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A Guide to Buy your Dream House This Year

Updated: Jan 24, 2022
New Year Resolution Buying your Dream House in 2023

The year 2020 and 2021 has been a learning curve for everyone. It has shown us the true priorities of life and the importance of being financially stable. While everyone’s path to becoming financially stable is different, there is one thing common in everyone’s plan, i.e., owning a home.

Owning a home gives you a sense of accomplishment and makes you feel secure, which gives you the strength to face the world with confidence. If you still don’t own a house property, you shouldn't delay your plans to own one. This new year, make a resolution to buy new home in 2023.

Top 5 reasons why you should buy new home in 2023:

  • With rising costs of input materials, your dream house will cost more to buy
  • Living on rent is expensive in the long term and gives no return compared to owning a home
  • The value of your house will appreciate over the long term
  • Favourable government policies for first-time house buyers and attractive interest rates on home loan
  • Watch your loved ones grow in life at the comfort of your own house, where there are no restrictions

Buying a New Home - Checklist

If you are planning to buy new home, here are the things you should keep in mind before purchasing one.

1 Budget

A proper budget is very important when moving forward to buy a new home. If you are planning to take out a loan to buy new home, check how much percentage of your monthly income can be used for home loan EMIs after meeting all your financial obligations.

The idea is, your new home should be within your financial means and should not result in financial stress.

2 Location

Your new home should have access to good road connectivity and all basic amenities like water supply, electricity, etc. It’s better to buy a new home in a location which is projected to develop over the next 20 years and where the price is within your budget. Also, such properties have a high resale value.

3 Loan Eligibility

You should check the home loan eligibility and maximum loan you can avail of before applying for a home loan to finance the purchase. For instance, your home loan eligibility depends on your repayment capacity, credit score, down-payment as most lenders require you to make at least 10% as a down payment. (please note that this percentage could be higher depending on your eligibility and the lender’s policy)

You can use our free online home loan eligibility calculator to check the maximum amount you may be eligible to get as a home loan.

4 Stamp Duty and Registration Charges

You should not miss out on the stamp duty, registration fees, local body taxes while planning for the budget. Before zeroing on the house property, check out the market valuation of the property in the books of the local municipal body and the stamp duty charges.

5 Additional Fees and Commission

Look out for additional charges such as real-estate agent commission, monthly maintenance charges, charges and commission by the lender, lawyer, brokers, etc. If you are buying a pre-owned property, run a check on the property and verify, whether the property is clear from any legal hurdles, and has all the necessary paperwork. Lenders may reject applications for purchasing homes that are under arbitration, or have insufficient paperwork.

6 Tax Planning

Do you know, both interest component and principal component on home loan EMI qualifies for tax deductions under different sections of Income Tax Act. And, to get the maximum benefits of tax deductions on home loan, you need to plan your EMI amount as per your income and repayment capacity.

7 Essentials to Buy for New Home

After buying a new home, you may need to invest a little more to make the place liveable, like buying furniture, electrical equipment, kitchenware, security equipment (locks, CCTV) etc. If there is a frequent power outage in that area, you would need to put up a power backup system in place.

While budgeting, you need to consider all these expenses beforehand, so that you can plan accordingly.

How Home Loan help to Buy a Dream House?

Home loans play a huge role in helping an average Indian buy their dream house with ease. It serves as a powerful financial tool, enabling individuals to bridge the gap between their savings and the actual cost of the property. Moreover, home loans often come with tax benefits, providing an additional incentive for individuals to leverage this financial instrument. In essence, a home loan acts as a facilitator, turning homeownership dreams into a tangible reality by providing the necessary financial support and flexibility.

Home Loan Eligibility and Documentation

  • Assess Eligibility: Utilize online eligibility calculators to determine the loan amount based on income and credit score.
  • Income and Credit Score Impact: Higher income and credit scores result in a higher eligible loan amount.
  • Background Verification: Lenders verify information through employer background checks for accuracy.
  • Credit History Analysis: Your credit history and payment records are scrutinized to confirm repayment capability.
  • Comprehensive Assessment: The overall evaluation ensures a precise understanding of your eligibility and financial credibility for the home loan.

The basic home loan eligibility criteria at SMFG Grihashakti are:

  • Applicant must be a resident Indian
  • Age must be above 21 years and below 65 years at the time of application for a home loan
  • Salaried individuals should have a stable income source and must be employed in a reputed organisation with at least 1 year of work experience, and 6 months in the current organisation.
  • Applicant should have a CIBIL credit score of 700 and above
  • Applicants must meet the specified monthly minimum income criteria as per employment type and location.
  • Down payment for the property

For self-employed professionals, the minimum monthly income criteria depend on the nature of the job and industry.

  • PAN and KYC documents
  • Proof of income for salaried employees (salary slips, IT returns, Form 16)
  • Proof of income for self-employed (IT returns, CA audited business financials)
  • Bank statements of the past 6 months
  • Complete set of documents relating to the property you wish to purchase

Now, you know the drill, things to do before buying a new home. Therefore, start planning your next year and realize the dream of owning a new home in 2023.

Must Read : How to Achieve your Dream of Owning a House Using PMAY Subsidy Scheme


The dream of owning a home can be realized through careful planning, financial diligence, and utilizing the benefits of a home loan. It is essential to align the budget, location considerations, and loan eligibility. Addressing additional fees and taxes and focusing on tax planning contribute to a successful home-buying journey. Essential purchases post-acquisition should also be factored into the budget. By leveraging a home loan wisely, individuals can navigate the process of acquiring their dream home while ensuring financial stability and fulfilling a significant life goal. Check your eligibility and apply for a home loan now!


How do I plan to buy a dream house?

Planning to buy your dream house involves setting financial goals, creating a budget, saving for a down payment, and researching the real estate market. Developing a clear plan helps make the process smoother and more achievable.

Is it a good idea to buy a home on loan?

Buying a home on loan can be a good idea, as it allows you to fulfill your homeownership dream without paying the entire cost upfront. However, it's essential to assess your financial capacity, consider interest rates, and plan for repayment.

How to afford the home of your dreams?

Affording the home of your dreams involves budgeting, saving, and possibly taking a mortgage. Prioritize your needs, cut unnecessary expenses, and explore affordable financing options to make your dream home a reality.

How can I buy the house of my dreams?

To buy the house of your dreams, start by defining your preferences, setting a budget, and saving for a down payment. Seek assistance from a real estate agent, conduct thorough research, and explore financing options to facilitate the purchase.

At what age do most people buy their dream home?

The age at which people buy their dream home varies. While some may achieve this milestone in their 30s or 40s, others might do so later in life, depending on individual circumstances, financial stability, and personal goals.

What is the best age to buy a house in India?

The best age to buy a house in India depends on individual circumstances and financial readiness. Many people consider purchasing a home in their 30s or 40s, but there's no fixed age, and it varies based on personal preferences and life stages.

How long does it take to find your dream house?

The time it takes to find your dream house varies based on factors like location, market conditions, and personal preferences. It could range from a few weeks to several months, depending on the complexity of your criteria and the availability of suitable properties.

How do I plan to buy a house in 5 years?

Planning to buy a house in five years involves setting clear financial goals, creating a savings plan, and considering investment options. Develop a budget, cut unnecessary expenses, and explore ways to increase your income, aiming to accumulate the necessary funds for a down payment.

How do I choose my dream home?

Choosing your dream home involves considering factors like location, size, budget, and amenities. Define your priorities, work with a real estate professional, visit properties, and assess your needs and preferences to make an informed decision.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
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