Short answer: As a first-time home buyer in Bengaluru, plan on paying about a third of the price from your own savings: the down payment, about 7.6% in stamp duty and registration (less on first-sale flats up to ₹45 lakh), GST on under-construction flats, and extras. Banks lend 75% to 90%. Check RERA, title and e-Khata before any token.
- Karnataka has no stamp duty discount for first-time buyers. The lower 2% and 3% rates are for the first sale of a flat up to ₹45 lakh, which isn't the same thing.
- RBI caps loans at 90% up to ₹30 lakh, 80% from ₹30 to ₹75 lakh, 75% above, and banks can't lend you the stamp duty or registration on a flat above ₹10 lakh.
- PMAY-U 2.0 gives up to ₹1.80 lakh interest subsidy if household income is up to ₹9 lakh, the loan up to ₹25 lakh and the home up to ₹35 lakh.
- Home loan tax breaks on a self-occupied flat work only in the old tax regime.
- Work out three numbers before your first site visit: cash-to-keys, stress-tested EMI and the cost of waiting.
- How much money do you really need to buy your first flat in Bengaluru?
- Is there a stamp duty concession for first-time home buyers in Karnataka?
- How much home loan can a first-time buyer get in Bengaluru?
- What government help is there for first-time home buyers?
- What tax benefits do first-time home buyers get in 2026?
- Should a first-time buyer pick ready-to-move or under-construction?
- Three numbers to know before your first site visit
- What should a first-time buyer check before paying a token?
- What does the buying process look like, start to finish?
- What mistakes do first-time buyers in Bengaluru make?
- What to do if...
- First-time buyer checklist
- Frequently asked questions
- Talk it through with acre&key
- Sources
Buying your first flat in Bengaluru usually goes wrong in one of two ways. You fall for a flat before you know what you can afford, or you get the money right and skip the paperwork. This guide is about getting both right, in order, with real rupees. For the full process from shortlist to keys, we've written a separate step-by-step guide to buying a flat in Bengaluru. This page is the first-timer's layer on top of it: what's different when you've never done this before.
How much money do you really need to buy your first flat in Bengaluru?
More than the down payment. Your cash covers four things:
- The part of the price the bank won't lend. At least 10%, 20% or 25%, depending on the loan size.
- Stamp duty and registration. 7.6% of market value for a resale flat or a new flat above ₹45 lakh; 5.36% or 4.24% for a first-sale flat up to ₹45 lakh. Banks can't fund these on a flat above ₹10 lakh (RBI Master Circular on Housing Finance).
- GST if you buy under construction: 5%, or 1% for affordable housing (GST Council FAQ).
- Extras and loan costs. Car park, club, corpus, maintenance advance, connections, 0.5% mortgage stamp duty on the loan, and lender fees.
Our pillar on the total cost of a flat in Bengaluru has every rate, its legal source and the traps. Here's how it lands for a first-timer.
Worked example 1: an ₹80 lakh under-construction flat
Illustrative only, not a project price. A new flat above ₹45 lakh in the Greater Bengaluru Area, bought from the builder before completion, with the largest loan RBI allows.
| Line | Amount | Basis |
|---|---|---|
| Loan (80%, as the loan is ₹30–75 lakh) | ₹64,00,000 | RBI LTV cap |
| Down payment | ₹16,00,000 | Price minus loan |
| Stamp duty, cess, surcharge and registration (7.6%) | ₹6,08,000 | Karnataka Stamp Act; IGR fee table |
| GST at 5% | ₹4,00,000 | GST Council FAQ |
| Mortgage stamp duty, 0.5% of loan | ₹32,000 | Stamp Act Art. 6 |
| Cash before extras and lender fees | ₹26,40,000 | 33% of the price |
| TDS, 1% (₹80,000) | Not extra | Deducted from the price you pay the builder |
So "20% down" on this flat is really 33% from your own pocket, before parking, club, corpus and moving. That gap surprises nearly every first-time buyer we meet.
Is there a stamp duty concession for first-time home buyers in Karnataka?
No. We found no concession for first-time buyers in the Karnataka Stamp Act or on the IGR site as of 18 Oct 2026.
