🏠 Home Buying · 2026 · Full Cost Analysis
Can I Afford This Home?
Enter property price + your income → instant affordability verdict with full cost breakdown, EMI ratio, down payment needed, and years to save.
📊 EMI & Income Analysis
Monthly EMI at SBI 8.35% (20 years)
₹40,768
EMI as % of take-home salary
54%
Recommended max EMI (40%)
₹30,000
Surplus after EMI + existing EMIs
₹34,232
Affordable home price at your salary
₹53L
Home Buying Readiness — The 5-Point Check
1. Income test: Monthly EMI should not exceed 40% of take-home salary. If your EMI is higher, either save more for a bigger down payment or wait for your salary to increase. 2. Down payment test: Have at least 25-30% of property value in savings (20% down payment + 5-10% for stamp duty, registration, and setup). 3. Emergency fund test: Even after down payment, keep 6 months of expenses as emergency fund. 4. CIBIL test: CIBIL score above 750 for best rates. 5. Job stability test: Minimum 2 years at current employer for best loan approval chances.
Hidden Costs of Buying a Home in India
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 vs Buying — The Real Math for India 2026
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.
Frequently Asked Questions
What is the 40% EMI rule for home loans?▼
Banks use FOIR (Fixed Obligation to Income Ratio) — typically 40-50% of net monthly income. If your take-home is ₹75,000, maximum EMI (including all existing EMIs) should be ₹30,000-37,500. Beyond this, loan approval becomes difficult and financial stress increases. Ideally keep home loan EMI under 35% of take-home for comfortable repayment.
How much down payment do I need to buy a ₹50L home?▼
For a ₹50L home: Minimum down payment = ₹10L (20%). Stamp duty (6%) = ₹3L. Registration (1%) = ₹50K. Brokerage (1%) = ₹50K. Moving/setup = ₹50K. Total cash needed upfront = approximately ₹14.5-16L. Keep additional ₹3-5L as emergency fund. You need at least ₹18-20L in savings before buying this property.
Is it better to buy or rent a home in India?▼
Buy if: you plan to stay 7+ years, EMI is within 40% of income, you have full down payment + emergency fund, and city has good appreciation history (Bangalore, Pune, Hyderabad). Rent if: you're uncertain about location, EMI would strain budget, or you can invest the difference in high-return assets. Neither is universally better — it depends on your city, financial situation, and life plans.
Can I get home loan without 20% down payment?▼
Yes, for properties under ₹30L, banks may fund up to 90% (10% down payment). Above ₹30L: typically 80% funded (20% down). Pradhan Mantri Awas Yojana (PMAY) subsidy available for EWS/LIG/MIG categories reduces effective down payment. However, lower down payment means higher loan amount, higher EMI, and more total interest paid.