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.
This article explores how your CTC translates to in-hand salary, maximum loan eligibility, and the right down payment for your dream house.
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
There are two schools of thought on this topic:
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.
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.
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:
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 |
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 |
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?
This article discusses how to plan early retirement in the face of lifestyle inflation and lack of health insurance for an investor in their 40s.
Published: 8 December 2024
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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