Medium term goal
Dream home planning.
Usually three to seven years out, which rules out an all-equity approach. The loan will cover most of the price; the plan is for the part it will not.
Who this is for
If you plan to buy within the next three to seven years.
Banks lend 75% to 90% of a home’s value depending on the size of the loan, and stamp duty and registration are not financed. That leaves a down payment plus several per cent in charges to come from your own savings — usually on a date the seller or builder sets.
That money has a short horizon and a hard deadline. It belongs in a mix weighted toward debt, with only as much equity as the timeline can absorb.
“Save for the down payment. Let the loan handle the rest, at an EMI you can carry through a bad year.”
The cash you need on the day
A ₹60 lakh home today.
The price rises at an assumed 5% a year. Upfront cash is a 20% down payment plus about 7% for stamp duty, registration and other charges.
Monthly SIP for the upfront cash on a ₹60 lakh home
Start early, pay less each month
- Buying in 7 years₹18,700/mo
- Buying in 5 years₹28,000/mo
- Buying in 3 years₹46,000/mo
2.5×more each month if you save for 3 years instead of 7
| Buying | Price then | Upfront cash needed | Assumed return | Monthly SIP needed |
|---|---|---|---|---|
| In 3 years | ₹69.5 lakh | ₹18.8 lakh | 8% | ₹46,000 |
| In 5 years | ₹76.6 lakh | ₹20.7 lakh | 8% | ₹28,000 |
| In 7 years | ₹84.4 lakh | ₹22.8 lakh | 10% | ₹18,700 |
Illustrative projections. Stamp duty, registration and charges vary by state and property; 7% is an assumption. Loan eligibility depends on the lender. The assumed return reflects a debt-weighted portfolio for shorter horizons. Monthly SIP, compounded monthly. Actual returns vary and may be negative in any period. Figures rounded. Not a guarantee, and not a recommendation of any specific scheme.
How we work
Four steps, then a review every year.
- 1
Fix the budget from the EMI backwards
What you can repay comfortably sets the loan; the loan plus your savings sets the price you can pay.
- 2
Add every upfront cost
Down payment, stamp duty, registration, legal fees, interiors and moving. Interiors alone are routinely underestimated.
- 3
Save in a debt-weighted mix
Short horizons get mostly debt and conservative hybrid funds; longer ones can carry some equity, reduced as the date nears.
- 4
Keep the emergency fund separate
Buying a home should not empty the account that covers a job loss or a hospital bill.
Questions we get
Before you start.
Should I redeem long-term investments for the down payment?
Bigger down payment, or invest the difference?
Can a loan against my mutual funds help?
Other goals
Planning for more than one thing?
Retirement
Your longest goal. Most people start ten years late.
Plan this goal Long termChild’s education
A fixed date you cannot move.
Plan this goal Long termChild’s marriage
A long horizon with a flexible date.
Plan this goal Medium termTax saving
ELSS chosen on merit, not on the March deadline.
Plan this goal Short termEmergency fund
Six months of expenses, ready the same day.
Plan this goal Short termYearly expenses
Fees, premiums and festivals that come every year.
Plan this goal Short termDream vacation
A short horizon, so keep it safe.
Plan this goal Medium termSelf development
Courses or a career change, planned on purpose.
Plan this goalPlan your dream home with us.
A free 30-minute call. We look at what you already have and work out what the goal really needs.
We never hold your money. Payments go straight to the fund house.
Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Projections are illustrations at an assumed rate, not guaranteed returns.