Buying Your First Home: From Down Payment to EMIs

Making your dream home a reality—with clarity, planning, and confidence.

1. Check Your Eligibility

Banks require: Age 21–71, ₹10k–25k monthly income, CIBIL ≥700, 2–5 yrs job history . Keep EMIs under 40% of income.

2. Save for the Down Payment

Aim for 10–20% of property value to:

• Avoid mortgage insurance

• Secure better interest rates

3. Explore Government Schemes & Tax Breaks

PMAY offers subsides up to ₹2.67 lakh. Under section 80C, save up to ₹1.5 lakh on principal; section 24(b) gives ₹2 lakh interest deduction.

4. Choose the Right Loan — EMIs & Prepayment

Use EMI calculators to weigh price vs. tenure. RBI rules allow prepayment on floating loans without penalty.

5. Compare Interest Rates & Banks

Float vs fixed rates, features, foreclosure options—research before selecting. Some PSU banks (like BoM) offer no penalty on prepayments .

6. Plan Your Budget Post-Home Purchase

Include maintenance, property tax, insurance, utilities in monthly budgets. Continue emergency savings as life changes.

Your Roadmap to Homeownership

1. Check eligibility & CIBIL score

2. Estimate total cost + Down Payment

3. Research schemes & tax deductions

4. Choose loan & use EMI calculators

5. Lock in a competitive rate

6. Prepay when surplus to save interest

7. Monitor updates—like BoM’s foreclosure rules

References

HomeBazaar: Home loan criteria and incentives

Investopedia: Prepayment rules