Planning to Buy a ₹1 Crore Home on a Loan? Here’s the Minimum Salary You’ll Need

Owning a home is everyone’s dream, but with property prices touching new highs, even salaried individuals find it tough to make that dream come true. That’s why more people are turning to home loans. But before you rush to sign the papers, it’s crucial to understand how much you can actually afford.

Many buyers make the mistake of choosing a house beyond their means, thinking they just have to manage the EMIs. In reality, buying a home should fit comfortably within your income, not stretch it to the limit.

Here’s how to plan it right:

Your home budget should ideally be between 3 to 5 times your annual income. For instance, if you earn ₹10 lakh a year, your home budget should range between ₹30 lakh and ₹50 lakh.

If you’re eyeing a ₹1 crore property, your annual income should be around ₹20 lakh, that means a monthly salary of roughly ₹1.66 lakh. Anything lower can put serious pressure on your finances.

Smart home loan tips :

When taking a home loan, try to make a 40% down payment. This reduces your loan amount and overall interest burden. Your monthly EMI should not exceed 30% of your monthly income, that’s the golden rule for financial comfort.

Also, avoid dragging your loan tenure beyond 20 years. A longer term might mean smaller EMIs, but you’ll end up paying a much higher total interest.

Buying a home is one of life’s biggest decisions, so plan wisely, borrow smartly, and make sure your dream home doesn’t become a financial burden.