Home Affordability
Gauge

DTI (Debt-to-Income ratio) is the percentage of your monthly take-home income that goes toward EMI payments. Indian banks typically lend up to 40%–50% DTI. If your income is ₹1,00,000/month and you already pay ₹10,000 in EMIs, your maximum new home loan EMI would be ₹30,000–₹40,000. Keeping DTI at 30%–35% is considered conservative and sustainable. Going above 50% significantly increases financial stress and default risk.

On a take-home salary of ₹1 lakh/month with no existing loans, most Indian banks will approve a home loan of ₹45–65 lakhs (depending on the lender and property). At 8.5% for 20 years, this translates to an EMI of ₹39,000–₹56,000. At 40% DTI, your maximum EMI eligibility is ₹40,000, supporting a loan of approximately ₹41–42 lakhs at current rates. Adding co-borrowers (spouse with income) significantly increases eligibility.

RBI regulations require a minimum down payment of 10% of property value (for loans up to ₹30L), 20% (for ₹30L–₹75L), and 25% (for above ₹75L). However, a down payment of 20%–30% is generally recommended to keep EMIs manageable and avoid paying too much interest. Higher down payments also reduce the principal and total interest burden substantially over 20 years. If paying 30% down reduces your EMI by ₹8,000/month, that's ₹96,000 saved annually — much better than keeping the money in a savings account.