Short answer: Answer these questions before house hunting in Bengaluru: how much cash you have after stamp charges, what EMI you can carry at a higher rate, where you'll commute, ready or under-construction, and who decides. Your cash, not your salary, usually sets the ceiling. Write the answers down before your first site visit.
- Cash often binds first: stamp charges of about 7.6% and the down payment can't come from the loan.
- Stress-test the EMI: check it at your rate plus two points.
- Fix the map before the flat: commute, water, flood and metro status narrow the search fast.
- Ready vs under-construction is a money question: GST and rent while you wait add up.
- Our 5M brief: money, map, must-haves, move-in date, mandate.
- What should you know about money before you start?
- Where should you live?
- What kind of home do you need?
- When do you need to move?
- Who decides, and how?
- Worked examples
- The 5M brief: one page before your first visit (our framework)
- Before-you-search checklist
- Lawyer note
- Frequently asked questions
- Talk it through with acre&key
- Sources
Most buyers start with listings and work backwards. That's how you end up loving a flat you can't fund, or a commute you'll hate. These questions are about you, not the property. The property checks come later, in our 100 things to know before booking.
What should you know about money before you start?
- How much cash can you put in without touching your emergency fund?
- Have you set aside about 7.6% of the price for stamp duty and registration? It can't be financed on flats over ₹10 lakh.
- What down payment does your loan size need? RBI caps loan-to-value at 90%, 80% or 75% by loan size.
- What EMI can you carry comfortably, as a share of take-home pay? Bengaluru's average is about 35% on Knight Frank's index; see our affordability study.
- Could you still pay if your rate rose two percentage points?
- Do you have other EMIs that a lender will count?
- Is your credit record clean, and have you checked it?
| Loan amount | Maximum loan-to-value (RBI) |
|---|---|
| Up to ₹30 lakh | 90% |
| Above ₹30 lakh up to ₹75 lakh | 80% |
| Above ₹75 lakh | 75% |
Source: RBI Master Circular on Housing Finance. Lenders can lend less, never more. Our full cost guide lists every charge.
Where should you live?
- Where do you and your partner work, and how will that change in five years?
- What's the real peak-hour commute, door to door?
- Is the area on running metro, or only a planned line? See our metro status page.
- Does the area get Cauvery water, or depend on borewells and tankers? Our Cauvery Stage 5 coverage guide helps.
- Is the area known for flooding? Our flood-prone areas guide explains what the official data shows.
- Is it inside the GBA or in a panchayat, which changes records and charges? Use our ward and corporation lookup.
What kind of home do you need?
- How many bedrooms do you need now, and in five years?
- Flat, villa, row house or plot?
- Which three features are non-negotiable, and which are nice-to-have?
- Do you need parking for one car or two?
- Will you work from home, and do you need a quiet room?
When do you need to move?
- Do you need to move in within a year?
- Can you pay rent and an EMI at the same time if the project is late?
- Would you buy resale, which needs a different set of checks?
Who decides, and how?
- Who has the final say, and who else needs to see the flat?
- Will the property be in one name or joint? See our joint home loan page.
- Who will check the title? Our legal checks guide shows what a lawyer reviews.
- What would make you walk away from a flat you like?
Worked examples
These use the approved 8.5% illustrative rate and a 20-year loan.
Worked example 1: salary says one thing, cash says another
A couple take home ₹2,00,000 a month and want the EMI at 35%, which is ₹70,000. They have ₹25 lakh in savings to spend.
| Step | Working | Result |
|---|---|---|
| Loan the EMI supports | ₹70,000 ÷ ₹867.82 per lakh | about ₹80.66 lakh |
| Price at 75% loan-to-value | ₹80.66 lakh ÷ 0.75 | about ₹1.08 crore |
| Cash needed (25% down + 7.6% charges) | ₹1.08 crore × 0.326 | about ₹35.06 lakh |
| Cash available | ₹25 lakh |
The cash falls short by about ₹10 lakh. So work back from cash instead. With a loan under ₹75 lakh, they can borrow 80%, so cash needed is 20% plus 7.6%, or 27.6% of the price:
| Step | Working | Result |
|---|---|---|
| Price their cash supports | ₹25 lakh ÷ 0.276 | about ₹90.58 lakh |
| Loan at 80% | about ₹72.46 lakh | |
| Charges at 7.6% | about ₹6.88 lakh |
Their real ceiling is about ₹90 lakh, not ₹1.08 crore. That's question 1 and question 3 working together.
