Calculate the down payment needed for a home loan and plan your savings accordingly.
| Property Price | — |
| Down Payment Required | — |
| Loan Amount | — |
| Monthly EMI | — |
| Total Interest Payable | — |
RBI guidelines cap how much of the property value a bank can finance (LTV ratio): up to 90% for loans up to ₹30 lakh, 80% for ₹30-75 lakh, and 75% above ₹75 lakh (RBI Master Circular). That means a minimum down payment of 10%/20%/25% respectively - banks may ask for more. A higher down payment reduces your EMI and total interest paid.
Q: Can I pay more than 20% as down payment?
A: Yes, and it is advisable if you have the funds. A 30-40% down payment significantly reduces your EMI and total interest outgo. However, do not exhaust your emergency fund for this purpose.
Q: What costs are included in total home buying cost?
A: Besides down payment, budget for stamp duty (4-7% of property value), registration charges (1%), GST on under-construction property (5%), and home loan processing fees (0.5-1%).
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