Home Loan Down Payment: How Much Should You Save?

Your down payment is the portion of the property's cost you pay upfront, funded outside the home loan - understanding how much you'll genuinely need to save avoids an unpleasant surprise late in the process.

The LTV-driven minimum

Since lenders finance only a percentage of the property's value (LTV, see our dedicated guide), the remainder is your minimum required down payment. For a property valued at ₹60 lakh with an 80% LTV offer, the minimum down payment would be ₹12 lakh.

Costs beyond the down payment itself

The down payment isn't the only upfront cost - registration charges, stamp duty (which varies by state), legal fees, and sometimes society transfer/maintenance deposits are typically not covered by the home loan and need to be funded separately, on top of the down payment.

Why saving more than the minimum can be worth it

A larger down payment (beyond the LTV minimum) reduces your loan amount, which reduces both your EMI and total interest paid over the tenure. It can also, in some cases, put you in a lower LTV band that some lenders may price more favourably, though this varies by lender.

Building a down payment savings plan

Since a home purchase is typically planned well in advance, it's worth setting a specific down payment target (including the non-loan costs above) and a timeline, rather than starting to save only once you've decided on a specific property - the latter often leads to either delayed purchases or under-saving for genuine total costs.

A common mistake to avoid

Underestimating registration, stamp duty, and other transaction costs - which can add up to a meaningful percentage of the property value depending on your state - is a frequent, avoidable source of last-minute financial strain during a home purchase. Research your specific state's charges early in your planning.