now need to think in terms of loan to value ratios, co‑ownership, stepped‑up EMIs and buffer planning so that a large mortgage still leaves room for children’s education, business plans or future upgrades. Lenders, especially public sector banks that have gained share in mortgages, are willing to back strong profiles with large exposures but are watching debt to income, stability of employment and overall credit behaviour far more closely than before.
This is where a specialised loan advisor can quietly tilt the deal in favour of the first‑time buyer. By stress testing EMIs at slightly higher rates, comparing PSU and private bank structures, and using tools like joint ownership or staggered disbursals, a good intermediary helps convert an intimidating big ticket loan into a manageable step in a long term financial plan. In a market where housing loans are getting bigger every year, the first‑time buyer who walks into 2026 with a structured plan, clean paperwork and a clear sense of limits will be the one who enjoys the home rather than being owned by the mortgage.
