First-Time Home Buyer Guide ā India 2026
Buying your first home in India involves more than finding the right flat. CIBIL score, RERA verification, TDS obligations, stamp duty, and tax benefits all need to be navigated correctly. Here's the complete 10-step process ā with all the 2026 numbers you need.
10-step home buying process ā India 2026
Home Buying Steps ā India 2026
| Step | Action | Tools needed |
|---|---|---|
| 1 ā Budget | Set max EMI at 40ā45% of take-home pay. Calculate max loan amount. | EMI Calculator + Eligibility Calculator |
| 2 ā CIBIL | Check your CIBIL score (750+ for best rates). Improve if needed. | Free at cibil.com / BankBazaar |
| 3 ā Down payment | Save 30ā40% of property value (down payment + stamp duty + reg) | Savings plan ā 6ā18 months |
| 4 ā RERA check | Verify project on state RERA portal before signing anything | State RERA portal |
| 5 ā Home loan pre-approval | Get in-principle approval from 2+ banks. Compare rates. | Loan Comparison Calculator |
| 6 ā Agreement to sale | Sign agreement, pay 10ā20% booking + part payments on demand | Lawyer review mandatory |
| 7 ā TDS deduction | Deduct 1% TDS if buying above ā¹50L. File Form 26QB. | TDS Calculator |
| 8 ā Registration | Pay stamp duty + registration fee. Property legally yours. | Stamp Duty Calculator |
| 9 ā Loan disbursal | Bank disburses loan on registration / possession | Linked to bank process |
| 10 ā Possession + snag list | Inspect thoroughly. Report defects ā builder must fix within RERA warranty (5 years) | RERA complaint if needed |
All upfront costs ā what to budget beyond the flat price
Upfront Home Buying Costs ā India 2026
| Cost item | Amount | Notes |
|---|---|---|
| Down payment | 20ā35% of property value | Depends on LTV and property value |
| Stamp duty | 3ā9% of property value | Varies by state and buyer gender |
| Registration fee | 0.5ā2% of property value | Capped in many states |
| TDS (if >ā¹50L) | 1% of sale price | File Form 26QB within 30 days |
| Home loan processing fee | 0.25ā1% of loan amount | One-time, usually paid at application |
| Legal/lawyer fees | ā¹10,000āā¹50,000 | Title verification + agreement drafting |
| Interior/moving costs | ā¹3Lāā¹20L+ | Depends on finish level and distance |
Rule of thumb for first-time buyers
EMI ā¤ 40% of take-home salary ā higher leaves you cash-strapped for 20 years.
CIBIL 750+ before applying ā a 6-month wait to improve score saves ā¹5āā¹10L in interest over the loan life.
Budget 35ā40% of flat price for everything else ā stamp duty, registration, TDS, interior design, and moving costs are routinely underestimated.
RERA check before booking amount ā booking amount is typically non-refundable. Verify RERA registration and possession date before paying.
Frequently asked questions
What CIBIL score is needed to get a home loan in India in 2026?
A CIBIL score of 750 or above gets you the best interest rates (7.10ā7.50%) from all major banks. Scores between 700ā749 may result in 0.25ā0.50% higher rates or require more documentation. Scores below 700 limit options to NBFCs and HFCs at higher rates (9ā12%). Scores below 650 make home loan approval very difficult. Check your score free at CIBIL.com or CreditMantri. If your score is low, spend 6ā12 months improving it: pay all existing EMIs on time, reduce credit card utilization below 30%, and avoid applying for multiple loans.
How much down payment do I need to buy a home in India?
Down payment requirements in India 2026: For properties up to ā¹30 lakh: minimum 20% down (80% LTV). For ā¹30Lāā¹75L: minimum 25% down (75% LTV). For above ā¹75L: minimum 35% down (65% LTV). Additionally, budget for: Stamp duty + registration: 4ā9% of property value (varies by state and gender of buyer). TDS (if buying above ā¹50L from resident seller): 1% of property value. Total amount needed at registration: down payment + stamp duty + registration + TDS + shifting costs = typically 30ā40% of property value.
How do I check if a property is RERA registered in India?
Every state has an online RERA portal. To verify: (1) Note the builder's RERA registration number from their brochure or site (mandatory to display). (2) Go to your state's RERA portal (e.g., maharera.mahaonline.gov.in for Maharashtra, rera.karnataka.gov.in for Karnataka). (3) Search by project name, registration number, or builder name. (4) Verify: registration is active (not expired), possession date on RERA matches what builder told you, complaints filed (if any), approved floor plans match what you're being shown.
What tax benefits are available for first-time home buyers in India?
Tax benefits for home buyers in India (2026): Section 80C: Deduction up to ā¹1.5L/year on principal repayment of home loan (for self-occupied property). Section 24(b): Deduction up to ā¹2L/year on home loan interest (for self-occupied). For let-out property, entire interest is deductible. Section 80EEA (if applicable): Additional ā¹1.5L deduction on interest for affordable housing (stamp duty value ā¤ ā¹45L, first home, loan sanctioned 2019ā2022). All deductions are under the old tax regime. If you've opted for the new tax regime, none of these apply ā choose the regime that gives lower tax after comparing.
Calculators for first-time buyers