Mortgage and its impact on one's money habits

House Loan has a big impact on one's lifestyle. This is what I have seen around me in so many couples and individual.

I have a friend who bought his house after 5 years of job. He always used to share his stories that he used to eat-out quite often when without a mortgage, but now after a mortgage he can't afford that much of eating out. I know of other manager who jokes that now because he has a mortgage, he can't buy that new shirt on this birthday. I know lots of people who postpone family planning because of huge mortgage.

Hearing to all these tales I always used to wonder why this happens. And now, when I have my own mortgage to deal with I precisely know what triggers all these changes:

If you are not paying mortgage, you have no financial burden of monthly payments. Yes you still might be paying rent, but rent's per month in Noida are 10K-15K where as EMI will be somewhere from 30K-35K. This obviously leaves you with the less money to spend hence the lifestyle changes become must.

Also, when you are paying mortgage, interest amount is very high. Most of the home-buyers pay almost same amount or more then original loan amount as interest to the lender. i.e. To say if you get a loan for Rs 30L, you might end up paying 70L-80L in whole. Once you understood it, you definitely want to save for loan prepayment.