What exists is a lower rate for the first sale of a flat: 2% up to ₹20 lakh and 3% above ₹20 lakh up to ₹45 lakh (Art. 20(2A), Karnataka Stamp Act). It depends on the flat, not on you. A first-time buyer picking up a ₹40 lakh resale flat pays 5%. Someone on their fourth home buying a new ₹40 lakh flat from the builder pays 3%.
We also found no notified women-buyer concession on official sources. If someone promises one, ask to see the notification.
How much home loan can a first-time buyer get in Bengaluru?
Two limits apply, and the lower one wins.
The property limit. RBI caps the loan-to-value ratio (RBI Master Circular, 1 Apr 2025):
| Loan amount | Maximum LTV |
|---|---|
| Up to ₹30 lakh | 90% |
| Above ₹30 lakh up to ₹75 lakh | 80% |
| Above ₹75 lakh | 75% |
The income limit. Each lender sets how much of your income can go to EMIs. There's no single RBI number for this, so ask two or three lenders for an in-principle sanction before you shortlist. It tells you your real ceiling, and you'll know the lender's paperwork before you're under time pressure.
How much EMI can you afford?
Here's the test we use with first-time buyers. Work out the EMI at today's rate, then again at 2 percentage points higher. If the higher EMI would hurt but not break you, you're fine. Floating rates move, and your first five years carry the most interest.
On the ₹64 lakh loan above, over 20 years:
| Interest rate (illustrative) | Monthly EMI |
|---|---|
| 8.5% | ₹55,541 |
| 10.5% (stress test) | ₹63,896 |
These rates are assumptions for the maths, not a lender's quote. Plug in your own on our home loan EMI calculator, and check your overall budget on the home affordability calculator.
What government help is there for first-time home buyers?
PMAY-U 2.0 interest subsidy
The Pradhan Mantri Awas Yojana (Urban) 2.0 Interest Subsidy Scheme is the main one. You may qualify if all of these hold (PMAY-U 2.0 operational guidelines; PMAY ISS FAQ):
- Household income up to ₹9 lakh a year (EWS up to ₹3 lakh, LIG ₹3–6 lakh, MIG ₹6–9 lakh)
- No pucca house owned anywhere in India, and no housing scheme benefit in the last 20 years
- Home loan up to ₹25 lakh, house value up to ₹35 lakh, carpet area up to 120 sq m
- Loan sanctioned and disbursed on or after 1 Sep 2024, with a tenure of more than five years
The subsidy is 4% a year on the first ₹8 lakh of the loan, for up to 12 years, capped at ₹1.80 lakh and credited through your lender in five yearly instalments. If two family members borrow on the same flat, they count as one household. A balance transfer to another lender ends your claim.
The honest catch for Bengaluru: a ₹35 lakh house value limit rules out most flats inside the city. It's worth checking if you're buying on the edges or a smaller first-sale flat.
Worked example 2: a ₹34 lakh first-sale flat with PMAY
Illustrative only. A new 55 sq m carpet flat, market value ₹34 lakh, household income ₹8 lakh, loan ₹25 lakh.
| Line | Amount | Basis |
|---|---|---|
| Stamp duty 3% + cess + surcharge + 2% registration (5.36%) | ₹1,82,240 | Art. 20(2A); IGR fee table |
| GST at 1% (affordable: up to 60 sq m and ₹45 lakh) | ₹34,000 | GST Council FAQ |
| Down payment (₹34 lakh minus ₹25 lakh loan) | ₹9,00,000 | Loan within the 90% cap |
| Mortgage stamp duty, 0.5% of loan | ₹12,500 | Stamp Act Art. 6 |
| Cash before extras | ₹11,28,740 | 33% of the price |
| PMAY-U 2.0 subsidy | Up to ₹1,80,000 | Credited through your lender over five years |
| TDS | Not required | Below ₹50 lakh, if guidance value is too |
Two things to notice. The cash share is still about a third, because the buyer chose a ₹25 lakh loan to stay within PMAY limits. And the subsidy arrives after you buy, so it eases the loan, not your cash-to-keys.
What tax benefits do first-time home buyers get in 2026?
