The Reserve Bank of India (RBI) increased its repo rate by 0.25 percentage points, from 5.25% to 5.50%, on 7 October 2026 . This decision could affect home loan borrowers and people planning to purchase a property. Will Your Home Loan EMI Increase? Borrowers with floating-rate home loans linked to the repo rate may face higher interest rates when their lenders pass on the increase. Depending on the loan terms, this could mean higher EMIs or a longer repayment tenure. The impact and timing will vary between lenders and borrowers. Will Property Prices Rise? Higher borrowing costs may increase developers’ financing expenses and put pressure on construction costs. Some developers may pass these costs on to buyers, while others may absorb them or reduce discounts. However, property prices also depend on demand, construction expenses, competition and unsold inventory. A repo rate hike does not automatically mean every property will become more expensive. What Should Homebuyers Do? If you are...