Your Complete First Home Buying Guide in India
Buying your first home in India involves far more than just the property price — registration charges (5-7%), stamp duty, loan processing fees, and GST on under-construction properties can add 10-15% to your total outlay. Most banks will finance up to 75-90% of the property value depending on the loan amount, meaning you need to arrange ₹10-25 lakh as down payment on a ₹1 crore property. First-time buyers under the PMAY Credit Linked Subsidy Scheme (CLSS) can claim interest subsidy of up to ₹2.67 lakh on home loans.
Frequently asked questions
Quick answer
How much salary do I need to get a ₹50 lakh home loan?
Most banks require your EMI-to-income ratio to be below 40-50%. For a ₹50 lakh loan at 9% for 20 years, the EMI is roughly ₹45,000, so you need a net monthly income of at least ₹90,000-₹1.1 lakh. Having no existing EMIs significantly improves your eligibility.
How much salary do I need to get a ₹50 lakh home loan?
Most banks require your EMI-to-income ratio to be below 40-50%. For a ₹50 lakh loan at 9% for 20 years, the EMI is roughly ₹45,000, so you need a net monthly income of at least ₹90,000-₹1.1 lakh. Having no existing EMIs significantly improves your eligibility.
What documents are required for a first home loan in India?
You will need KYC documents (Aadhaar, PAN), last 3 months' salary slips, 6 months' bank statements, Form 16, and property documents such as the sale agreement and title deed. Self-employed applicants also need 2-3 years' ITR and business financials.
Can I claim tax benefit on home loan as a first-time buyer?
Yes. Under Section 24(b), you can claim up to ₹2 lakh deduction on home loan interest per year. Under Section 80C, principal repayment up to ₹1.5 lakh is deductible. First-time buyers can also claim an additional ₹50,000 under Section 80EEA if the stamp duty value of the property is up to ₹45 lakh.
What is the total cost of buying a ₹1 crore flat in India?
Beyond the property price, expect to pay 5-7% as stamp duty and registration (₹5-7 lakh), GST of 5% if under construction (₹5 lakh), loan processing fees of 0.25-1% (₹12,500-50,000), and interior/moving costs. Total additional outlay can easily reach ₹12-15 lakh on a ₹1 crore property.