Decoding Your Home Loan
A home loan is often the biggest financial commitment you'll make. Before you apply, assess your eligibility. Lenders look at your income, age, credit score, and existing debts. A credit score of 750 or higher is generally preferred and helps secure better
interest rates. Banks typically fund up to 80-90% of the property's value for homes costing over ₹30 lakh. This means you need to arrange the remaining 10-20% as a down payment, in addition to other costs. Look beyond the interest rate. Check for hidden costs like processing fees (usually 0.25% to 1% of the loan amount), legal verification charges, and insurance premiums. Have your documents ready to speed up the process: proof of identity and address, salary slips for the last three to six months, bank statements, and recent Income Tax Returns.
Understanding Society Maintenance Charges
Once you move in, monthly maintenance charges become a recurring expense. These charges cover the upkeep of common areas and facilities like security, cleaning, lift operations, water supply, and garbage disposal. In Mumbai, maintenance can be a significant cost, ranging from ₹2 to ₹25 per square foot, depending on the society's age and the amenities offered, such as a gym or pool. For example, a basic society might charge ₹2.5-₹4.5 per sq. ft., while a luxury building could charge ₹15-₹30 per sq. ft. Before buying, ask how the maintenance is calculated. The most common methods are a flat rate for all apartments or a charge based on the flat's square footage. You should also inquire about the society's financial health, including its sinking fund—a mandatory reserve for major structural repairs—and repair fund.
The Non-Negotiable: Stamp Duty and Registration
Stamp duty and registration charges are mandatory government taxes that legalize your property ownership. In Mumbai, as of September 2026, the stamp duty is 6% of the property value for male buyers and 5% for female buyers. These rates include a 1% Metro Cess used to fund transport infrastructure. This one-percent concession for women can lead to significant savings. For example, on a ₹1 crore flat, a female buyer would save ₹1 lakh in stamp duty compared to a male buyer. On top of stamp duty, there is a registration fee. This is 1% of the property value for properties costing less than ₹30 lakh. For properties valued above ₹30 lakh, the registration fee is a fixed ₹30,000. Both stamp duty and registration are calculated on the higher of the property's sale price or the government's ready reckoner rate.
Key Questions for Due Diligence
Before finalizing your purchase, get clear answers on these key points. For home loans, ask the lender for a complete breakdown of all associated charges, not just the EMI. For maintenance, request the society's audited financial statements and the minutes of the last Annual General Meeting. This will reveal any ongoing disputes or financial issues. Ask the seller for a No-Dues Certificate from the society to ensure there are no outstanding maintenance payments you could inherit. Finally, when it comes to stamp duty, verify that the calculation is based on the correct property value and that you are availing of any applicable concessions, such as the one for women buyers.
