What goes into the cost of a flat
- Price (agreement value): the base price plus floor rise, preferred location charges and parking, as written in the agreement.
- GST: 5% on an under-construction flat (1% for affordable housing). None once the occupancy certificate is issued.
- Stamp duty and registration: paid to the state when the agreement is registered. Rates differ by state.
- Other charges: club membership, maintenance deposit, legal fees, society formation, as your builder's cost sheet lists them. Club membership and maintenance usually carry 18% GST: enter them with it.
- The loan: banks lend at most 90% of the price up to ₹30 lakh, 80% up to ₹75 lakh and 75% above (RBI rule), and don't usually fund GST, stamp duty or registration. The rest is your own money.
Questions
How is the EMI worked out?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly interest rate (the yearly rate ÷ 12 ÷ 100) and n the number of monthly instalments. It assumes a fixed rate for the whole loan.
Is there GST on a flat?
GST applies to flats bought while they are under construction: 5% in general and 1% for affordable housing, with no input tax credit. A flat bought after the occupancy certificate is issued has no GST. Confirm with your builder.
How much is stamp duty?
It depends on the state, and sometimes the city and the buyer: most states charge around 5 to 7% of the property value, several charge less when a woman buys, and registration is usually around 1%, capped in some states. Check your state's current rates and enter them here.
Can the home loan cover stamp duty and GST?
Banks generally lend a share of the property's value, often 75 to 90% depending on the amount, and expect stamp duty and registration to be paid by the buyer. That is why the cash you need up front is shown separately.
An estimate to plan with, not financial advice. Your bank's sanction letter and your builder's cost sheet have the final figures.
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