Down payment
The part of a home's price you pay yourself, because the bank won't lend all of it.
A down payment is the part of a home’s price you pay from your own money. RBI limits how much of a home’s value a bank can lend, through the loan-to-value cap, so you fund the rest. Stamp duty and registration come on top. See rent vs buy a home for a worked example.
Questions people ask
How much down payment do I need for a home loan?
RBI caps a bank's home loan at 90% of the home's value for loans up to 30 lakh rupees, 80% above 30 lakh up to 75 lakh, and 75% above 75 lakh. Your down payment is at least the rest: 10%, 20% or 25%.
Is stamp duty part of the down payment?
No. Stamp duty and registration are extra costs on top of the down payment. RBI's rules say banks shouldn't include them in the home's value when working out the loan, except for homes costing up to 10 lakh rupees.
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