Know Your limit

The standard is 48 times your gross salary. Most nationalised banks offer only 85 per cent of the cost of the property. But there are banks that will offer you up to 100 per cent of the loan amount, provided you can show them that you have the capacity to repay.

But remember there is stamp duty, registration and other charges that will work out to around 10 per cent of the cost of the property. Take that into your calculations.

Compare home loans

Once you have selected the bank you want to do business with, sit down with its officials and get a pre-approval for the loan before committing on the property.

Banks will only disburse the loan after you have paid stamp duty and registration, and your share of the money.

Do not pour all your savings on the loan. Keep a buffer amount in the bank for emergencies. Remember you are committing for the long term a significant amount of your earnings to repaying the loan.

There is no harm in going for a longer tenure. If you get a pay hike or a bonus, you can always pre-pay your loan. This will bring down your tenure drastically.