Buying your first home in India? Here’s your complete financial guide—down payment strategies, loan tips, cost breakdowns, and what to watch out for.
💡 Introduction
Buying your first home in India is a dream—and a massive financial decision.
It’s not just about the cost of the house. You’ll need to plan for:
- Down payment
- Registration fees
- EMI affordability
- Loan interest & tenure
- Unexpected costs
Here’s a real-world, step-by-step guide for Indian homebuyers to make smart, stress-free choices.
1. 🧮 How Much Can You Afford?
Before browsing properties, calculate:
- Monthly EMI should not exceed 35–40% of your net monthly income
- Ideally, combine both partners’ income if buying as a couple
Example:
If combined income = ₹1,20,000/month
Safe EMI range = ₹35,000–₹45,000
That roughly supports a loan of ₹35–₹50 lakhs
2. 💰 Down Payment Planning (20–25%)
Banks usually fund 75–80% of your home’s value.
You must arrange the rest as down payment. For a ₹60 lakh home:
- You need ₹12–₹15 lakhs up front
- Also budget ₹3–₹5 lakhs for registration, stamp duty & interiors
Tips to save faster:
- Open a separate “Home Fund” account
- Use SIPs, RDs, bonuses & tax refunds
- Avoid dipping into emergency funds or retirement savings
3. 🏦 Choosing the Right Home Loan
Key things to compare:
- Interest Rate: Floating vs Fixed
- Loan Tenure: 15–30 years (shorter saves on interest)
- Processing Fees: Usually 0.5%–1% of loan value
- Prepayment Options: Check penalties, limits
Recommended lenders:
- SBI, HDFC, LIC Housing Finance, ICICI, Axis
- Compare offers on portals like Paisabazaar, BankBazaar
4. 📑 Must-Know Home Buying Costs (Hidden + Known)
| Cost Type | Estimated Value |
| Down Payment | ₹10–30 lakhs |
| Stamp Duty + Reg. | 5–7% of property value |
| Legal/Valuation Fees | ₹10,000 – ₹30,000 |
| Interior Setup | ₹1–5 lakhs (starter) |
| Society Maintenance | ₹2,000–₹6,000/month |
| Property Tax | Varies by city/locality |
5. ⚠️ Common Mistakes First-Time Buyers Make
- Underestimating hidden costs (GST, legal, furnishing)
- Choosing property before checking loan eligibility
- Not reading builder agreement or RERA status
- Relying only on one partner’s income
- Skipping home inspection or location research
6. ✅ First Home Buying Checklist
- Know your EMI limit
- Target property within 4–5x your annual income
- Save for 20–25% down payment
- Get pre-approved for a loan (optional but helpful)
- Compare multiple lenders
- Choose RERA-approved property
- Review builder reliability + delivery timelines
- Check amenities, connectivity, future resale value
- Make a will or nomination for the house
✅ Conclusion
Buying your first home is not just an investment—it’s your lifestyle anchor.
Make your decision with clarity, not emotion.
Plan finances months in advance, compare loans, and keep a buffer for extras.
A well-bought home brings peace of mind, comfort—and long-term wealth.
