To understand this, it is important to understand that there are two components of a home loan EMI payment: the outstanding principal repayment and the repayment of the interest. For the first few years all your repayment goes into the payment of the interest component of your loan.
However, a higher home loan tenure = higher costs.
Let’s understand this better. By increasing the tenure of your loan, you are also increasing the amount of interest payable too and in that process increasing the cost of ownership of the house too. Therefore, when you reduce the loan tenure, you cut your interest costs and overall cost of purchase too.