40%
Max EMI-to-income ratio
Lender thumb rule
20–25%
Minimum own funds
Down payment + costs
750+
CIBIL score needed
For best interest rates
1
FoundationCalculate your real budget — before you visit a single property
The single most common mistake first-time buyers make: falling in love with a property before knowing what they can actually afford. Start with numbers, not properties.
PropIQ Rule
Keep total EMI below 40% of take-home income. If your take-home is ₹1 lakh/month, maximum total EMI burden (home loan + any existing EMIs) should be ₹40,000. Banks approve up to 50–55% but that leaves very little room for emergencies.
The 3-number method
You need three numbers before you talk to any developer or broker:
| Step | What to calculate | Example (₹1L take-home) |
|---|---|---|
| ① Maximum monthly EMI | Take-home × 40% minus existing EMIs | ₹35,000/month |
| ② Loan eligibility | EMI ÷ EMI per lakh × 100 (20yr, 8.75%) | ~₹44 lakh |
| ③ Property budget | Loan + own down payment (keep 6 months expenses aside) | ₹44L + ₹10L = ₹54L |
Critical
Never count CTC as income. CTC includes PF, gratuity, variable pay and benefits that may never reach your bank account. Use only what lands in your bank every month — consistently — over the last 6 months.
EMI reference table — ₹1 lakh loan at 8.75% interest
| Tenure | EMI per ₹1L | Total interest paid |
|---|---|---|
| 10 years | ₹1,252 | ₹50,240 |
| 15 years | ₹992 | ₹78,560 |
| 20 years | ₹890 | ₹1,13,600 |
| 25 years | ₹844 | ₹1,53,200 |
| 30 years | ₹811 | ₹1,91,960 |
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2
Cash planningThe full upfront cash you actually need
The down payment is just 20% of your upfront cash requirement. First-time buyers are routinely shocked by the additional charges that must be paid before getting the keys.
Complete cost breakdown on a ₹60 lakh property (Bengaluru example)
| Cost head | Rate | Amount | Payable when |
|---|---|---|---|
| Down payment (20%) | 20% of cost | ₹12,00,000 | Before loan disbursement |
| Stamp duty | 5% (Karnataka) | ₹3,00,000 | Registration day |
| Registration charges | 1% | ₹60,000 | Registration day |
| TDS on property | 1% if > ₹50L | ₹60,000 | Before registration |
| Home loan processing fee | 0.25–1% | ₹30,000–₹1,20,000 | Before sanction |
| Legal / title verification | Fixed | ₹5,000–₹25,000 | Before booking |
| Property insurance | Annual | ₹4,000–₹10,000 | Annually |
| Basic interiors (minimum) | Varies | ₹3,00,000–₹8,00,000 | Post-possession |
| Estimated total needed beyond loan | ₹20–25 lakh | Across stages | |
State-wise stamp duty varies significantly
Maharashtra charges 6%, Delhi charges 6% (women 4%), Tamil Nadu 7%, Telangana 5%. Use our Stamp Duty Calculator to get the exact figure for your state before budgeting.
3
Home loanGetting the right home loan — not just the cheapest rate
The advertised interest rate is the least important factor when comparing home loan lenders. Here is what actually determines your total cost.
What to compare beyond interest rate
| Factor | Why it matters | What to check |
|---|---|---|
| Processing fee | Paid upfront, non-refundable | 0.25% vs 1% on ₹48L = ₹36,000 difference |
| Part-payment rules | Critical for prepayment | Floating rate loans: RBI mandates zero prepayment penalty |
| Reset clause (RLLR) | How quickly rate changes pass to you | Monthly reset is better than quarterly |
| Disbursement speed | Delays cost builder interest | Reputable banks: 7–14 days after documentation |
| Insurance bundling | Often forced, inflating cost | Refuse standalone insurance bundling; it's not mandatory |
| Foreclosure charges | If you want to close early | Floating: zero. Fixed: up to 4% — avoid |
CIBIL score and interest rate — real numbers
| CIBIL score range | Typical rate premium | Impact on ₹48L, 20yr loan |
|---|---|---|
| 800+ (excellent) | 8.50–8.75% | EMI ₹42,720 — best terms |
| 750–799 (good) | 8.75–9.25% | EMI ₹43,920 — acceptable |
| 700–749 (fair) | 9.25–9.75% | EMI ₹45,360 — extra ₹2,640/month |
| Below 700 | 10%+ or rejection | Wait 12–18 months and improve first |
Documents needed for home loan application
KYC (PAN + Aadhaar), 6 months salary slips, 2 years ITR, 6 months bank statements, Form 16, appointment letter, property documents (once identified). Self-employed: 3 years ITR + CA-certified P&L + balance sheet.
