Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs

SUPPORT

Menu  
 
Apply Now
Apply Now

Tata Capital > Blog > How to Plan a Right Budget for New House in 2020?

Loan for Home

How to Plan a Right Budget for New House in 2020?

How to Plan a Right Budget for New House in 2020?

Let’s face it! Buying a home is a huge milestone, one which requires extensive planning. Before you finalise a property, draw up a budget for a new house keeping in mind –

Only after pouring over these factors must you go on to budget planning. Here are a few budgeting tips and tricks for purchasing a home in 2020.

Understand the rule of 25%

Always apply the 25% rule when purchasing a house to make sure your paycheque can afford the loan. Simply put, your EMI should not be above 25% of your gross monthly income. Additionally, you can use an EMI calculator for home loan to plan and monitor your financial situation.

Know expenditures apart from the EMI

We tend to forget the other expenses of owning a house along with the payable EMI until they run into a financial crunch. Set a budget keeping in mind that the eventual wearing away can pinch your finances through utilities, repairs, maintenance, etc. You need to add these expenses to the budget and check whether they suit your finances or not, according to your home loan rates.

Focus on the down payment and EMI share

Down payments decide the stature of your EMI, i.e. a high down payment means lower EMI. Do not go overboard trying to make a massive down payment. Gauge the state of your finances, and go ahead with a down payment you can afford. Also, remember that 30% to 40% of the net take-home pay is usually set as the EMI by lenders. Therefore, using an online home loan EMI calculator will optimally calculate your budget and allow you to gauge your eligibility.

Fix your intent behind purchase

If you intended on buying a house hoping for a good ROI, make sure you analyse your budget with a home loan calculator. Keep in mind the locality, prospects, topography as well as ongoing commerce of the house you want to buy. If you do not make a calculated move, you can end up with poor ROI and an unnecessary burden of a housing loan.

Additional Read: What are must haves when buying a new home in 2020?

Upgrade your lifestyle with Tata Capital’s loans

It is understandable if you choose an EMI plan which uses up a majority of your extra finances, but leave yourself some leverage. Opting for a truly affordable loan means you leave ample room for leading a decent lifestyle. Consider this factor in your budget for a home, or else you may overestimate your repayment ability.

The bottom line here is that everyone deserves to get their dream home but you have to be cautious about the budget and its relation to the home loan in 2020. Tata Capital believes that everyone must get a shot at affordable housing finance irrespective of their financial status.

Additional Read: Why is 2020 the Right Time to Buy a House

Reach out to us to know more about our home loan products and say goodbye to your financial uncertainties today!

Apply For Home Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
More About Loans
home loan calculating home loan housing loan rate of interest calculate home loan eligibility documents needed for housing loan quick cash loan housing loan top up home loan transfer home loan with overdraft facility home loan balance transfer calculator home loan disbursement process loan for home extension rgrhcl
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools