Full explanation
The affordability rules: (1) Home price: 3–5x annual gross income. 5x is the stretch limit. (2) EMI: should not exceed 40% of monthly income (including all other EMIs). (3) Down payment: minimum 20% of property value (10% down exists but adds PMI/mortgage insurance cost). Example: ₹15 lakh/year income → max home price ₹60–75 lakh → down payment ₹15 lakh (20%) → loan ₹50–60 lakh → EMI ~₹43,000–50,000. At 40% EMI cap, monthly income must be ₹1.07 lakh+. Home affordability also depends on job stability, other financial goals, and local rental alternatives.