4
Property typeUnder-construction vs resale — which is right for you?
Both have strong cases. The right choice depends on your timeline, risk tolerance and whether you need to move immediately.
✅ Under-construction pros
- Lower launch price vs comparable ready
- Pay in stages (construction-linked)
- Choose floor, unit, sometimes finishes
- New building, no maintenance liability
- GST input credit sometimes available
⚠️ Under-construction risks
- Delivery delay risk (even RERA projects)
- EMI + rent double burden while waiting
- Actual carpet area may differ from booklet
- Builder may change specifications
- No physical inspection until possession
✅ Resale pros
- Move in immediately — no rent + EMI overlap
- What you see is what you get
- No GST (only stamp duty)
- Established neighbourhood, known maintenance
- Price negotiable vs builder fixed price
⚠️ Resale risks
- Title chain verification is critical
- Hidden maintenance arrears possible
- Older building — higher repair costs
- Previous loan must be cleared before you buy
- Society approvals required for transfer
5
Due diligenceRERA verification and legal checks — non-negotiable
In India, property legal due diligence is entirely the buyer's responsibility. No one will flag a problem for you. This is the step that protects your life savings.
RERA check — for under-construction properties
- Verify RERA registration number on the state RERA portal (MahaRERA, K-RERA, RERA Telangana, etc.)Cross-check with what's on the developer's brochure — they must match exactly
- Check promised delivery date on RERA — builder cannot change this without filing an extensionIf already extended once, ask why and whether a second extension has been filed
- Verify carpet area listed in RERA registrationBuilder must charge you only for carpet area, not super built-up. Any variation > 3% is illegal
- Check if there are any RERA complaints or orders against the project or promoterSearch by promoter name — not just project. Some builders use different names for different projects
- Confirm sanctioned plan matches what's being soldCheck if the floor plan you're buying is in the sanctioned plan. Deviation = risk
Title chain check — for resale properties
- Verify ownership chain for minimum 15–20 years via registered deedsA property lawyer can do this for ₹5,000–₹25,000. Non-negotiable investment
- Check for any mortgage, lien or encumbrance on the propertyGet Encumbrance Certificate (EC) from Sub-Registrar office for last 20 years
- Verify property tax receipts are paid up to date
- Confirm society maintenance dues are cleared by sellerGet a no-dues certificate from the housing society before completing transaction
- Check Occupancy Certificate (OC) existsWithout OC, the building is technically illegal. Banks won't finance, and you can't get electricity/water legally
Never skip this
Spending ₹15,000–25,000 on a property lawyer to verify title is the highest-ROI spend you will make in the entire home-buying process. A title defect discovered after registration can cost you the entire property value with no recourse.
6
NegotiationHow to negotiate — and what to never pay for
Builders are more negotiable than they appear, especially at end-of-quarter or year-end. Resale owners are always negotiable. Here's how to get the best deal.
What you can negotiate with a builder
- Floor rise charges — builders often waive on preferred floors
- Car parking charges — often separately listed, sometimes removable
- Club membership one-time fee — often negotiable at launch
- Subvention schemes (pay 10% now, rest at possession) — ask if available
- Free upgrades — modular kitchen, flooring upgrade, extra power points
Never pay these
Infrastructure Development Charges (IDC), External Development Charges (EDC) — these are government levies but builders charge separately on top of base price. They are legitimate but verify amounts against RERA filing. Do not pay any amount before getting an official receipt on company letterhead with cheque/NEFT.
7
RegistrationStamp duty & registration — state-wise complete reference
Stamp duty is the single largest transaction cost after the property price itself. It varies significantly by state, gender of buyer, and property type.
