How much should you earn to afford a home next year?

Buying a home in 2026 will depend on more than just rising prices — it will depend on whether your income can keep up. With banks now following strict loan-to-value rules and equated monthly incomes (EMIs) climbing with every small change in interest rates, many first-time buyers are trying to understand what salary they actually need before they start house-hunting. The answer is not always obvious, because the income required changes sharply as the home price moves from ₹30 lakh to ₹1 crore.

As mentioned above, the Reserve Bank of India (RBI) has clear rules for this. For a home priced up to ₹30 lakh, the bank can offer up to 90% of the price. For homes between ₹30 lakh and ₹75 lakh, the bank gives only up to 80%. For homes above ₹75 lakh, the bank provides a maximum of 75%. You must pay the remaining money as a down payment.

Once we know the real loan amount, we can calculate the EMI. Here, the EMI is based on a 20-year loan at an 8% interest rate. To stay safe, your EMI should not exceed 30% of your monthly income. This helps keep your budget comfortable. Here is a clear look at what you would need to earn to afford a home comfortably in 2026. The table below shows the home price, loan amount, down payment, EMI and the income you must earn to afford the EMI.

“In 2026, the real question isn’t ‘How much does a home cost?’—it’s ‘How financially prepared are you to own one?’ In a city like Mumbai, a buyer should ideally earn ₹30–35 lakh annually to stay comfortably within the 30–35% EMI-to-income band. At Sanghvi Realty, we’re seeing that today’s buyers are far more disciplined—they want well-designed, efficient homes where convenience, connectivity and long-term value justify the investment. Income levels are rising, aspirations are clearer, and families are planning ownership earlier in life. If you’re financially steady, 2026 is not a year to delay—it’s the year to enter the market with confidence,” said Shankesh Sanghvi, Managing Director, Sanghvi Realty

These trends show that homebuyers are becoming more careful about their long-term financial commitments. The overall shift towards planned and stable homeownership is likely to strengthen further in 2026.

“By next year, one's financial well-being will hinge less on one's income and more on their ability to manage their money wisely. A noticeable trend is emerging, individuals with good credit scores, a track record of saving, and a history of on-time payments are securing home loans, even if their incomes are modest," says Vinayak V Deousker, CBO of Easy Home Finance. "Digital underwriting and the use of alternative data are changing how people obtain housing finance, moving away from a system that just considers income. For many urban buyers, a basic annual income can also comfortably support homeownership, provided their financial profile is stable. Ultimately, in 2026, good financial behaviour will unlock affordability faster than higher salaries," he added.

This shows that experts agree that disciplined money habits will matter more than ever. For many buyers, steady planning today will shape stronger and more confident homeownership journeys tomorrow.