Top Mortgage Stocks in India

Home loans have become more common than ever in India, thanks to rising incomes and government support for affordable housing. This has helped mortgage finance companies grow rapidly, especially those offering loans in tier-2 and tier-3 cities. Some companies now have strong profits and low default rates, making them stand out in the stock market. If you are looking to track growth in housing finance, it’s worth knowing the best mortgage stocks in India. In this article, we’ll look at the top performers and what makes them suitable for investors like you. 

Overview of the Indian Mortgage Sector

India’s mortgage sector is growing steadily in 2025, supported by rising home ownership, urban development, and government efforts to boost affordable housing. 

Recent industry estimates indicate that the Indian home mortgage market may reach USD 915.22 billion by 2030, up from USD 479.52 billion in 2025, with a healthy annual growth rate of nearly 14%. This growth is a result of people shifting to cities, rising income levels, and government programs, such as the Pradhan Mantri Awas Yojana (PMAY), which aims to make housing more affordable for everyone.

Housing finance companies and NBFCs remain key lenders in this sector, with loan books reaching ₹9.6 trillion in March 2024. By March 2026, it is anticipated to cross the ₹13 trillion mark. 

Top Mortgage Stocks in India

If you’re looking to invest in companies driving homeownership across the country, here are some of the top mortgage stocks in India that stand out for their strong performance and focus on affordable housing.

Overview of Top Mortgage Stocks in India

Let’s help you understand these most reliable and high-potential mortgage stocks in India.

1. Bajaj Housing Finance Ltd

Bajaj Housing Finance Ltd (BHFL), a part of Bajaj Finance Ltd, has quickly grown its home loan business since it started in 2018. In September 2024, the company launched its Initial Public Offering (IPO) and raised ₹6,560 crore, making it the biggest IPO in India that year. BHFL also introduced ‘Sambhav Home Loans’ to help people in the affordable and near-prime housing categories.

The company works in 175 locations across 23 states and union territories, with help from its central processing centres. In March 2024, BHFL became the biggest housing finance company in India. It now plans to double its balance sheet to ₹2 lakh crore over the next three years. For anyone looking at a list of mortgage companies in India, BHFL is one of the top names to know.

2. LIC Housing Finance Ltd

LIC Housing Finance Ltd, a subsidiary of LIC, has been helping Indians get home loans since 1989. Recently, the company made home loans cheaper by cutting its Prime Lending Rate (LHPLR) by 0.25%, starting from April 28, 2025. This will benefit both new and current borrowers. 

The company also raised ₹10 billion through 20-year residential mortgage-backed securities (RMBS), marking a significant move to diversify funding sources. LIC Housing Finance also plans to raise ₹35 billion by reissuing bonds that will mature in April 2030, to boost its long-term funds. These steps show LIC Housing Finance’s focus on customer needs and smart planning, making it one of the top mortgage stocks for long-term investment.

3. PNB Housing Finance Ltd

Started in 1988 and backed by Punjab National Bank, PNB Housing Finance is more focused on affordable housing through its ‘Roshni Home Loans’ program. The company has achieved an affordable housing loan book of ₹5,070 crore, surpassing its earlier FY25 target of ₹5,000 crore. Looking ahead, PNB Housing Finance aims to expand this portfolio to ₹9,500 crore by the end of FY26 and further to ₹15,000 crore by March 2027. 

To achieve this, it is using support from the Pradhan Mantri Awas Yojana-Urban 2.0 and expanding its branch network. They also plan to launch new products like Loan Against Property (LAP) and a smaller version called Micro LAP to help people who don’t usually get such services. This focused strategy puts PNB Housing Finance in the list of top 10 mortgage stocks in India, showing its strong efforts to support affordable housing for all.

4. Aadhar Housing Finance Ltd

Aadhar Housing Finance Ltd is a prominent player among listed mortgage stocks in India. It focuses on providing affordable housing finance to low-income groups. In FY25, it expanded its branch network by adding 57 new locations, totalling 580 branches across 21 states and 545 districts. 

The company plans to double its assets under management to ₹50,000 crore over the next four years, emphasising growth in underserved regions. Aadhar Housing Finance also partnered with the Asian Development Bank in June 2024 to improve women’s access to housing loans in India.

5. Aptus Value Housing Finance

Aptus Value Housing Finance, established in 2010, specialises in providing home loans to self-employed individuals in semi-urban and rural areas. In May 2025, the company appointed key executives, including a new Chief Risk Officer and Chief Financial Officer, to strengthen its leadership team. 

Additionally, Aptus is set to launch a new product line aimed at enhancing its affordable housing offerings. The company also expanded its footprint by opening 38 new branches during FY2025, increasing its network to 300 locations and reinforcing its commitment to delivering exceptional service to over 160,000 customers.

6. Aavas Financiers Ltd

Aavas Financiers Ltd., established in 2011 and headquartered in Jaipur, specialises in providing housing finance to underserved semi-urban and rural populations across 14 Indian states. The company has pioneered a Green Housing Program, introducing seven eco-friendly home features to promote sustainable living. This initiative has earned recognition, including the ASSOCHAM Excellence in Self-built Green Housing Initiative award. 