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 (PIB), and the home loan sections were renumbered. According to tax-firm summaries of the new Act (we couldn't open the official section mapping), the position for a flat you live in is:
| Benefit | Old section (1961 Act) | New section (2025 Act) | Limit | Old regime | New regime |
|---|---|---|---|---|---|
| Interest on home loan, self-occupied | 24(b) | 22 | ₹2,00,000 a year | Yes | No |
| Principal repayment, stamp duty and registration | 80C | 123 (Schedule XV) | ₹1,50,000 shared with PF, insurance and the like | Yes | No |
| Extra interest for first-time buyers | 80EEA | 131 | ₹1,50,000 | Only loans sanctioned up to 31 Mar 2022 | No |
The rule that the new regime doesn't allow interest on a self-occupied home comes straight from the tax department's own regime FAQ for the old Act (Income Tax Dept FAQ).
What this means for you: the old 80EEA first-time-buyer bonus is closed to new loans. And if you've moved to the new regime, a home loan on the flat you live in saves you no tax at all. Run both regimes with your CA before you decide the loan size based on "tax savings".
Tax points are general information. Confirm with your CA.
Should a first-time buyer pick ready-to-move or under-construction?
There's no single right answer, but there is a right way to compare. Don't compare prices. Compare what each option costs you in money that buys you nothing while you wait.
Worked example 3: the cost of waiting
Illustrative. Both flats cost ₹80 lakh, with a ₹64 lakh loan at an assumed 8.5% over 20 years. You pay ₹30,000 a month in rent until you move. The under-construction flat is due in 24 months, and by then, on average, about half the loan (₹32 lakh) has been disbursed, on which you pay pre-EMI interest.
| Over 24 months | Ready flat (entire price paid after completion certificate) | Under-construction flat |
|---|---|---|
| Rent | ₹0 | ₹7,20,000 |
| Interest paid | ₹10,66,968 (full EMI from month 1) | ₹5,44,000 (pre-EMI) |
| GST | ₹0 | ₹4,00,000 |
| Loan principal repaid | ₹2,66,008 | ₹0 |
| Money spent that builds no equity | ₹10,66,968 | ₹16,64,000 |
In this example, the under-construction flat needs to be about ₹6 lakh cheaper just to break even, and that's if it's delivered on time. Every month of delay adds another month of rent and pre-EMI. If your numbers differ, run them on our ready-to-move vs under-construction calculator.
Under construction can still be right for you: if you're not in a rush, if you're living with family and paying no rent, or if the price gap is wide. Just check the RERA-registered completion date, not the brochure date, and know your rights if it slips. Under Section 18 of the RERA Act you can either withdraw with a refund and interest or stay and claim interest for the delay; our guide to delayed possession: refund vs interest explains both.
One GST trap: "ready" only means GST-free if the entire price is paid after the completion certificate or first occupation, whichever is earlier (CGST Act, Schedule II para 5(b)).
Three numbers to know before your first site visit
This is the framework we use with every first-time buyer, and it fits on a sticky note.
- Cash-to-keys. Down payment + stamp duty and registration + GST (if any) + extras + mortgage stamp duty. For most Bengaluru flats it's about a third of the price before extras.
- Stress-tested EMI. Your EMI at today's rate plus 2 percentage points. If it would break your monthly budget, the flat is too big for now.
- Cost of waiting. For an under-construction flat: months to the RERA completion date × (rent + pre-EMI) + GST. That's the discount the flat has to offer over a ready one.
If you know these three before you walk into a sales office, you're negotiating. If you don't, you're being sold to.
What should a first-time buyer check before paying a token?
The paperwork protects you more than any discount. In short:
- RERA. The project's registration, its completion date and the carpet areas on the Karnataka RERA portal. Our guide on how to check any project on RERA Karnataka walks through it.
- Title and approvals. A property lawyer's review of the title, encumbrance certificate, approved plan, and for a ready flat, the occupancy certificate. See Bengaluru property legal checks, from title to OC.
- e-Khata. Registration in Karnataka has needed e-Khata since 30 Sep 2024, as the Revenue Minister announced at the time (The Hindu). No e-Khata, no registration.
- The area. Flood history, water source and commute. Start with our Bengaluru flood-prone areas map.
- The money rule. A builder can't take more than 10% of the cost as an advance before a written agreement for sale is registered (RERA Act s.13(1); MoHUA RERA FAQ).
The full list is in our checklist before paying the token or booking amount.
Legal points are general information. Confirm with a property lawyer before you pay, sign or register.
What does the buying process look like, start to finish?
