How does property inflation impact down payment goals?

Property price inflation (typically 5% to 8% p.a. in Indian metro cities) increases future house prices, meaning a 20% down payment goal grows larger every year you delay.

What is the best investment option to save for a home down payment?

For goals under 3 years, conservative fixed deposits or debt funds protect capital. For goals 3 to 7 years away, hybrid or equity mutual fund SIPs provide inflation-beating growth.

Does down payment include stamp duty and registration charges?

No, banks do not include stamp duty (4% to 7%) or registration fees (1%) in the home loan amount. Buyers must pay these expenses out of pocket alongside the down payment.

Can I use EPF or PPF balance for house down payment in India?

Yes, EPFO permits a partial withdrawal of up to 90% of EPF balance for buying or constructing a residential house after completing 5 years of service.

How is monthly SIP calculated for a down payment target?

Monthly SIP is calculated using the Future Value formula of annuity: SIP = Savings Gap × [ r / ((1 + r)^n - 1) ], where r is monthly investment return and n is months to goal.

What is RBI Loan-to-Value (LTV) ratio cap?

RBI mandates maximum LTV caps: 90% for loans up to Rs 30 Lakh, 80% for loans between Rs 30 Lakh and Rs 75 Lakh, and 75% for loans above Rs 75 Lakh.

Is paying a higher down payment better for home loan EMI?

Yes, paying a higher down payment reduces total loan principal, resulting in lower monthly EMIs and significantly lower total interest paid over 20 years.

How to calculate down payment for a 1 Crore house in India?

For a 1 Crore house with an 80% LTV bank loan, the 20% down payment is Rs 20 Lakh. Additionally, budget approx 6% (Rs 6 Lakh) for stamp duty and registration.

How does this down payment planner calculator work?

This calculator projects inflation-adjusted house price, total down payment required, net savings gap after existing savings, and exact monthly SIP needed.

Fermor is a financial platform for India. Every calculator is free to use, and a free account is available to save your results and access them later. Fermor is building an automated financial action system using the Account Aggregator framework to connect real accounts and close the gap between knowing what to do with your money and actually doing it.

Down Payment Planner Calculator: Save for House Purchase

What Is a Down Payment Planner?

A down payment planner computes the exact monthly SIP investment required to build the upfront cash deposit needed for buying a house in India, accounting for property price inflation and existing savings.

Buying a house is the largest financial transaction for most Indian families. While home loans cover up to 80% of the agreement value, buyers must fund 15% to 20% down payment plus stamp duty charges out of pocket.

This planner ensures your house buying timeline is backed by systematic monthly mutual fund or fixed deposit SIP accumulation, protecting your target against real estate price inflation.

RBI Loan-to-Value (LTV) Norms in India

The Reserve Bank of India (RBI) mandates upper limits on Loan-to-Value (LTV) ratios to regulate bank credit risk on housing loans.

RBI Loan-to-Value caps and minimum down payment requirements in India.
Home Loan Amount Category	Maximum LTV Cap	Minimum Down Payment %
Loans up to Rs 30 Lakh	90%	10% of Property Value
Loans between Rs 30 Lakh and Rs 75 Lakh	80%	20% of Property Value
Loans above Rs 75 Lakh	75%	25% of Property Value

How to Use This Down Payment Planner Calculator

Enter Current House Price: Set current agreement value of your target home.
Select Down Payment Share: Choose target down payment percentage (default 20%).
Set Existing Savings & Timeline: Input existing funds and purchase horizon in years.
Review Monthly SIP Required: View the monthly SIP amount needed to achieve your goal comfortably.

Are you a CA or financial advisor?

Generate branded home loan and Tax Optimization Reports for your clients.

Get started free

Frequently Asked Questions

Per RBI guidelines, banks finance up to 80% to 90% of a property's agreement value (LTV ratio), requiring buyers to pay at least 10% to 20% upfront as a down payment.

Disclaimer: Down payment savings estimates assume compound growth math. Mutual fund investments carry market risks. Bank home loan approvals depend on individual credit score, income verification, and RBI LTV guidelines.