Work out the deposit, stamp duty and fees you must have in cash to buy a home, the SIP that funds them, and the income the loan would need.
How much down payment do I actually need?
The Reserve Bank caps how much of a property’s value a lender may fund. In practice that means 90% for loans up to ₹30 lakh, 80% between ₹30 lakh and ₹75 lakh, and 75% above that, so your deposit is 10%, 20% or 25% before anything else. Lenders often ask for more than the minimum, and none of them count stamp duty towards the value.
Why does the calculator add 7% on top of the deposit?
Because stamp duty and registration are real money and they are payable in cash. Stamp duty runs from about 4% to 8% depending on the state, women often pay 1% to 2% less, registration is usually 1%, and brokerage is another 1% to 2% where an agent is involved. A plan that saves only the deposit is short by roughly a third of the deposit again.
What house price growth should I assume?
The Reserve Bank publishes an all-India House Price Index, and it has generally grown in the low to mid single digits in recent years, well below the double digit figures of the previous decade. 5% is a reasonable planning assumption. It varies enormously by city and by micro-market, so check the RBI index for your region rather than trusting a national average.
Should I make a bigger down payment?
It depends on what the money would otherwise earn. A home loan at 8.5% with the interest deduction available to you costs less after tax than that, and a long horizon equity portfolio has historically beaten it. But a smaller loan is a smaller obligation, and there is no tax deduction on peace of mind. If the choice is between a bigger deposit and no emergency fund, take the emergency fund.
Where should the deposit money sit while I save?
It depends entirely on the horizon. Under three years, a debt fund or a fixed deposit maturing near the date, because a deposit is a fixed sum on a fixed day and equity cannot promise either. Between three and seven years, a mix. Over seven years, mostly equity. The return field on this page should follow that choice rather than being left at an equity number for a two year goal.
What if the income figure looks impossible?
Then the house is too expensive, and finding that out now costs nothing. Your options are a longer tenure, which raises eligibility but also the total interest, a larger deposit, which shrinks the loan, a co-applicant, whose income is added to yours, or a cheaper property. The loan eligibility calculator lets you work backwards from what you will actually earn.