Planning to buy your first home in India? Use this financial checklist to budget, compare home loans, calculate EMIs, and make a confident decision.
💡 Introduction: More Than Bricks—A Lifelong Commitment
Buying a home is a dream for many Indians.
But it’s also the biggest financial commitment you’ll probably make in your life.
Before you book that flat or sign a loan agreement, take a step back.
This guide will help you plan smartly, not emotionally—with every key cost, tip, and decision laid out.
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1. Understand the Full Cost—Not Just Property Price
When a builder says, “₹50 lakh flat,” it’s rarely just ₹50 lakh.
Additional Costs You Must Budget:
• Stamp duty & registration: 5%–7%
• GST (under-construction): 1%–5%
• Society & maintenance deposit: ₹50,000–₹2 lakh
• Parking, clubhouse, amenities: Often separate
• Interiors & furniture: ₹1–₹5 lakh
• Agent or legal fees: ₹20,000–₹50,000
Tip: Add 10%–15% buffer over the base property cost
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2. Plan Your Down Payment Strategically
Banks usually finance up to 80% of the property’s cost.
You must pay:
• Minimum 20% down payment
• Plus above extra costs from point #1
Example:
Property = ₹60 lakh
Loan = ₹48 lakh
You pay = ₹12 lakh (plus ~₹4–5 lakh extra costs)
Ideal approach:
Use savings + short-term debt-free investments, not emergency fund
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3. Compare Home Loans Like a Pro
Don’t jump at the first loan offer.
Factors to Compare:
• Interest Rate: Fixed vs floating
• Processing fee: ₹10,000–₹30,000
• Tenure: 15–30 years (shorter = less interest)
• EMI affordability
• Prepayment/foreclosure charges
Use a loan comparison tool: BankBazaar, PaisaBazaar, or MyLoanCare
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4. Use the 40/30/20/10 Rule
Here’s a safe budgeting method for salaried buyers:
• 40% – Max portion of salary to EMI
• 30% – Other living expenses
• 20% – Savings & investments
• 10% – Emergency buffer
If your EMI > 40% of income, reconsider property choice or increase down payment.
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5. Get Pre-Approved Before You Book
Home Loan Pre-Approval gives you:
• Clarity on your exact loan eligibility
• Faster processing once you finalize property
• Stronger negotiation power with builder
Apply via bank directly or through aggregators like CRED, BankBazaar.
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6. Include Insurance in Your Planning
Why?
Your home loan is a liability. If something happens to you, your family inherits it.
Must-haves:
• Term insurance: Cover loan + family expenses
• Home insurance: Protect property from fire, natural disasters, theft
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✅ First-Time Home Buyer Checklist
• Estimate total cost including taxes, registration, extras
• Plan for 20%+ down payment from savings
• Compare loans across 3–5 banks or portals
• Calculate EMI using online tools
• Get pre-approval before finalizing property
• Ensure term + home insurance is in place
• Avoid emotional buying—run the numbers first
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✍️ Conclusion: Don’t Just Buy a House—Build a Future
Your first home can be your biggest wealth asset—if you plan it right.
Avoid stress and surprises. Enter with a strong budget, real numbers, and zero panic. The keys will feel even more rewarding when you know you’re financially secure.
