How Much Down Payment Do You Need on a ₹1 Crore Home?
If you’re buying a ₹1 crore home in India, plan for a minimum down payment of around ₹25 lakh, assuming the lender finances up to 75% of the property’s assessed value. You’ll also need money for stamp duty, registration, and other purchase expenses, which can increase the total amount you need to arrange upfront.
The exact amount depends on the lender’s loan-to-value (LTV) limit, your eligibility, and the property valuation. Before committing to a property, it helps to understand how much you must pay from your savings and how much you may be able to borrow. With Nestara, you can explore new home loan requirements and check your estimated eligibility before planning your purchase.
What Is the Down Payment for a ₹1 Crore Home?
For a ₹1 crore residential property, a 25% down payment works out to ₹25 lakh, leaving ₹75 lakh to be financed through a home loan. This is based on the 75% maximum LTV applicable to individual housing loans above ₹75 lakh under the cited bank housing-finance framework.
Here’s how the cost could be split:
| Component | Amount |
|---|---|
| Property price | ₹1,00,00,000 |
| Illustrative maximum loan at 75% LTV | ₹75,00,000 |
| Minimum own contribution towards property price | ₹25,00,000 |
| Stamp duty, registration and other costs | Additional |
Important: The 75% figure is a lending limit, not a promise that every borrower will receive a ₹75 lakh loan. A lender may offer less based on your income, existing EMIs, credit profile, property valuation, and internal lending criteria.
How Does the RBI’s Loan-to-Value (LTV) Rule Affect Your Down Payment?
The loan-to-value ratio measures the loan amount against the value of the property accepted by the lender. For example, a 75% LTV means the lender finances up to ₹75 for every ₹100 of assessed property value, while you contribute the remaining ₹25.
The RBI housing-finance framework cited for individual housing loans sets these LTV ceilings for banks:
| Housing loan category | Maximum LTV | Your contribution towards property value |
|---|---|---|
| Up to ₹20 lakh | 90% | At least 10% |
| Above ₹20 lakh and up to ₹75 lakh | 80% | At least 20% |
| Above ₹75 lakh | 75% | At least 25% |
These categories refer to the loan amount, not simply the property price. A ₹1 crore property financed with a ₹75 lakh loan falls into the above-₹75-lakh category, so the 75% LTV ceiling is relevant.
The lender also assesses the property’s value. If you agree to buy a home for ₹1 crore but the lender values it at ₹95 lakh, a 75% LTV would mean a loan of up to ₹71.25 lakh on that valuation. You would need to cover the remaining ₹28.75 lakh of the purchase price yourself, plus transaction costs.
What Additional Costs Should You Budget for?
Your down payment is not the only upfront expense when buying a ₹1 crore home. Stamp duty, registration charges and other transaction expenses generally need to be paid separately because they are not included in the property cost used for the bank’s LTV calculation, subject to limited exceptions for low-value homes.
Depending on the state, property type and transaction, you may need to budget for:
- Stamp duty: The amount and applicable concessions vary by state and circumstances.
- Registration charges: Payable to register the property in your name.
- Legal and documentation expenses: These may include property verification and paperwork.
- Brokerage, if applicable: Depends on your agreement with the broker.
- Moving, furnishing and repairs: These are separate from the purchase price.
- Loan-related charges: Ask the lender for a written breakdown of applicable processing and other charges.
For example, if your down payment is ₹25 lakh, your total upfront requirement will be ₹25 lakh plus these additional expenses. Don’t assume that a home loan will cover every cost associated with purchasing the property.
How Much Money Should You Have Before Buying a ₹1 Crore Home?
You should have enough savings to cover the down payment, purchase expenses and a reasonable financial buffer without exhausting all your emergency funds.
