How Much Down Payment Do You Need to Buy a House in India?

The down payment is the first real test of a home purchase — the lump sum that turns a dream into a deal. Get the number right and everything downstream (your loan, your EMI, your peace of mind) falls into place. Underestimate it, and you'll be scrambling weeks before registration. Here's exactly how much you need, and why the sticker percentage isn't the whole story.

The 10–20% rule

Under RBI norms, lenders can finance up to 75–90% of a property's value — the loan-to-value (LTV) ratio. The rest is your down payment. For most home loans that means putting down 10–20% of the price yourself. On a ₹50 lakh flat, that's ₹5–10 lakh just as the deposit. Higher-value homes usually require a larger percentage down.

Why the percentage understates the cash you need

The trap most first-time buyers fall into is budgeting only for the down payment. The loan covers the property value — not the costs of buying it. On top of your deposit you'll pay:

• Stamp duty and registration — around 6–8% of the price, paid upfront. See our guide to stamp duty and registration charges.
• Brokerage — often about 1% if you used an agent.
• Interiors, furniture and moving — easily a few lakh more.

So a “20% down” plan on a ₹60 lakh home is really closer to ₹15–18 lakh once everything is counted.

Why a bigger down payment pays off

If you can comfortably put down more than the minimum, it usually helps:

• Smaller loan, smaller EMI. Every extra lakh down is a lakh you don't borrow — or pay interest on for 20 years.
• Less total interest. On a long loan, a bigger deposit can save several lakh over the tenure.
• Easier approval and better rates. A lower LTV is less risky for the lender, which can mean a smoother sanction.

The one caveat: don't empty your emergency fund to make a larger down payment. Being “house-rich and cash-poor” on day one is a stressful place to start.

How much loan is left after your down payment?

Your down payment and your loan are two halves of the same sum. Decide the deposit you can manage, and the loan — and therefore the EMI — follows. Use our EMI calculator to see the monthly figure for any loan amount, and read how much home loan you can afford to make sure the EMI fits your income.

Where to keep your down payment while you save

Money you'll need within a year or two shouldn't be in the stock market — a bad month could shrink it right when you need it. Keep a near-term down payment in safe, liquid places: a sweep-in fixed deposit, a short-term recurring deposit, or a liquid fund. The goal is capital protection, not maximum return. For a longer runway, see how to save a down payment in three years.

Plan the whole number, not just the deposit

The buyers who sail through registration are the ones who planned for every rupee — deposit, duty, charges and a buffer — months in advance. HomeFin's savings goals let you set a target for exactly this and track it as it grows, while the affordability calculator shows the home price your income supports. Know your full upfront number early, and the rest of the purchase becomes calm and confident.