How much house can I afford?
Two things decide it: what RBI lets a bank lend against the property, and what your income can service. Then there's the part nobody budgets for — stamp duty and registration are not covered by the loan, and on a ₹1 crore flat that's several lakh in cash on top of the down payment. Everything here is worked out in your browser; nothing you type is sent anywhere.
Pay a little extra each year, and finish years early
The early years of an EMI are almost entirely interest, so money put in now is worth far more than money put in later. This is the same loan, ended early — and what it takes to do it.
| Extra paid each year | Loan ends in | Total interest | You save |
|---|---|---|---|
| Nothing | 20 yrs | ₹8,120,818 | — |
| ₹109,422₹9,119/month | 15 yrs | ₹5,856,950 | ₹2,263,868 |
| ₹226,706₹18,892/month | 12 yrs | ₹4,592,965 | ₹3,527,854 |
| ₹348,188₹29,016/month | 10 yrs | ₹3,792,286 | ₹4,328,532 |
| ₹669,944₹55,829/month | 7 yrs | ₹2,656,891 | ₹5,463,927 |
| ₹1,107,951₹92,329/month | 5 yrs | ₹1,944,959 | ₹6,175,860 |
What a ₹1 crore home actually costs
Take a ₹1 crore flat in Karnataka, the most common shape of this decision. RBI's slab for a loan above ₹75 lakh caps the bank at 75% of the property value, so it lends ₹7,500,000 and you put down ₹2,500,000.
Then stamp duty and registration — ₹600,000 — which the loan does not cover. Your cash requirement is ₹3,100,000, not the ₹2,500,000 most people budget. That gap is the single most common miss in an Indian home purchase.
How much a bank may lend (RBI loan-to-value caps)
| Loan amount | Max loan-to-value | On a ₹1 crore property |
|---|---|---|
| up to ₹30 lakh | 90% | ₹9,000,000 |
| ₹30–75 lakh | 80% | ₹8,000,000 |
| above ₹75 lakh | 75% | ₹7,500,000 |
These are ceilings, not entitlements — a lender may offer less. Your income caps it separately: most keep the EMI under about 50% of net monthly income, and whichever limit binds first is what you're offered.
Stamp duty & registration by state
| State | Stamp duty | Registration | If bought in a woman's name | On ₹1 crore |
|---|---|---|---|---|
| Maharashtra (Mumbai) | 6% | 1% | 5% | ₹7,000,000 |
| Maharashtra (Pune/Nagpur) | 7% | 1% | 6% | ₹8,000,000 |
| Karnataka | 5% | 1% | same | ₹6,000,000 |
| Delhi | 6% | 1% | 4% | ₹7,000,000 |
| Tamil Nadu | 7% | 4% | same | ₹11,000,000 |
| Telangana | 5.5% | 0.5% | same | ₹6,000,000 |
| Haryana | 7% | 1% | 5% | ₹8,000,000 |
| Uttar Pradesh | 7% | 1% | 6% | ₹8,000,000 |
| Gujarat | 4.9% | 1% | same | ₹5,900,000 |
| West Bengal | 6% | 1% | same | ₹7,000,000 |
| Rajasthan | 6% | 1% | 5% | ₹7,000,000 |
| Madhya Pradesh | 7.5% | 1% | same | ₹8,500,000 |
| Kerala | 8% | 2% | same | ₹10,000,000 |
| Punjab | 7% | 1% | 5% | ₹8,000,000 |
| Andhra Pradesh | 5% | 1% | same | ₹6,000,000 |
Indicative. Rates move with state budgets and differ by city, by property type, and sometimes by the buyer's gender — several states charge 1–2% less when the property is registered in a woman's name, which on ₹1 crore is ₹1–2 lakh for a change of name on the deed. Confirm with the sub-registrar before you budget.
Common questions
- How much home loan can I get?
- RBI caps it by slab: up to 90% of the property value for loans up to ₹30 lakh, 80% between ₹30 and ₹75 lakh, and 75% above ₹75 lakh. Your income caps it separately — most lenders keep the EMI under about half your net monthly income. Whichever of the two is lower is what you'll actually be offered.
- Is stamp duty included in the home loan?
- No. RBI excludes stamp duty and registration charges from the property value when working out loan-to-value, so they come out of your own pocket on top of the down payment. The only exception is loans up to ₹10 lakh, where documentation charges may be added in. On a ₹1 crore flat that's another ₹5–10 lakh in cash, and it's the most common thing buyers forget to budget for.
- How much down payment do I need for a house?
- At least 10–25% of the price depending on the loan slab, plus stamp duty and registration. On a ₹1 crore property in Karnataka that's ₹25 lakh down plus about ₹6 lakh in duty — ₹31 lakh in cash, not ₹25 lakh.
- Does prepaying a home loan actually help?
- Enormously, and earlier is worth far more than later, because the early years of an EMI are almost entirely interest. On a ₹75 lakh loan at 8.5% over 20 years, paying roughly ₹1.1 lakh extra a year — about ₹9,000 a month — ends the loan five years early and saves over ₹22 lakh in interest.
- Should I prepay the loan or invest the money instead?
- Compare your loan rate against what you'd earn after tax, and remember a prepayment is a guaranteed, risk-free return equal to your interest rate. At 8.5% that's a high bar. Interest on a self-occupied house is deductible up to ₹2 lakh a year under the old regime, which lowers the effective rate — but under the new regime there's no such deduction, so prepaying is worth more.
- Is registration cheaper if the property is in a woman's name?
- In several states, yes. Delhi charges 4% instead of 6%, Haryana and Punjab 5% instead of 7%, Maharashtra and UP 1% less. On a ₹1 crore property that's ₹1–2 lakh saved for a change of name on the deed.
A house is one line in a bigger picture.
Networthy HQ tracks the property and the loan against it — net worth counts the home at market value and subtracts what's still owed, so you can watch the gap close.
Also useful: work out your net worth, how much you need to retire, and where your net worth ranks.
Stamp duty rates and RBI's loan-to-value caps are as we understand them and change over time; a lender's own policy may be stricter. Confirm the duty with your sub-registrar and the offer with your bank before committing to anything. Networthy HQ isn't financial advice — see Terms.