The most common home-buying mistake in India: buying as much house as the bank will lend you. The bank’s maximum loan amount is not the same as what you can comfortably afford. Here is how to calculate your real number.
The 30% rule for EMIs
Your total monthly EMIs (home loan + any other loans) should not exceed 30–35% of your take-home salary. If your take-home is ₹80,000/month, your EMI should not exceed ₹24,000–28,000/month.
| Take-Home Salary | Max Monthly EMI (30%) | Affordable Loan Amount (20yr, 9%) |
|---|---|---|
| ₹50,000 | ₹15,000 | ~₹17 Lakhs |
| ₹80,000 | ₹24,000 | ~₹27 Lakhs |
| ₹1,00,000 | ₹30,000 | ~₹33 Lakhs |
| ₹1,50,000 | ₹45,000 | ~₹50 Lakhs |
Beyond the EMI, budget for registration costs (5–7%), stamp duty, interior fit-out, and a maintenance corpus. The complete rent vs buy decision: renting vs buying in India. And the bigger question: home loan vs investing.