Secondly, the borrower should also take into consideration that if the loan is on floating interest rate, the EMI is bound to change whenever there is a change in the repo rate announced by RBI or any changes in the base rate of the bank.

For an under-construction property the borrower has to pay Pre-EMI, which is only the simple interest on the amount disbursed and it does not have any principal component. Some lenders do allow the borrowers to pay EMI for every portion of loan disbursed and the actual consolidated EMI starts after complete disbursement of housing loan.

Being young, fresh out of college, who should ideally dream of building products that would change the way they live and start getting trapped into servicing their EMI payments and now looked for job security.

Not top MNC jobs have gave them the ability to own a house, drive a nice car and show off to peers or relatives or family or friends was all too enticing. It became a rat race -- after all our social status is gauged by the asset you own -- and 'house' as an asset has a special social status above all other financial assets.