How Much CTC Do You Need to Buy a ₹1 Crore Home in India?
This article explores how your CTC translates to in-hand salary, maximum loan eligibility, and the right down payment for your dream house.
How Much CTC Do You Need to Buy a ₹1 Crore Home in India?
Posted on 27 Nov 2024
Author: Sayan Sircar
Tags: 
House Purchase
8 mins read
House Purchase
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This article explores how your CTC translates to in-hand salary, maximum loan eligibility, and the right down payment for your dream house.
📚 Topics covered:
- What is the CTC needed to buy a 1 crore house in India?
- What is the right amount of downpayment for a house?
- How does CTC translate to cost of the house?
- What is the house price for CTC up to 50 lakhs?
- What is the house price for CTC up to 1 crore?
- What is the house price for CTC up to 2 crores?
- What is the house price for CTC more than 2 crores?
What is the CTC needed to buy a 1 crore house in India?
30 lakhs at-least.
For a house bought via home loan, the maximum cost of the house is determined by the amount of loan the bank will provide. Most banks do not provide a loan that exceeds more than 30-40% of the borrower’s (either single or jointly) combined monthly income.
We have covered home-loan eligibility numbers in detail here: Home Loan Eligibility for Joint Applicants: how to buy a bigger house
What is the right amount of downpayment for a house?
There are two schools of thought on this topic:
- as much as you can put down so that you take the least amount of loan
- take the maximum loan and then invest the rest for long-term goals like retirement
The best amount of downpayment is more nuanced and is completely dependent on the personal situation of the family buying the house. Our view in this article is to keep things simple and assume that the buyers are looking to get by with the least amount of down-payment, around 20% of the cost of the house and take the maximum loan.
How does CTC translate to cost of the house?
CTC to in-hand; in-hand to loan-eligibility based on maximum monthly EMI; EMI to maximum loan amount
House price = Down-payment + Maximum loan amount
This table shows a mapping of CTC numbers (in the new tax regime) to the cost of house. We have used the Arthgyaan new-vs-old tax-regime calculator for going from CTC to in-hand salary: Which is the best tax regime to choose from April?.
Note: To keep things comparable across companies, we have used gross income as a proxy for CTC. In reality, depending on the salary structure, the actual CTC will be higher than the gross income.
We have also assumed around 1% EMI (1crore loan has 1 lakh EMI) as per our [home-loan EMI calculator] (/blog/how-much-emi-do-i-have-to-pay-for-my-home-loan.html) and assumed that the bank lends 75% of the property price.
What is the house price for CTC up to 50 lakhs?
All the numbers in the tables below are in ₹ lakhs.
| CTC | In-Hand | EMI | Loan | House price |
|---|---|---|---|---|
| 10 | 0.80 | 0.32 | 31 | 42 |
| 15 | 1.14 | 0.46 | 45 | 60 |
| 20 | 1.43 | 0.57 | 57 | 75 |
| 25 | 1.72 | 0.69 | 68 | 91 |
| 30 | 2.01 | 0.80 | 79 | 106 |
| 35 | 2.29 | 0.92 | 91 | 121 |
| 40 | 2.58 | 1.03 | 102 | 136 |
| 45 | 2.87 | 1.15 | 113 | 151 |
| 50 | 3.15 | 1.26 | 124 | 166 |
As the above table shows, with a 25% down-payment, the CTC needed to buy a 1 crore house is around ₹30 lakhs. This is for a ready-to-move property. For under-construction, the house can be a bit more expensive: How to Buy Your Dream Home Without Any Savings: A Step-by-Step Guide.
You can also buy a bigger house if you can arrange for a higher down-payment.
To understand how to plan such a house purchase:
Also read
What Policyholders Must Know about IRDA's Master Circular on Health Insurance Business (29/05/2024)?
What Policyholders Must Know about IRDA's Master Circular on Health Insurance Business (29/05/2024)?
What is the house price for CTC up to 1 crore?
| CTC | In-Hand | EMI | Loan | House price |
|---|---|---|---|---|
| 50 | 3.15 | 1.26 | 124 | 166 |
| 55 | 3.33 | 1.33 | 131 | 175 |
| 60 | 3.60 | 1.44 | 142 | 189 |
| 65 | 3.87 | 1.55 | 153 | 204 |
| 70 | 4.15 | 1.66 | 164 | 218 |
| 75 | 4.42 | 1.77 | 174 | 233 |
| 80 | 4.70 | 1.88 | 185 | 247 |
| 85 | 4.97 | 1.99 | 196 | 261 |
| 90 | 5.24 | 2.10 | 207 | 276 |
| 95 | 5.52 | 2.21 | 218 | 290 |
| 100 | 5.79 | 2.32 | 228 | 304 |
What is the house price for CTC up to 2 crores?
| CTC | In-Hand | EMI | Loan | House price |
|---|---|---|---|---|
| 100 | 5.79 | 2.32 | 228 | 304 |
| 110 | 6.21 | 2.48 | 245 | 326 |
| 120 | 6.74 | 2.70 | 266 | 355 |
| 130 | 7.28 | 2.91 | 287 | 383 |
| 140 | 7.81 | 3.12 | 308 | 411 |
| 150 | 8.35 | 3.34 | 329 | 439 |
| 160 | 8.88 | 3.55 | 350 | 467 |
| 170 | 9.42 | 3.77 | 371 | 495 |
| 180 | 9.95 | 3.98 | 392 | 523 |
| 190 | 10.48 | 4.19 | 413 | 551 |
| 200 | 11.02 | 4.41 | 435 | 579 |
What is the house price for CTC more than 2 crores?
| CTC | In-Hand | EMI | Loan | House price |
|---|---|---|---|---|
| 200 | 11.02 | 4.41 | 435 | 579 |
| 225 | 11.80 | 4.72 | 465 | 620 |
| 250 | 13.07 | 5.23 | 515 | 687 |
| 275 | 14.34 | 5.74 | 566 | 754 |
| 300 | 15.61 | 6.24 | 616 | 821 |
| 325 | 16.88 | 6.75 | 666 | 888 |
| 350 | 18.15 | 7.26 | 716 | 954 |
| 375 | 19.42 | 7.77 | 766 | 1,021 |
| 400 | 20.69 | 8.28 | 816 | 1,088 |
| 450 | 23.24 | 9.29 | 916 | 1,222 |
| 500 | 25.78 | 10.31 | 1,017 | 1,355 |
To understand how these numbers came to, as well as to know how other proprtions of down-payment and home-loan work, refer to the sensitivity tables here: What should be your income to buy a luxury property in India?
Related Articles
- What should be your income to buy a luxury property in India?
- Should you sell your mutual funds to buy a house?
- How to buy luxury property in India from salary income?
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This post titled How Much CTC Do You Need to Buy a ₹1 Crore Home in India? first appeared on 27 Nov 2024 at https://arthgyaan.com
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