Here's the map. Each step is covered in detail in our step-by-step buying guide.
| Stage | What you do | First-timer tip |
|---|---|---|
| 1. Budget | Work out the three numbers | Get an in-principle loan sanction first |
| 2. Area | Commute, water, flood, schools | Visit at rush hour and after rain |
| 3. Shortlist | Compare on carpet area, not super built-up | Carpet area is the RERA term for usable floor area (s.2(k)) |
| 4. Verify | RERA, title, approvals, e-Khata | Hire your own lawyer, not the builder's |
| 5. Cost sheet | Every line in writing | Check 2% registration, not 1% |
| 6. Token | Pay only after checks | Stay within the 10% RERA cap before the agreement |
| 7. Agreement | Read, stamp and register | 0.5% duty, adjusted later against the sale deed |
| 8. Loan | Final sanction and disbursement | Read the insurance and prepayment terms |
| 9. Registration | Kaveri 2.0 slot, then the sub-registrar office | Carry originals and ID; both parties attend |
| 10. After | Khata transfer, utilities, property tax | Keep every receipt for tax and resale |
What mistakes do first-time buyers in Bengaluru make?
- Budgeting the down payment and forgetting the rest. Stamp duty, registration and GST alone add roughly 4% to 12.6% of the price to your cash need.
- Assuming "first-time buyer" gets a stamp duty discount. It doesn't in Karnataka.
- Choosing the new tax regime and then sizing the loan for tax savings. There are none on a self-occupied flat under it.
- Comparing super built-up prices. Two flats at the same rate can differ a lot in carpet area.
- Paying a token on the first visit. Nothing good is lost by taking a week to verify.
- Trusting the brochure completion date. Use the date on the RERA portal.
- Letting the bank's legal check stand in for yours. It protects the lender, not you.
- Forgetting TDS. At ₹50 lakh or more, you must deduct 1% and file Form 141 within 30 days from the end of the month (Section 393).
What to do if...
...your loan sanction comes in lower than expected? Don't plug the gap with a personal loan or credit card. Look at a smaller flat, add a co-borrower whose income the lender counts, or wait and save.
...you change jobs between booking and registration? Tell your lender early. Many lenders recheck income before final disbursement, and a probation period can delay it.
...the builder asks for more than 10% before the agreement? Don't pay it. It breaches RERA s.13(1). Ask for the agreement to be registered first.
...the flat you like has no e-Khata yet? You can't register without it. Ask when it will be issued and make your payments conditional on it.
...you're buying with a parent or spouse? Decide ownership shares before the agreement. Tax benefits generally follow who owns and who repays; confirm with your CA.
...you qualify for PMAY but the lender hasn't mentioned it? Ask whether they're a registered lending institution under PMAY-U 2.0 and apply through the scheme's portal.
First-time buyer checklist
- [ ] In-principle loan sanction from at least two lenders
- [ ] Cash-to-keys number, including 7.6% or the first-sale rate, GST and extras
- [ ] EMI stress-tested at +2 percentage points
- [ ] Cost of waiting worked out for any under-construction flat
- [ ] PMAY-U 2.0 eligibility checked (income, loan, value, carpet area)
- [ ] Old vs new tax regime compared with your CA
- [ ] Project and completion date checked on RERA Karnataka
- [ ] Lawyer's title report, encumbrance certificate, approved plan, OC for ready flats
- [ ] e-Khata available for the property
- [ ] Line-item cost sheet in writing, with 2% registration
- [ ] Token within 10% until the agreement for sale is registered
- [ ] TDS plan if the price or guidance value is ₹50 lakh or more
Frequently asked questions
The RBI minimum is 10% for loans up to ₹30 lakh, 20% for ₹30–75 lakh and 25% above. But you also pay stamp duty and registration from your own money, plus GST on under-construction flats. In practice, plan on about a third of the price in cash before extras.
No. We found no first-time buyer concession in the Karnataka Stamp Act or on the IGR site as of 18 Oct 2026. The 2% and 3% rates apply to the first sale of a flat up to ₹45 lakh, whoever buys it. A resale flat pays 5% even for a first-time buyer.
Not for a flat costing more than ₹10 lakh. RBI's Master Circular on Housing Finance tells banks not to include stamp duty, registration and documentation charges in the cost they finance. You pay these from your savings, along with the down payment.
