Goal 05 · Milestones
Buying a home
Make the dream home a plan, before it becomes an EMI.
Roti, kapda, makaan. A home of your own brings security, pride and a sense of arrival. It is also the biggest financial decision most families make, and the interest on a home loan can exceed the loan itself. That is why the planning has to happen before the booking, not after.
A larger down payment halves the burden
Banks lend up to 80% of a property's value, but borrowing the maximum is rarely wise. Paying a bigger share from savings, ideally 40% to 60%, cuts the EMI, cuts the interest by lakhs, and leaves room in the monthly budget for everything else. Building that down payment is a goal in its own right, and equity SIPs suit it well when the purchase is five or more years away.
Build the down payment before the EMI starts
The share you want to fund yourself, property inflation, the years to purchase, and the SIP that gets you there.
- What you put in · ₹69 lakh
- What compounding adds · ₹64 lakh
Illustration for education only. Every figure is an arithmetical working on the inputs above; assumed returns are not a forecast and no return is assured. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
What you can expect
A total cost estimate: price, stamp duty, registration, interiors, inflated to the year you plan to buy
A down-payment target and a monthly SIP to reach it
An EMI ceiling of no more than about 30% of income, so the house never crowds out other goals
A readiness checklist: emergency fund, existing debts cleared, three months' EMI in reserve, term cover for the loan
Who this is for
First-time buyers building a down payment
Families upgrading and planning the bridge between two homes
Anyone who wants to borrow less and own more
4 steps, in order.
Cost the whole purchase
Price plus stamp duty, registration and interiors. Property prices in major cities have historically risen around 4% a year; build that in.
Decide the split
Aim to fund 40% to 60% yourself. The table below shows why.
Build the down payment
A SIP in equity funds if the purchase is five or more years away; debt funds as it nears.
Prepare the household
An emergency fund of six months, existing loans cleared, an EMI reserve, and term insurance that covers the outstanding loan.
The questions clients actually ask.
Solutions this goal uses
It depends on the gap between your savings and the price, your job stability and how prices are moving where you want to live. We run both scenarios so the decision is a number, not a feeling.
Keep the EMI within about 30% of take-home income. Above that, other goals and the emergency fund start to suffer.
In equity funds if the purchase is five or more years away, moving to debt funds and fixed deposits in the last two years so a market fall cannot delay the purchase.
Stamp duty and registration, interiors and furnishing, society deposits, moving costs, and the higher monthly outgo on maintenance and utilities.
Usually yes. It improves your credit standing, reduces the monthly load and lets the bank offer better terms.
A term policy that covers the outstanding amount protects the family from inheriting the EMI. We recommend it before the loan is drawn.
Planning a home in the next few years?
Let's cost it properly and build the down payment before the EMI starts.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Sanriya Finvest Pvt. Ltd. is an AMFI-registered Mutual Fund Distributor (ARN-193359); the guidance on this page is incidental to our mutual fund distribution services and is not a recommendation to buy or sell any scheme.