New Delhi, Oct. 11 -- Buying a Rs.1 crore house involves more than arranging the down payment and securing a home loan. Buyers also need to ensure that the monthly equated monthly instalment (EMI) does not eat into their household budget, emergency savings and long-term financial goals. While a lender may approve a substantial loan based on a borrower's income and credit profile, that does not necessarily mean the borrower can comfortably afford the repayment.

For a buyer making a 20% down payment of Rs.20 lakh, the remaining Rs.80 lakh would need to be financed through a home loan. At an illustrative interest rate of 8% a year over 20 years, the EMI would be approximately Rs.66,900 a month. To manage this repayment without putting other...