Home / Planning / Home Down Payment
Goal: your own home
The house is a big number. The down payment is the one you control.
Banks fund most of a home's price, but the down payment, stamp duty and registration come out of your own savings. We help you work out that figure, give it a date, and put each rupee in a fund category that suits how many years are left.
Count backwards from the day you get the keys
A house goal has a hard date. That date decides how much risk the money can take, so the plan changes as the date comes closer.
7 years or more out
Most of the SIP goes into equity fund categories (flexi cap, large cap index). There is time to ride out a bad year or two. Start with what you can spare, even ₹5,000 a month, and raise it every April.
5 to 7 years out
Fix the budget for the house now: price band, size, the area you want. Turn that into one rupee target and check every year if the SIP is on track. Equity share comes down to roughly half.
3 to 5 years out
Move gains already made into hybrid and short duration debt categories in steps, using an STP rather than one big switch. New SIPs go mostly to debt.
1 to 3 years out
Money that must be there on a fixed date should not sit in equity any more. Keep it in liquid, money market or short duration debt funds, or a bank FD if you prefer.
Final 6 months
Shortlist the property, keep the full down payment in a liquid fund that can be redeemed in a day or two, and keep your emergency fund separate. Never dip into it for the token amount.
Fund mix by years to goal
A starting point we adjust for your income, other goals and how you reacted the last time markets fell.
Equity share Debt and liquid share
| Years to purchase | Equity share | Fund categories we look at | Why |
|---|---|---|---|
| 8 years or more | 70% to 80% | Flexi cap, large cap index, some large and mid cap; rest in short duration debt | Enough time for equity to recover from a fall before you need the money |
| 5 to 7 years | 50% to 60% | Large cap index, flexi cap, balanced advantage (hybrid) | Growth still matters, but a crash in year 6 must not wreck the plan |
| 3 to 5 years | 30% to 40% | Conservative or balanced hybrid, short duration debt | Locking in gains while the target is close enough to see |
| 1 to 3 years | 0% to 10% | Short duration debt, money market, bank FD | The date is fixed; a 20% equity fall here cannot be waited out |
| Under 1 year | 0% | Liquid funds, savings account, sweep FD | You need the cash within days of signing the agreement |
Debt fund gains are taxed at your income slab; equity fund long-term gains above ₹1.25 lakh a year are taxed at 12.5%. Rules as of 2026, check current rules. Mutual fund investments are subject to market risks, read all scheme related documents carefully.
Step-up SIP: start smaller, finish on time
Same target, ₹20 lakh in 7 years, at an assumed rate for illustration of 10% a year. Your salary rises; your SIP can rise with it.
Option A: flat SIP
₹16,400 a month for 84 months
- Total you put in
- ₹13,77,600
- Estimated value at 7 years
- ₹20,00,000
Hard to begin with if your take-home today is ₹70,000 and rent is ₹18,000.
Option B: step-up SIP, +10% each year
₹12,600 a month in year 1
- Total you put in
- ₹14,34,480
- Estimated value at 7 years
- ₹20,05,407
Starts ₹3,800 a month lighter. You put in a little more overall, because more of it goes in later and has less time to grow.
| Year | Monthly SIP | Invested so far | Estimated value |
|---|---|---|---|
| 1 | ₹12,600 | ₹1,51,200 | ₹1,59,646 |
| 2 | ₹13,860 | ₹3,17,520 | ₹3,51,973 |
| 3 | ₹15,246 | ₹5,00,472 | ₹5,82,000 |
| 4 | ₹16,771 | ₹7,01,724 | ₹8,55,436 |
| 5 | ₹18,448 | ₹9,23,100 | ₹11,78,753 |
| 6 | ₹20,293 | ₹11,66,616 | ₹15,59,302 |
| 7 | ₹22,322 | ₹14,34,480 | ₹20,05,407 |
10% a year is an assumed rate for illustration, not a promise; real returns go up and down, and in this plan the mix shifts to debt in the last three years, which usually earns less. We rerun these numbers with you every year. Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future.
Try your own numbers in the step-up SIP calculator
Plan my down payment
Tell us the house. We send back the monthly number.
Share four details and we reply on WhatsApp with a target, a step-up SIP amount and the fund mix for your timeline. No charge for the first plan.
What goes wrong
Four ways a house fund slips
We see these in almost every first review of a house goal.
- Equity money a year before purchase. A 15% to 20% fall in the final year can push the purchase back by two or three years.
- Forgetting stamp duty and registration. On a ₹75 lakh flat that is roughly ₹4 to ₹5 lakh extra, and banks usually do not fund it.
- Using the emergency fund for the token. Then a job change or a hospital bill in the same year has nothing behind it.
- Stopping the SIP when markets fall. The cheap units bought in a bad year are what make the final number.
Questions people ask
Still unsure? Ask us on WhatsApp.
How much down payment do I really need?
Banks usually fund up to 75% to 90% of the property value depending on the amount, so plan for 10% to 25% of the price as your share, plus stamp duty, registration and shifting costs. Aiming for 20% plus costs keeps the monthly outflow after purchase lower. Rules as of 2026, check current rules.
I want to buy in 2 years. Should I use equity funds?
We would not. With two years left there is no time to recover from a fall. Short duration debt, money market funds or an FD suit this money better, even if the expected growth is lower.
Can I use my PPF or EPF for the down payment?
Both allow partial withdrawals for buying a house under certain conditions, but each withdrawal cuts your retirement money. We usually treat them as a last top-up, not the main source. Rules as of 2026, check current rules.
How does a step-up SIP work in practice?
You set a fixed yearly increase, say 10%, when you start the SIP, and the amount rises on its own each year. If you skip the auto increase, we remind you after your appraisal to raise it by hand.
What if property prices rise faster than my savings?
That is why we review the target every year, not just the SIP. If prices in your budget band move up, we raise the target and the SIP together, or adjust the timeline with you.
Related services and reading
Have a year in mind for your own home?
Mutual fund investments are subject to market risks, read all scheme related documents carefully. Past performance may or may not be sustained in future.