Home loans: how much EMI can you really afford?

The 40% rule of thumb

A common guideline: keep your total EMIs under about 40% of your monthly take-home income. Lenders look at this too when deciding eligibility. Use the EMI calculator on any property page to see your monthly outgo instantly.

Costs people forget

The sticker price isn't the full cost. Budget for:

• • Stamp duty and registration charges.
• • GST (on under-construction properties).
• • Down payment — usually 10-20% of the price.
• • Interiors, maintenance deposits and moving costs.

Tip: get a loan pre-approval before you start serious house-hunting. It tells you your real budget and makes you a stronger buyer.