What is the House Down Payment?
Most first-time buyers budget only the down payment and are caught out by everything else. Banks fund 75–90% of property value, so you need 10–25% down — but stamp duty and registration add another 5–8%, and interiors, brokerage and moving can add several lakh more.
Realistically, plan for 25–35% of the property price in cash.
Formula & worked example
Total cash = Down payment + stamp duty + other costs
SIP = (Total − existing savings grown) × i / (((1+i)N − 1) × (1+i))
Worked example: an ₹80,00,000 home at 80% LTV needs ₹16 lakh down, plus ₹5.6 lakh stamp duty and ₹5 lakh of setup = ₹26.6 lakh. With ₹8 lakh saved (growing to ₹11.5 lakh at 9% over 4 years), you need ₹15.1 lakh more — a SIP of about ₹26,200 a month.
How to use this house down payment calculator
- Enter the property price you are targeting.
- Set LTV — 80% is typical; loans above ₹75 lakh often get less.
- Stamp duty varies by state, from about 4% to 8%.
- Add interiors and brokerage honestly — these routinely run ₹5–15 lakh.
Smart tips
- A larger down payment cuts both EMI and total interest, and improves your negotiating position.
- Keep down-payment savings in debt funds or FDs if buying within 3 years. Equity is too volatile for a fixed deadline.
- Several states offer 1–2% stamp duty concessions for female buyers — worth structuring for.
- Never drain your emergency fund for a down payment. You will need it more as a homeowner, not less.
- Budget 1–2% of property value annually for maintenance once you own it.
Frequently asked questions
How much down payment do I need for a home in India?
Banks fund 75–90%, so 10–25% down. Including stamp duty and setup costs, plan for 25–35% of the price in cash.
Can I use a personal loan for the down payment?
Technically possible but a bad idea. Lenders check for it, it inflates your DTI, and 14% debt on top of a 9% home loan is expensive.
Is stamp duty part of the loan?
Usually not. Most banks exclude stamp duty and registration from the loan amount, so you must fund it yourself.
Where should I keep down-payment savings?
Debt funds, fixed deposits or short-duration funds for horizons under 3 years. Equity risks a fall right when you need the money.
Want the theory behind the numbers? Read our home buying guides on the Money Blog.