You may be if household income is up to ₹9 lakh, you own no pucca house, the loan is up to ₹25 lakh, the house value up to ₹35 lakh and the carpet area up to 120 sq m. The subsidy is 4% on the first ₹8 lakh, capped at ₹1.80 lakh, for loans disbursed from 1 Sep 2024.
In the old tax regime, up to ₹2 lakh a year on interest for a self-occupied flat and up to ₹1.5 lakh on principal, stamp duty and registration within the shared limit. In the new regime, neither applies to a self-occupied flat. The old first-time-buyer 80EEA benefit is closed to new loans. Confirm with your CA.
Compare the cost of waiting, not just prices. In our ₹80 lakh example, an under-construction flat cost about ₹6 lakh more over two years in rent, pre-EMI interest and GST than a ready flat at the same price. It needs to be cheaper by at least that much, and delivered on time.
Lenders set their own limit on the share of income that can go to EMIs; there's no single RBI figure. A practical test is to work out the EMI at today's rate plus 2 percentage points. If that higher EMI would break your monthly budget, look at a smaller loan.
Check the project's RERA registration and completion date, get a lawyer's report on title, encumbrance and approvals, confirm the property has an e-Khata, and get a line-item cost sheet in writing. Don't pay more than 10% of the cost before the agreement for sale is registered.
CA note: Tax, TDS, GST and PMAY points on this page are general information, not tax advice. Confirm with your CA for your situation.
Lawyer note: RERA, title, e-Khata, agreement and registration points are general information, not legal advice. Confirm with a property lawyer before you pay, sign or register.
Sources
Checked 18–19 Oct 2026 unless marked.
- RBI Master Circular on Housing Finance, 1 Apr 2025 (LTV caps; stamp duty exclusion): https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=12824
- Karnataka Stamp Act 1957, official DPAL copy (Art. 6, 20, s.3B): https://dpal.karnataka.gov.in/storage/pdf-files/34%20of%201957%28E%29.pdf
- Karnataka Stamp (Amendment) Act, Act 4 of 2024 (agreement and mortgage duty): https://dpal.karnataka.gov.in/storage/pdf-files/04of2024Stamp(E).pdf
- Greater Bengaluru Governance Act 2024, s.170 (surcharge): https://dpal.karnataka.gov.in/uploads/media_to_upload1750663489.pdf
- IGR Karnataka, Table of Registration Fees (2% from 31 Aug 2025): https://igr.karnataka.gov.in/storage/pdf-files/RegistrationFee.pdf
- GST Council, FAQ on real estate (1% and 5%; affordable definition): https://www.gstcouncil.gov.in/sites/default/files/2024-02/faq-real-estate-sector.pdf
- CGST Act 2017, Schedule II, CBIC: https://taxinformation.cbic.gov.in/content/html/tax_repository/gst/acts/2017_CGST_act/active/chapter21/scheduleii_v1.00.html
- PMAY-U 2.0 Operational Guidelines (ISS, para 5.4): https://pmay-urban.gov.in/uploads/guidelines/Operational-Guidelines-of-PMAY-U-2.pdf
- PMAY-U 2.0 ISS FAQ: https://pmaymis.gov.in/PMAYMIS2_2024/PmayFAQ.aspx
- PIB, Income-tax Act 2025 in force from 1 Apr 2026: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2248005&lang=1®=3
- Income Tax Department, Section 393 (TDS on property): https://www.incometaxindia.gov.in/w/section-393-6
- Income Tax Department, FAQs on new vs old regime (self-occupied interest not allowed in new regime): https://www.incometax.gov.in/iec/foportal/sites/default/files/2024-07/New%20vs.%20Old%20Regime%20FAQs%20approved%20final.pdf
- RSM India, "Decoding the Income Tax Act, 2025" (s.22 mapping; secondary): https://www.rsm.global/india/sites/default/files/media/publications/2025/RSM%20India%20Publication%20-%20Decoding%20the%20Income%20Tax%20Act%2C%202025%20-%20Key%20Changes%20at%20a%20Glance_1_0.pdf
- MoHUA, RERA FAQ (s.13 advance cap): https://www.mohua.gov.in/static/uploads/2025/12/542144159b61c980253a694f478d3a5d.pdf
- The Hindu, e-Khata mandatory from 30 Sep 2024 (news, ministerial statement): https://www.thehindu.com/news/cities/bangalore/e-khata-is-mandatory-from-september-30-krishna-byre-gowda/article68691510.ece
