Buying a House

Find out if you can really afford that property

Property & finances

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Typical home-loan rate in India: 8.5–9.5%.

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Picking a state above auto-fills this. Female buyers and rural property may pay 1–2pp less; verify with your sub-registrar before booking.

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Real cost breakdown

Down payment (20%)₹ 16,00,000
Stamp duty + registration₹ 4,80,000
Interiors / furnishing₹ 4,00,000
Total cash needed upfront₹ 24,80,000
Your savings cover₹ 18,00,000
You're short ₹6,80,000 on the upfront cash.
Loan amount₹ 64,00,000
Monthly EMI₹ 56,353
Total interest paid₹ 71,24,832

Verdict

Stretched

Debt-to-income: 37.6% of your monthly income would go to EMIs.

Safe ≤ 35% · Stretched 35–50% · Unaffordable above 50%

At 40% DTI, your max affordable property at this rate & tenure is ₹85.2 L.

Total paid to bank

₹1.4 Cr

Principal 47.3%
Interest 52.7%

Your Action Plan

Top up your savings by ₹₹6.8 L before booking

Don't break long-term investments. Park monthly surplus in a liquid mutual fund until you close the gap.

Keep a 9-month emergency fund AFTER buying the house

Home loans amplify your monthly burn. Job loss with a mortgage is much harder than job loss without one.

Compare offers from 3 lenders — banks vs HFCs

A 0.25% rate difference on a ₹50L 20-year loan is ~₹2.5L in interest over the tenure. Negotiate hard.

Budget for unexpected closing costs

Society transfer fees, GST on under-construction, parking premium, club membership, brokerage. Easily another 1–2% of price.

Be cautious — your DTI is stretched

You'll have very little room for surprises. Increase savings or pick a cheaper property.

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Don't drain your retirement savings for the down payment

PF, NPS, long-term mutual funds compound for decades. A home loan at 9% is far cheaper than missing 30 years of equity returns.

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Don't max out the loan tenure to lower EMI

A 30-year loan at 9% costs roughly 1.6× the property in interest. 20 years is the sweet spot for most buyers.