The “ideal” loan-to-value (LTV) ratio depends on your risk comfort, but many financially cautious people aim for 70–80%, meaning you put down 20–30% as your own contribution. A lower LTV (more down payment) generally means smaller EMIs, less total interest, and more breathing room in your monthly budget.
Pushing LTV to the maximum allowed by the bank might get you into a bigger home today, but it also ties a big chunk of your future cash flow. If interest rates rise, income drops, or life throws a surprise, high EMIs become stressful quickly.
So instead of just asking, “What will the bank give me?”, ask, “What EMI amount can I handle comfortably while still saving for other goals?” Work backward from that. A slightly smaller home with manageable EMIs usually leads to a quieter mind than a dream house that keeps you awake at night.