Consider this illustrative planning table. The extra-cost figures below are not estimates of actual state charges; they show how additional expenses increase the amount you must arrange.
| Down payment | Additional purchase costs | Total upfront funds needed |
|---|---|---|
| ₹25 lakh | ₹5 lakh | ₹30 lakh |
| ₹25 lakh | ₹8 lakh | ₹33 lakh |
| ₹30 lakh | ₹8 lakh | ₹38 lakh |
Your actual expenses could be lower or higher. Check the applicable stamp duty and registration rates for your state before finalising your budget.
It’s also wise to retain an emergency fund for unexpected expenses and future EMI payments. Using every rupee of savings for the purchase can leave you financially stretched after moving in.
Can You Get a Home Loan for More Than 75% of a ₹1 Crore Property?
For a standard individual housing loan from a bank, the cited LTV framework limits financing to 75% for loan amounts above ₹75 lakh. You should therefore plan around a contribution of at least 25% towards the property price, rather than assuming you can borrow 80% or 90% of a ₹1 crore home’s value.
Even if your income is high enough to support a ₹75 lakh loan, the lender still has to evaluate your application. Existing EMIs, credit history, income stability, tenure, and property documents can affect the final sanction.
If you need to borrow less, you could consider increasing your down payment, choosing a less expensive property, or reviewing your existing financial commitments before applying. Adding a co-applicant may help in some cases, but it does not guarantee a higher loan amount.
You can also read our guide on how banks decide your home loan eligibility to understand what lenders assess before approving a loan.
How Can You Plan Your Down Payment Before Applying?
You can plan your down payment more confidently by estimating your eligibility and calculating the total cash you need before paying a booking amount.
Follow these steps:
- Confirm the property price and valuation. The lender’s assessed value may differ from the negotiated price.
- Calculate your likely own contribution. For a ₹1 crore property, use ₹25 lakh as a starting point under the 75% LTV assumption.
- Estimate additional expenses. Check state-specific stamp duty, registration and other applicable charges.
- Review your repayment capacity. Your income, existing EMIs and credit profile affect the loan a lender may approve.
- Keep a cash buffer. Avoid using all your savings for the down payment.
Conclusion: Plan Your ₹1 Crore Home Purchase with Confidence
For a ₹1 crore home, ₹25 lakh is a useful starting estimate for the down payment, assuming a bank finances up to 75% of the assessed property value. You’ll need additional funds for stamp duty, registration and other expenses, and your lender may sanction a smaller loan depending on your profile and the property valuation.
Before booking a home, calculate your likely loan eligibility, check the full upfront cost and make sure the EMI fits comfortably within your monthly budget. Start with Nestara’s new home loan journey to estimate your borrowing capacity and take the next step towards a well-planned home purchase.
FAQs
Is ₹25 lakh enough for a down payment on a ₹1 crore home?
₹25 lakh covers 25% of a ₹1 crore property’s price. It may be enough for the down payment if the lender finances the remaining ₹75 lakh and accepts the full property value. You’ll still need additional funds for stamp duty, registration and other expenses.
Can I get a ₹80 lakh home loan for a ₹1 crore property?
Under the cited bank LTV framework, a loan of ₹80 lakh against a ₹1 crore property would mean an 80% LTV, above the 75% ceiling applicable to individual housing loans above ₹75 lakh. Plan for a larger own contribution and confirm the applicable rules and lender terms before proceeding.
Are stamp duty and registration included in the home loan?
Generally, stamp duty, registration and other documentation charges are excluded from the property cost used to calculate LTV. You should budget for these expenses separately.
Does a higher salary reduce the required down payment?
Not automatically. A higher income may help you qualify for a larger loan based on repayment capacity, but the applicable LTV ceiling and the lender’s property valuation still matter. Your credit profile and existing EMIs can also affect the sanction.
Should I use all my savings to pay the down payment?
No. Keep enough savings for emergencies, moving expenses and unexpected costs after the purchase. A manageable down payment should leave you with a financial buffer as well as an EMI you can comfortably afford.
