It's common for most people to dream of owning their own home. If you're planning to buy a home worth ₹1 crore and are considering a loan, it's crucial to have a reasonable monthly income.

Know these important things before taking a home loan.

1 Crore Home Loan EMI Calculation: It's common for most people to dream of owning their own home. Everyone desires a home. However, rising property prices have made this difficult for ordinary people. Property prices are skyrocketing in both major cities and smaller towns. Homes costing up to ₹1 crore (approximately $10 million) are now commonplace. Due to this high inflation, many people are opting to purchase a home directly from a bank.

If you're planning to buy a home worth around ₹1 crore and are considering taking out a loan, it's crucial to have a reasonable monthly income. Improper planning can lead to increased EMI burdens later.

In such a situation, it becomes important to know what your monthly salary should be to buy such an expensive house, and you should also know your financial situation... 

How much upfront investment is required when buying a home?

If you're planning to buy a home worth ₹1 crore through a loan, you'll have to make a significant upfront payment. Banks typically only offer home loans up to 80% of a property's value.

In this case, you will need to pay the remaining 20%, or approximately ₹20 lakh, as a down payment. After this, you can get a loan of approximately ₹80 lakh. Additionally, the house registration, stamp duty, and other legal procedures can cost you an additional ₹5 to ₹7 lakh.

How much EMI will have to be paid every month

When taking a home loan, it's important to consider the interest rate. Interest rates vary from bank to bank and can vary depending on the customer. Generally, home loan interest rates start around 7%.

In such a situation, if a person takes a loan of Rs 80 lakh for 30 years at 8 percent interest, then he will have to pay an EMI of about Rs 58,701 every month. 

How much should the salary be according to this

Experts say that your EMI amount should not exceed 30 percent of your monthly income. This means that to buy a home worth ₹1 crore, you'll need to earn around ₹2 lakh in salary. Only then will you be able to cover your EMI payments and other expenses.