Should You Take A Second Home Loan When The First Is Still Running? What Experts Say

India’s real estate sector is maturing with investors considering as a long-term investment. As people are getting good returns due to the appreciation of land or property, real estate investment is one

of the preferred investment avenues. Home loans become a useful instrument to invest in real estate while facing a lack of capital.

But should you take a second home loan while paying for the first one?

According to Rohan Khatau, Director at CCI Projects, buyer sentiment has visibly shifted in recent years. He notes that people are treating second homes as a part of long-term wealth planning rather than speculative purchases. With developers offering flexible payment structures and home loan rates expected to stay steady, many homeowners are now using their first property as an appreciating asset—and strategically leveraging it to finance their next move.

Second Home Loan Depends On Strong Credit Score And Track Record

Industry signals echo this shift. Arpit Jain, Director at Arkade Developers, points out that rising incomes and eased lending conditions are making it simpler for borrowers to manage more than one home loan. Banks and housing finance companies are now more open to approving a second home loan even when the first is active, provided the borrower maintains a strong credit score and a healthy repayment record. With faster digital verification and transparent credit checks, lenders are far more confident in assessing eligibility for multiple loans.

The overall real estate environment also remains supportive. Sandeep Ahuja, Global CEO of Atmosphere Living, highlights that the RBI’s stable repo rate of 5.50% has kept borrowing costs predictable. This steady monetary backdrop, combined with supportive developer schemes and government policies, is encouraging more buyers—especially in the premium and branded homes segment—to consider upgrading or investing in second properties. If current trends continue, FY27 could be the year when second-home ownership becomes mainstream.

However, experts advise caution and planning. Atul Monga, CEO & Co-Founder of BASIC Home Loan, says buyers must closely assess their financial health before signing up for a second loan. Maintaining a debt-to-income ratio under 45–50%, building a three-month emergency fund, and conducting proper legal checks are essential steps. A higher down payment and careful comparison of lenders can also ease the EMI burden.

With stability in interest rates, better loan options, and a growing appetite for real estate investment, owning a second home is becoming an achievable, well-calculated goal for many Indians.