If you already own a flat and are eyeing a second one, then two questions need immediate attention. First, is there a cap on how many houses can I buy in India? Secondly, how much home loan can I afford in India? The answer to the first is there’s no limit on home ownership in India. However, the second question is about planning a property purchase the right way. It’s your budget, income, credit score, and an easy repayment of home loan. This Star Estate guide covers what a realistic home-buying budget looks like in 2026, how to get a home loan, and the loan-to-value ratio.
There are two scenarios: one is a regular resident, and the other is an NRI, i.e., a non-resident Indian. While there is no limit on home ownership in India, irrespective of the residency status of an Indian citizen, an NRI has to comply with FEMA rules. Indian Constitution doesn’t prohibit ownership under the Right to Property. But one has to obey the rules. Including taxation, FEMA, NRE and NRO banking channels. Star Estate's NRI property buying guidelines walk through these compliance steps in detail.
The next big thing. What makes your real estate portfolio in India taxable in 2026? Only a self-occupied residential property is exempt from taxation. Every additional residential property you own is taxable even if you don’t earn an income from it. These assets are labelled under the Income Tax Act's “deemed let-out” rule.
Things to know if you own multiple properties in India –
In India, rental income on let-out properties is taxable
Capital gains apply to the sale of property
Stamp Duty and Registration fee is levied on every real estate transaction in India. Reads in detail about state-wise stamp duty guide for exact rates.
These rules make homebuyers in India legally accountable. Thus, it is important to consult with your legal counsel to conduct due diligence.
There are two different home loan eligibility criteria for home loan borrowers in India. One caters to resident loan applicants and other to NRIs. For resident applicants, banks consider the following eligibility criteria, and the same is applicable to the co-applicant. The co-applicant can be a spouse, child, or an immediate sibling.
Applicant’s Age
Income
Current Loan sanctions
Credit Score
In case of NRIs (non-resident Indian) banks check for the following criteria –
Applicant’s Age
Income Overseas (1-3 years)
Current Loan sanctions
Credit History overseas
Permanent Residential Address
Present Residential Address overseas
LTV, i.e., loan-to-value, is the answer to your apprehension about how much of a home loan you can afford in 2026. It is the loan percentage against the property value you wish to buy. In India, banks usually sanction 80% of the home loan, and the buyer has to bear the remaining amount.
Formula to calculate LTV Ratio
LTV Ratio = Loan amount /Property value x 100
For example, the property value is ₹50 lakh, and the sanctioned loan amount is 80 percent. Then, the sanctioned loan amount is ₹40 lakh, while the remaining amount will be paid by you. This remaining amount is termed a down payment.
The loan amount depends upon the type of loan rate a borrower chooses.
Note – The Loan-to-value ratio depends upon property value. A high-value property will have a lower LTV.
Floating rate loans shifts according to loan lender's benchmark rate. It’s inexpensive when rate is low and becomes costlier when the rate increase.
Fixed-rate loans are steady for the entire duration, it doesn’t get affected by changes in rates until unforeseen circumstances arise.
It’s a combination of fixed and floating slabs, where the loan amount gets classified as per the terms and conditions.
As a homebuyer, it's obvious to be worried about home loan affordability in India in 2026. The home loan tenure is a maximum of up to 30 years, depending on your home loan eligibility. However, longer tenures lower monthly EMIs but attract higher total interest payable.
Understand this with an example.
A ₹10 lakh loan at 10.4% interest with 20 to 30 years lowers the monthly EMI to between Rs. 9,917 to Rs. 9,073. Try Star Estate's EMI Calculator to estimate your monthly EMIs.
Count on pre-approved home loan – Check with your banker to avail a pre-approved home loan, as it fastens the home-buying process. The amount available in the account makes price negotiation with the seller more worthy of desired property value.
Keep your documents ready – Update your income and address proof details along with income proof, as salaried and self-employed individuals. Also, have ITR filings for the last three years ready to attach to the home loan application.
Compare Home Loan Rate – Check your home loan affordability by assessing home loan rates from multiple lenders. Also, check the loan sanction percentage, Processing fees, and administrative charges. These are the deciding factors for home loan affordability in India in 2026.
Ensure NO Three EMI Bounce – Usually its ideal not experience any EMI bounce, but do not miss three EMIs consecutively. Under the SARFAESI Act, lenders can list you as a defaulter for the bounce of three consecutive EMIs. The decision can be taken without including court into the matter.
Maintain Your Investment Corpus – Agreed! A large amount is required to pay upfront when buying a property in India. Labelled as a down payment, it is likely to ask you to cut into your savings. However, you must not dilute the emergency corpus to fund a property purchase down payment. Remember the purpose of this corpus, as it can be your child’s education loan or family’s medical fund. Breaking something does have long-term repercussions, as such a fund take a lot of time to rebuild.
Therefore, ignore the investment fund when buying a property, as there is no sense in ruining this corpus to avail a loan liability.
Own Life Insurance – A home loan is a long-term financial obligation, and your world can turn around in two decades. Therefore, you must primarily have a safety net for yourself and your family. A loan is waived in case of loss of life, but you are irreplaceable at home. Therefore, budget for home buying in India only after owning life insurance in 2026. Star Estate's Buyer's Guide covers more pointers on planning your home-buying budget the right way.
Your Eligibility isn’t Your Budget – Banks calculate home loan eligibility in India based on your income, age and property value. It shows your home loan affordability in 2026; however, what it doesn’t tell is your repayment potential. Understand your EMI value by calculating your monthly household expenses, child’s education fees, investments, holiday patterns, and, of course, the chance of uncertainty. Consider EMI as the finishing line and life as a starting line to budget for homebuying in India.
While the repo rate has been steady since 2025 till now, home buying becomes easy in India. The stability in the repo rate by the Reserve Bank of India is reflected in lower home loan interest rates in 2026. Banks and loan lenders offer rates between 7–9% after assessing your home loan affordability in India.
However, Mumbai and Delhi remain expensive for buyers as the value of premium properties continues to grow rapidly. Affordability is here to stay, and first-time buyers are likely to experience it in these two metro cities in the next 12-24 months. See Star Estate's property price trends guide for city-wise figures.
The Indian Constitution doesn’t limit the number of homes you can own in India. Rather, EMI eligibility and home loan affordability play a deciding role when it comes to home ownership. Therefore, by having a top real estate consultant like Star Estate as an advisor, you can surely have one thing in your favour.
That is, RERA-verified property purchases anywhere in India. Banks and loan lenders prioritize loan applications attached to RERA-verified assets in India. Talk to a Star Estate advisor today for a free, no-obligation consultation on the best-performing residential markets for your budget. NRIs can also visit our NRI Investment section for dedicated guidance on investing from abroad.