Worked example 2: ready vs under-construction at ₹90 lakh
| Cost | Ready flat | Under-construction, 3 years to possession |
|---|---|---|
| GST at 5% | Nil (paid in full after completion) | ₹4,50,000 |
| Rent while you wait, ₹35,000 a month | Nil | ₹12,60,000 |
| Extra cost | ₹17,10,000 |
So the under-construction flat needs to be about ₹17 lakh cheaper just to break even, before any delay risk. GST is nil only if you pay the entire price after the completion certificate. Check the rule in our full cost guide, and see what OC and CC mean.
The 5M brief: one page before your first visit (our framework)
| M | What you write down | From questions |
|---|---|---|
| Money | Cash available, price ceiling, EMI at rate + 2% | 1 to 7 |
| Map | Two or three areas, with commute, water and flood notes | 8 to 13 |
| Must-haves | Three non-negotiables, bedrooms, parking | 14 to 18 |
| Move-in date | Latest date you can wait, and rent you can carry | 19 to 21 |
| Mandate | Who decides, whose name, who checks title, walk-away rules | 22 to 25 |
Hand the brief to anyone helping you search. It stops the search drifting.
Before-you-search checklist
- [ ] Total your usable cash, minus an emergency fund.
- [ ] Work out your price ceiling from cash and from EMI, and use the lower one.
- [ ] Get a loan eligibility estimate from your bank.
- [ ] Shortlist two or three areas.
- [ ] Decide ready or under-construction.
- [ ] Agree who decides and whose name goes on the deed.
- [ ] Fill in the 5M brief.
Lawyer note
Ownership structure, title checks and agreement terms are legal questions. Ask a property lawyer before you pay any booking amount.
Frequently asked questions
Work out your cash, EMI limit and price ceiling, pick two or three areas, decide ready or under-construction, and agree who decides. Then start visiting.
The down payment (10% to 25% depending on loan size) plus about 7.6% for stamp duty and registration. Neither can come from the loan on flats over ₹10 lakh.
Calculate a price from your EMI limit and another from your cash. Use the lower one. For many buyers, cash is the tighter limit.
Many buyers aim for about a third of take-home pay. Test it at your rate plus two points. Lenders rarely go beyond half of income.
Compare the full cost. An under-construction flat adds 5% GST and rent while you wait. It needs to be cheaper enough to cover both, plus delay risk.
Two or three. More than that spreads your visits thin. Narrow by commute, water supply and flood history before looking at flats.
It depends on who's paying and borrowing. Joint ownership can help with loan eligibility. Ask a lawyer about your situation.
Before you pay a booking amount. A lawyer should check title, approvals and the agreement. Line one up before you start visiting.
Sources
Checked 19 Oct 2026.
- RBI, Master Circular on Housing Finance (loan-to-value caps; stamp duty and registration excluded from cost on homes over ₹10 lakh): https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=12824
- Karnataka Stamp Act 1957, official consolidated copy: https://dpal.karnataka.gov.in/storage/pdf-files/34%20of%201957%28E%29.pdf
- IGR Karnataka, Table of Registration Fees: https://igr.karnataka.gov.in/storage/pdf-files/RegistrationFee.pdf
- GST Council, FAQ on real estate (5% and 1% rates; no GST where full consideration is paid after the completion certificate): https://www.gstcouncil.gov.in/sites/default/files/2024-02/faq-real-estate-sector.pdf
- Fortune India, Knight Frank Affordability Index H1 2026, 3 Jul 2026 (news): https://www.fortuneindia.com/real-estate/ahmedabad-tops-home-affordability-chart-at-23-as-6-of-8-cities-stay-within-affordability-threshold-in-h1-2026-knight-frank-india/146369
