This case answers the key question of why mortgage financing is low in India. It begins with a brief history of the development of housing finance in India and then explores the supply-side and demand-side factors influencing mortgage penetration. A regression analysis has been conducted using the mortgage-to-GDP ratio as the dependent variable and four key demand and supply factors as independent variables. Regulations play an important role in the real estate sector in any economy, and India is no exception. Hence, the case also summarises the role of regulations in the low mortgage penetration observed in India. A cross-country comparison has also been performed, comparing India with Malaysia and Thailand, to highlight the specific factors that have led to poor mortgage financing in India. Finally, some possible recommendations on the lines of financial instruments such as securitisation and regulatory relaxations have been proposed to improve India’s mortgage penetration.