Loans & Mortgages•6 min read•Published: 2025-03-18
How Much House Can You Afford? Down Payment, EMIs & Hidden Costs
As a rule of thumb, total property price should not exceed 4x to 5x of your gross annual household income.
Key Financial Takeaways
- Property price = 4x to 5x annual income maximum.
- Account for 7% to 10% additional upfront expenses for stamp duty, registration, interior furnishing, and society deposits.
- Ensure your EMI remains below 35% of monthly net income.
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Affordability Tiers by Income
Annual Income ₹15 Lakh: Max affordable home ₹60L to ₹75L.
Annual Income ₹25 Lakh: Max affordable home ₹1 Crore to ₹1.25 Crore.
Annual Income ₹40 Lakh: Max affordable home ₹1.6 Crore to ₹2 Crore.
Frequently Asked Questions
Can I borrow 100% of the property value?
No, RBI mandates maximum Loan to Value (LTV) ratios: 90% for loans up to ₹30L, 80% for ₹30L-₹75L, and 75% for loans above ₹75L.
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