Growing up, I saw my father stay resolutely debt-free. His career moved us from city to city, and he never took a home loan. Instead, he invested in traditional instruments and eventually used well-timed ESOPs to settle down comfortably at retirement. That worked perfectly in his era.

But times change. If you’re in a stable career and rooted in one city, a home loan can be a practical step toward financial independence if approached wisely.

There are a lot of views against this but this is how I see it:

👉 First, be cautious about the loan-to-value ratio. It’s easy to let the bank finance 85% or more of your home’s cost, but that can lead to a long road of heavy EMIs. Instead, aim to put down 30 to 40% if you can. Sometimes that means starting with a modest property, a 2BHK instead of a 3BHK, or a standalone apartment instead of a luxury community. That way, your loan is smaller, your EMIs are manageable, and you’re not stuck in a debt spiral.

👉 Second, timing matters. If you buy your first home in your late 20s or early 30s, you give yourself a decade to pay it off. This age range is often the most stable part of your career. In your late 20s and 30s, you’re typically well-established, valued by employers, and less likely to face job redundancy. It’s a sweet spot where you have a secure income stream and the runway to clear your loan by your early 40s.

And yes, this is exactly the path I took. Back in 2009, I started with a simple standalone 2BHK, nothing fancy. When it was time to grow my family, I sold that first home and used the appreciated value to cover around 40% of my next home. Each step was modest, always in line with what I could afford, and it kept me from being overwhelmed by debt. As a family, we became Debt free when I turned 39.

Below is a scenario analysis for someone who earns 25 Lakhs per annum. You can see how big an impact it can have on your financial independence journey. You end up becoming debt free almost 6 years early and with an savings corpus that is almost 2.5 times.

So, if you’re thinking about a home loan, do it on your terms. Start small, time it right during the stable phase of your career, and let it be a stepping stone, not a stumbling block, on your journey to financial independence.