I want to buy a home in India
This page helps you plan a home purchase in India, step by step. You will see your loan EMI, how much to save and what it means for your tax. It takes about 15 minutes.
- 1
Check how much you can save each month
Before you take a loan, see how much of your pay is free after needs and wants. Type your monthly take-home pay.
How should I split my income between needs, wants and savings?
Check my monthly budget →Tip: Many people try to keep all loan EMIs together under about 40% of their take-home pay.
- 2
Plan your down payment
Banks usually lend only part of the home price, so you pay the rest yourself. Type the price and the percent you will pay to see how much to save.
How much do I need to save to buy a home?
Plan my down payment →Tip: Also keep money for stamp duty, registration and interiors. These are often not covered by the loan.
- 3
Work out your home loan EMI
EMI means equated monthly instalment: the fixed amount you pay the bank every month. Type the loan amount, interest rate and years.
How much will my home loan cost each month?
Find my EMI →Tip: A longer loan gives a smaller EMI but much more total interest. Compare 15, 20 and 25 years.
- 4
See how the loan is paid off over time
This table shows how much of each EMI is interest and how much reduces your loan. Type the same loan details.
How does each payment pay down what I owe?
Show my loan table →Tip: Part-prepaying in the early years cuts interest the most. Check your bank's prepayment rules first.
- 5
Grow your down payment money
If you are buying in a few years, a recurring deposit is a simple way to save a fixed amount each month. Type your monthly amount, rate and time.
How much will my recurring deposit be worth at the end?
Plan my savings →Tip: For money you need soon, safety matters more than high returns. Avoid putting it all in shares.
- 6
Check your income tax
Home loan interest and principal can lower tax only in the old tax regime. Type your salary and your home loan interest to compare both regimes.
How much income tax will I pay, and which regime is better?
Compare my tax →Tip: In the new regime there is no deduction for a self-occupied home loan, so compare both before you choose.
Questions people ask
How much home loan can I get on my salary?
Banks look at your income, age, other EMIs and credit score. Many lenders keep your total EMIs to around 40% to 50% of your monthly income. Use the EMI calculator to see what payment feels comfortable for you.
How much down payment is needed for a home loan in India?
Banks usually fund up to 75% to 90% of the property value, depending on the loan size. You pay the rest, plus stamp duty and registration, from your own money.
Can I save tax on a home loan in the new regime?
For a home you live in, the new regime does not allow deductions for home loan interest or principal. The old regime allows interest up to Rs 2 lakh a year under section 24(b) and principal within the Rs 1.5 lakh 80C limit.
Should I choose a fixed or floating interest rate?
A floating rate moves with the market, so your EMI or loan length can change. A fixed rate stays the same for a set time but is often a little higher. Read the loan terms carefully before you pick.