From checking if you can afford a home to calculating the total cost — all the calculators you need, in the right order.
Buying a home is the single largest financial decision most Indian families make. Getting the numbers right before you commit prevents years of financial stress afterward.
Banks use the Fixed Obligation to Income Ratio (FOIR) — typically capping total EMIs at 50% of net monthly income. If you earn ₹1,00,000/month, your total EMI capacity across all loans is ₹50,000. If you already pay ₹10,000 car EMI, your home loan EMI budget is ₹40,000 — which translates to roughly ₹46-48 lakh loan at 8.5% over 20 years.
A common mistake: people check if they can afford the down payment without checking the ongoing EMI burden. Always work backwards from what monthly payment fits comfortably in your budget, not forward from the property price.
Banks finance a maximum of 75-90% of the property's registered value (called the Loan-to-Value ratio). For a ₹75 lakh flat, you need a minimum down payment of ₹7.5-18.75 lakh, plus stamp duty and registration (typically 5-8% of property value, or ₹3.75-6L more). The real cash needed on day one is often 25-30% of the property price — more than most buyers plan for.
On a ₹50 lakh loan at 8.5% for 20 years, your EMI is roughly ₹43,400/month. Over 20 years, you pay ₹1,04,16,000 total — ₹54.16 lakh in interest alone, more than the original loan. The bank earns more from interest than your principal. This is why prepayment strategy matters — an extra EMI per year can cut 4-5 years off your tenure.
In many Indian metros, renting an apartment can be significantly cheaper than buying on loan — especially in the first 5-10 years when most of your EMI goes toward interest, not building equity. Run the comparison calculator with your specific numbers before deciding. Factors: current rent vs EMI difference, expected property appreciation, opportunity cost of down payment invested in equity.
Under the Old Tax Regime: Section 24 allows deduction of home loan interest up to ₹2 lakh/year for a self-occupied property. Section 80C allows deduction of principal repayment up to the ₹1.5 lakh limit (shared with other 80C investments). First-time buyers may also get Section 80EEA benefit. These benefits are not available under the New Tax Regime — another reason to run both scenarios in the income tax calculator before choosing your regime.
Most banks require a minimum CIBIL score of 750 for the best interest rates. Scores between 700-749 may still qualify but at slightly higher rates. Below 700, approval becomes difficult with most banks.
Yes — at 50% FOIR, your maximum EMI capacity is ₹15,000/month (assuming no other loans). At 8.5% over 20 years, this translates to roughly ₹17-18 lakh loan. In most metros this won't buy much, but in tier-2/3 cities or on the city outskirts it can be sufficient for a starter home.
Most Indian home loans are floating (linked to RBI repo rate). Fixed rates are typically 1-2% higher than current floating rates. With a 20-30 year loan tenure, predicting rate direction is impossible — floating is generally the better choice unless you have very low risk tolerance and need payment certainty.