How much should I save before buying a house in India?

[Priya]

I’ve been thinking about purchasing a house in India, but I’m unsure about how much I need to save up first. Can anyone share some insights or tips on this?

• This topic was modified 7 months, 2 weeks ago by gaichermaickel.

[Anand]

Hi Priya, a good rule of thumb is to save at least 20% of the property’s price for the down payment. This way, you can avoid private mortgage insurance (PMI) and get better loan terms.

[Sanjay]

I agree with Anand. Besides the down payment, you should also have an emergency fund that covers 6 to 12 months of living expenses. It will ensure you’re financially secure even after making the big purchase.

[Kavitha]

Don’t forget about the additional costs like registration fees, stamp duty, and legal charges. These can add up to 7-8% of the property cost, so consider it also while planning.

[Rajesh]

Also consider the cost of furnishing and moving into your new home. Save a bit extra for these costs.

[Lakshmi]

It’s wise to get pre-approved for a home loan before you start house hunting. This will give you a clear idea of how much you can borrow and what your budget should be.

[Rani]

Another tip is to avoid making any major purchases or taking on new debt in the months leading up to buying a house. This can negatively affect your credit score and loan approval chances.