Enter property price + your income → instant affordability verdict with full cost breakdown, EMI ratio, down payment needed, and years to save.
Use the rate and tenure from an actual lender offer when available.
1. Income test: Use an EMI-to-income ratio as a planning scenario, not a universal lender rule. Different lenders use different underwriting criteria and may consider gross income, existing obligations, credit history and other factors. 2. Down payment test: Model the down payment and purchase costs explicitly. The amount you need depends on the property, lender, taxes/fees, and your own cash-flow plan. 3. Emergency fund test: Even after down payment, keep 6 months of expenses as emergency fund. 4. CIBIL test: CIBIL score above 750 for rates offered depend on lender and borrower profile. 5. Job stability test: Employment history is one of several factors lenders may consider; there is no single employment-duration rule that applies to every lender.
Most first-time buyers focus only on the property price but underestimate additional costs. Stamp duty: 4-8% depending on state (Maharashtra 6%, Delhi 4-6%, Karnataka 5%). Registration: 1% of property value. Brokerage: 1-2% if buying through broker. GST on under-construction property: 5% (ready-to-move properties have zero GST). Interior and furniture: ₹2-10L depending on size. Society maintenance deposit: ₹50K-2L. Total non-loan cash needed: typically 28-35% of property value. Budget carefully before committing.
Renting a ₹60L flat may cost ₹15,000-25,000/month in rent. Buying the same flat with 20% down: EMI = ₹39,000/month. The difference of ₹14,000-24,000/month in favour of renting can be invested in SIP — at 12% returns over 20 years, this creates ₹1.4-2.4 crore wealth. Meanwhile, the property may appreciate 6-8% annually, turning ₹60L into ₹2.3-3.7 crore. The decision depends on your city (appreciation potential varies hugely), how long you plan to stay (minimum 5-7 years to justify buying), and whether rental yield covers your EMI gap. In high-appreciation cities like Bangalore and Pune, buying is often better long-term despite higher EMI.