Introduction
We’re Rahul and Shruti — both working professionals in Chennai. I’m a software engineer in Sholinganallur, and Shruti is a tech lead in Guindy. For 3 years, we lived in a rented 2 BHK in Velachery, paying ₹30,000 per month.
With a combined monthly income of ₹2.2 lakh, we often wondered — is it time to stop renting and buy a home? By the end of 2024, we found our dream 3BHK flat worth ₹1.25 crore on OMR. The builder was reputed, the amenities were top-notch, and the location was perfect. We even got pre-approved for a ₹1 crore loan from HDFC Home Loan Interest at 9%.
Everything looked green… until we did a deep dive into the actual cost. What we found made us pause — and finally drop the plan.
Why We Dropped the 1Cr Home Loan Dream – (A Real Chennai Story)
Why We Wanted to Buy: Tired of Rent, Wanted Stability
- ₹30K/month rent = ₹3.6 lakh/year
- No tax benefits
- Property prices are increasing rapidly in OMR
- Parents and relatives pressuring us to “settle” with a permanent address
We thought, if we can pay ₹30K in rent, we can manage a home loan EMI too. Plus, we had ₹25 lakh saved through mutual funds and PF. That seemed enough to take the plunge.
The Property: A Modern 3BHK in OMR (₹1.25 Cr)
We were shown a well-planned 3BHK flat with:
- 1,480 sq.ft super built-up
- Covered parking
- Swimming pool, gym, children’s park
- Price: ₹1.25 Cr (inclusive of base price, floor rise, GST)
The builder also hinted at “special pricing” for early confirmation. Emotionally, we were sold. Logically, we thought we were ready. Until we crunched the numbers.
Loan & EMI Breakdown: ₹1 Cr Loan at 9% for 15 Years
HDFC Home Loan Interest Calculator
- Loan Amount: ₹1 Cr
- Tenure: 15 years
- Interest Rate: 9% (Floating)
- Monthly EMI: ₹1,01,427
- Total Payable to Bank (Principal + Interest): ₹1.82 Cr+
We were okay with the EMI — it would be tight, but possible with our dual income.
But that’s just the loan.
The Reality Check: Hidden & Add-On Costs
Here’s where the deal started to unravel:
| Cost Head | Amount (₹) |
| Down Payment (20%) | ₹25,00,000 |
| Registration Charges (9%) | ₹11,25,000 |
| Other Govt/Legal Charges (1%) | ₹1,25,000 |
| Loan Processing Fee (0.5%) | ₹50,000 |
| Mandatory Loan Insurance (2%) | ₹2,00,000 |
| Advance Maintenance & Clubhouse | ₹1,20,000 |
| TOTAL INITIAL COST | ₹41.2 Lakhs+ |
This meant we needed at least ₹40 lakh upfront, not ₹25 lakh. That’s 15 lakh more than we had — and it excluded future costs like:
- Annual maintenance (₹50K+)
- Property tax
- Repair reserves
- Floating interest rate risks
- Lifestyle sacrifices for 15 years
Emotional High vs Financial Logic
At this point, our hearts still wanted the flat. We had already imagined our furniture layout, Diwali parties, and even where our dog would sit. But numbers don’t lie.
We were about to lock ourselves into ₹1.82 Cr debt for a ₹1.25 Cr home — plus pay nearly ₹47 lakh just to get the keys.
Divya put it perfectly:
“We’d be house-rich but life-poor. One emergency, and our entire financial setup would collapse.”
Rent vs Buy Comparison: Our Final Table
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| Factor | Renting | Buying (Loan EMI) |
| Monthly Outflow | ₹30,000 | ₹1,01,427 |
| Yearly Outflow | ₹3.6 lakh | ₹12 lakh |
| Flexibility | High (can shift anytime) | Low (tied to EMI) |
| Upfront Payment | Minimal | ₹40 lakh+ |
| Asset Creation | None | Yes, but 15 years later |
| Maintenance Responsibility | Landlord | Us |
| Tax Benefits | None | Up to ₹3 lakh/year |
Click Here for Home Loan Interest Rates in India – May 2025
Final Decision: We Stepped Back
It was heartbreaking, but we dropped the plan.
Not because we couldn’t afford it, but because the timing wasn’t right. We wanted to build a better emergency fund, plan for our future child, and avoid being EMI slaves for 15 years.
We decided to continue renting for another 2–3 years, save more, explore more affordable options, and maybe consider a smaller 2BHK or a resale flat at a better price later.
What We Learned (The Hard Way):
- Registration + Other Charges = 10%+ — Always budget for more than what the builder quotes.
- Loan Insurance Isn’t Optional — Banks often make it look like a “choice,” but it’s usually mandatory.
- Processing Fees & Add-ons Add Up Fast
- Have a Backup Emergency Fund — After down payment and charges, don’t leave yourself broke.
- Homeownership is an Emotion + Finance Decision — Both must align.
Conclusion: No Regrets, Just Better Prepared
We felt embarrassed for a day or two — especially after telling friends and family that we were buying a flat. But now, a few months later, we feel relief. We avoided a financial decision that would’ve left us handcuffed for a decade or more.
We’re still living in our ₹35K rented flat — but we sleep better knowing that we’re financially safe, saving aggressively, and planning with our heads, not just our hearts.
When we do buy a home, we’ll be truly ready — and that makes all the difference.
