Home Loan Interest Rates in October 2026: What Mumbai Buyers Are Being Quoted, and How to Get a Better Deal
Home loan rates in October 2026 start around 7.20% to 7.50% at big banks after the repo hike. EMIs on a Rs 1 crore loan, and how to get the best rate.
After the RBI raised the repo rate to 5.50% on 7 October, the question I hear most is no longer "will rates go up?" but "what rate should I actually accept?" The honest answer is that the headline rate a bank advertises and the rate you get can be quite different.
What are home loan interest rates in October 2026?
A NewsBytes round-up dated 16 October 2026 listed these starting rates for floating-rate home loans:
| Lender | Reported floating rate |
|---|---|
| Bank of Baroda | from 7.20% |
| SBI | from 7.50% |
| Axis Bank | 8.00% to 9.10% |
| HDFC Bank | up to 13.45%, depending on loan amount and profile |
Treat these as starting points. The rate you're offered depends on your credit score, income, the loan amount, the loan-to-value ratio and whether you're salaried, self-employed or an NRI. Always check the bank's own website on the day you apply.
How much is the EMI on a Rs 1 crore home loan?
For a 20-year loan, by my calculation:
| Interest rate | Monthly EMI | Total interest over 20 years |
|---|---|---|
| 7.20% | Rs 78,735 | Rs 88.96 lakh |
| 7.50% | Rs 80,559 | Rs 93.34 lakh |
| 8.00% | Rs 83,644 | Rs 1.01 crore |
| 8.50% | Rs 86,782 | Rs 1.08 crore |
| 9.10% | Rs 90,617 | Rs 1.17 crore |
The gap between 7.50% and 9.10% is about Rs 10,000 a month, or roughly Rs 24 lakh of interest over the loan. That's why a single phone call to negotiate is worth making.
Will my existing EMI go up after the repo hike?
If your loan is linked to the repo rate, your rate rises when the bank passes on the hike and your loan reaches its reset date. Many banks keep your EMI the same and stretch the tenure instead. On my numbers, a Rs 1 crore loan at 8.50% for 20 years that moves to 8.75% with the same EMI runs about 12 months longer. Ask your bank which option it has applied.
The advertised rate is the bank's opening offer. Your credit score and one honest negotiation decide the real one.
How to get a lower home loan rate in Mumbai
- Check your credit score first. The lowest advertised rates are usually reserved for strong scores.
- Get two or three written offers and show the best one to the bank you prefer.
- Ask about the spread over the repo rate. That spread stays fixed for your loan, so it matters more than any festive discount.
- Consider a woman co-borrower, as some lenders price lower for women and Maharashtra gives a 1% stamp duty concession when the flat is in a woman's name alone.
- Look at a balance transfer if your existing loan is well above current offers, after counting processing and legal fees.
What this means for you
- Buyers: lock your budget using our EMI calculator at a rate 0.5% higher than your offer, to leave headroom.
- Existing borrowers: check whether your tenure has been extended without you noticing.
- NRI buyers: NRI loans have their own rules on tenure and repayment. Read our NRI home loan guide and NRI buying help.
Frequently asked questions
What is the lowest home loan rate in October 2026?
A 16 October 2026 round-up listed Bank of Baroda from 7.20% and SBI from 7.50% for floating-rate loans. Your actual rate depends on your profile.
What is the EMI on a Rs 1 crore home loan for 20 years?
About Rs 80,559 at 7.50%, Rs 83,644 at 8.00% and Rs 86,782 at 8.50%.
Does the repo rate hike increase my EMI immediately?
Not always. Repo-linked loans change at the reset date, and many banks extend the tenure instead of raising the EMI.
Related reading
- RBI's October 2026 repo hike and your EMI
- Home loan tax benefits under the new Act
- Stamp duty and registration charges in Mumbai
Comparing loan offers for a Mumbai flat? Book a video call or WhatsApp me.
Warmly,
Yanik
General information, not financial advice. Rates change often; confirm with your lender.
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