Stamp duty rates — major states 2026
| State | Male buyer | Female buyer | Joint (M+F) | Registration |
|---|---|---|---|---|
| Maharashtra (Mumbai) | 6% | 5% | 6% | 1% (max ₹30,000) |
| Karnataka (Bengaluru) | 5% | 5% | 5% | 1% |
| Delhi | 6% | 4% | 5% | 1% |
| Tamil Nadu (Chennai) | 7% | 7% | 7% | 4% |
| Telangana (Hyderabad) | 5% | 5% | 5% | 0.5% |
| Haryana (Gurugram) | 7% | 5% | 6% | 3% |
| Uttar Pradesh (Noida) | 7% | 6% | 6.5% | 1% |
| West Bengal (Kolkata) | 6% | 6% | 6% | 1% |
Tax-saving tip
In states where female buyers get lower stamp duty, registering in a woman's name (or joint with woman as first applicant) can save 1–2% on the property value. On a ₹1 Cr property in Delhi, that's ₹2 lakh saved. The property can be jointly financed by both spouses.
What happens on registration day
1
Pay stamp duty challan
Pay online via GRAS / state portal. Bring payment receipt to Sub-Registrar office.
Day before
2
Present at Sub-Registrar's office
Both buyer and seller (or builder representative) must be physically present with original documents.
Registration day
3
Biometric and document verification
Aadhaar-based biometric authentication for all parties. Documents verified by Sub-Registrar.
Registration day
4
Registered sale deed issued
Physical registered copy given same day or next day. This document is your legal proof of ownership. Keep multiple scanned copies.
Same / next day
5
Mutation (Khata transfer)
Apply to local municipal body to get property recorded in your name. Required for property tax and OC.
Within 30 days
8
PossessionPossession & snagging — don't sign until you're satisfied
Possession day is emotionally charged. Most buyers sign everything immediately and regret it for years. Take your time — the builder cannot legally force you to sign.
Pre-possession snagging checklist
- Verify carpet area with measuring tape vs agreementAny shortfall > 3% of carpet area must be adjusted in price per RERA
- Check all door and window fittings — open, close, lock every one
- Test all electrical points with a phone charger or testerCheck MCB panel for correct labelling of each circuit
- Run water in every tap, check water pressure and drainage flow
- Check flooring for hollow tiles (knock each tile — hollow sound = poor installation)
- Inspect walls and ceiling for cracks, seepage marks or damp patches
- Verify kitchen and bathroom fittings match the agreed specifications
- Confirm parking space as per agreement (number and location)
- Get the Occupation Certificate (OC) copy before taking possessionWithout OC, do not take possession. You have no legal standing to stay
Your right under RERA
Under RERA, you are entitled to 5 years of structural defect liability from possession date. If any structural issue arises within 5 years, the builder must fix it at no cost. Document all snag issues in writing before signing possession documents.
9
Tax benefitsHome loan tax benefits — know exactly what you can claim
A home loan comes with significant tax benefits under the Income Tax Act. Understanding these reduces your effective cost of borrowing by 0.5–1% per annum.
| Section | What it covers | Annual limit | Condition |
|---|---|---|---|
| Section 24(b) | Home loan interest deduction | ₹2,00,000 | Only for self-occupied property. Possession must be taken |
| Section 80C | Principal repayment | ₹1,50,000 (combined 80C) | Within the overall 80C ceiling with PF, ELSS, LIC etc. |
| Section 80EEA | Additional interest for affordable housing | ₹1,50,000 extra | Stamp duty value ≤ ₹45L, loan sanctioned before March 2022 |
| Section 80EE | First-time buyer benefit | ₹50,000 extra | Loan ≤ ₹35L, property value ≤ ₹50L, first home |
Old vs new tax regime
Under the new tax regime (default from FY2024-25), Sections 24(b) and 80C deductions are NOT available. If your home loan benefits are significant, calculate whether old regime is more beneficial before switching. Consult your CA — this is individual-specific.
✓
Final checklistComplete first home buyer checklist — print this before you sign
Before shortlisting
- Calculated maximum EMI (40% of take-home, net of existing EMIs)
- Estimated full upfront cash (down payment + stamp duty + registration + costs)
- Checked own CIBIL score and cleared any errors
- Compared at least 3 lenders on rate, processing fee, part-payment rules
- Decided under-construction vs resale based on move-in timeline
Before booking
- Verified RERA registration on official state portal
- Read RERA filing — delivery date, carpet area, sanctioned plan
- Appointed a property lawyer for title / legal verification
- Confirmed stamp duty amount for your state and buyer profile
- Read the sale agreement in full — never sign without reading
Before possession
- Carried out physical snagging inspection — documented all issues
- Received Occupancy Certificate from builder
- Verified actual carpet area matches registered agreement
- Applied for mutation / Khata transfer within 30 days
- Stored scanned copies of all documents in cloud (Drive / Dropbox)
Start here
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