Saving for a Down Payment in India — Strategy, Where to Park the Money, and EPF Withdrawal

## The target number For a ₹80 lakh apartment: - 20% down payment: ₹16 lakh - Stamp duty + registration (6% in Maharashtra): ₹4.8 lakh - Interior fit-out (₹800/sq ft × 1,000 sq ft): ₹8 lakh - Brokerage (1%): ₹80,000 - **Total needed: ₹29.6 lakh** Most first-time buyers significantly underestimate the true cash requirement. ## Where to park down payment savings Down payment money has a fixed purpose and timeline — keep it safe: **0–2 years away:** FD, recurring deposit, liquid mutual fund **2–5 years away:** Short-term debt mutual fund, balanced advantage fund (low equity component) **5+ years away:** Can have some equity exposure (30–40%) Never put down payment savings in pure equity funds — a market crash 6 months before you want to buy could derail your plans. ## EPF withdrawal for down payment If you have 5+ years of EPF membership, you can withdraw up to 90% of EPF balance for property purchase. Process: 1. Submit Form 31 through employer or EPFO portal 2. EPFO verifies membership and balance 3. Amount credited in 15–20 working days Note: EPF withdrawal for property reduces your retirement corpus. Use it as a last resort if other savings are insufficient.