Additionally, Aavas plans to expand its reach through digital channels and partnerships with entities like CSC and Emitra, aiming to serve ‘New to Credit’ and ‘New to Mortgage’ customers. In fact, the company recently celebrated a big milestone as it crossed ₹20,000 crore in Assets Under Management. This is a major milestone that reinforces its position among India’s top mortgage shares.

7. Can Fin Homes Ltd

Can Fin Homes Ltd, established in 1987 under Canara Bank’s sponsorship, focuses on providing housing loans, especially to salaried individuals and middle-income groups. To support its growth plans, Can Fin Homes announced in February 2025 its intention to raise ₹2,000 crore through five-year non-convertible debentures (NCDs). This move aims to diversify funding sources and reduce borrowing costs. 

As of March 2025, approximately 80% of its bank borrowings are linked to the repo rate, with the remaining 20% tied to Treasury bills, enhancing its ability to offer competitive lending rates. The company is also piloting a small internal sales team. As a result, Can Fin Homes often features in investor searches for the top Mortgage share price in India.

8. Sammaan Capital Ltd

Sammaan Capital Limited, formerly Indiabulls Housing Finance, is a mortgage-focused NBFC regulated by the RBI. In July 2024, it was rebranded to emphasise customer respect and inclusivity. Sammaan Capital has over 200 branches across India and offers a wide range of home loan options, including loans for rural areas and NRIs, making it easy for many people to find the right solution.

In 2025, the company announced plans to enter the high-yield loan market through partnerships with global credit funds, aiming to build a ₹15,000 crore loan book in this segment. This also positioned Sammaan Capital as one of the top Mortgage stocks in India.

Key Factors to Consider Before Investing In Mortgage Stocks

Before you decide to invest in the top mortgage stocks in India, it’s crucial to understand the key factors that influence their performance and long-term growth potential.

1. Loan Book Quality & Asset Performance

When evaluating mortgage stocks, it’s essential to assess the quality of a company’s loan book. This involves examining the proportion of loans that are performing well versus those that are not, often indicated by metrics like the Gross Non-Performing Assets (GNPA) ratio. 

A lower GNPA suggests that the company has a healthier loan portfolio, which can lead to more stable returns for investors. Investing in mortgage stocks with strong asset performance can reduce the risk of losses due to loan defaults.

2. Profitability Metrics

Profitability metrics show how well a mortgage company is making money. Key measures include Return on Equity (ROE), Return on Assets (ROA), and Net Interest Margin (NIM). Higher values mean the company is using its money and assets effectively to earn profits, which is good for investors.

3. Valuation & Market Position

Valuation tells you if a stock is overpriced or a good deal. Look at ratios like P/E and P/B to compare with peers. A strong market position means the company is well-known and trusted. Among the top mortgage companies in India, better valuation and brand position often signal safer investments.

4. Regulatory Environment

The Reserve Bank of India has been tightening rules for mortgage companies. These include higher capital requirements, stricter rules for risky loans, and limits on how much they can raise from deposits. 

For investors, this can mean higher costs for the company and slower loan growth, which may reduce profits. But these rules also make the company more stable. So, investors should check how well a company follows these rules for long-term safety and returns.

5. Risk Factors

Investing in mortgage stocks has risks like loan defaults (credit risk), falling share prices (market risk), or trouble selling your shares quickly (liquidity risk). There can also be business issues (operational risk) or rule changes by the government (regulatory risk). Before investing, make sure these risks match your comfort level and goals.

Conclusion

India’s housing finance sector is growing fast due to rising demand for homes and government support. Mortgage companies play a key role in making homeownership possible. Investing in strong and reliable mortgage stocks can be a suitable long-term opportunity. 

Before investing, always check the company’s financial health, past performance, and future growth plans. Open an account with Share.Market to start investing.

FAQs

1. How Do I Choose the Right Mortgage Stock to Invest in?

Research the company’s financial health, loan portfolio quality, and market reputation. Look for consistent performance and low non-performing assets to ensure a stable investment.

2. Should I Invest in Top Mortgage Stocks for the Long Term?

When it comes to investing, the longer you stay invested, the better the results are due to the compounding effect. Staying invested for the long term also eliminates short-term market noise. Based on your research, you can invest in mortgage stocks for the long term if they fit your overall portfolio. 

3. What Are the Risks Involved in Investing in Mortgage Stocks?

Risks include interest rate fluctuations, economic downturns affecting loan repayments, and regulatory changes. It’s essential to diversify your portfolio and stay informed about market conditions.

4. Do Mortgage Stocks Provide Regular Income?

Many mortgage companies distribute a portion of their profits as dividends. Investing in such stocks can offer regular income, but dividend payouts are subject to the company’s performance and policies.

5. Is it Suitable for Beginners to Invest in Mortgage Stocks?

Yes, mortgage stocks can be suitable for beginners due to their relatively stable nature. However, it’s crucial to conduct thorough research or consult a financial advisor before investing.

6. How Can I Invest in the Top Mortgage Stocks?

You first need to open a demat account to invest in top mortgage stocks in India. Research the companies and consider your risk appetite before investing.