Decision 3 of 5

How much home can you afford?

A lender's limit, a comfort limit and a cash limit each cap the price. The lowest one is your real budget. These guides work it through with numbers.

The numbers to start with

₹1.54 cr · ₹1.08 cr · ₹54 lakh
Price allowed by the lender, by comfort and by cash, for one illustrative ₹25 lakh household
Illustration
₹42.3 lakh
Cash needed to buy the ₹1.08 crore flat: down payment, stamp duty and six months' reserve
Illustration
50% · 55% · 60%
SBI's maximum EMI as a share of net monthly income for loans against property, rising with income
Source: State Bank of India

Recommended first read
How much home can you afford? Three limits, and the lowest one wins
Banks tell you the most they will lend. That is only one of three limits. On the same ₹25 lakh salary, the lender's limit allowed a ₹1.54 crore flat, comfort allowed ₹1.08 crore, and ₹25 lakh of savings allowed only about ₹54 lakh.
Buyer Guide · 3 min readRead this first →
On ₹40 LPA, a bank may lend you ₹1.85 crore. Here's what you can actually afford.
The loan a bank will approve and the home you can comfortably afford are different numbers. We worked through three households on the same ₹40 LPA salary: their comfortable budgets range from about ₹1.19 crore to ₹1.81 crore, and each needs ₹49–69 lakh in cash up front.
Buyer Guide · 4 min read
FOIR: the number that decides your home loan, and why every bank works it out differently
FOIR is the share of your income already going to EMIs. Lenders use it to decide how much they'll lend, but there's no single national limit, and banks don't all count income the same way. Here's how it works, with the maths.
Buyer Guide · 4 min read

Next decision

Is the asking price fair?

See how its asking price and your finances fit together. Start with a free snapshot.