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Tips to Plan Early on to Buy Your Dream Home with a Home Loan

Clix October 4, 2021


While planning to buy a house with a home loan, you must be thinking about creating a budget. You will find many home loan providers offering home loans at competitive interest rates. After all, a home loan is a long-term commitment, and its EMIs will consume a large part of your monthly income for years. Therefore, it is crucial to plan early on to so that you can gain control in your life over your finances. The ultimate goal is to pay your EMIs on time and still enjoy your life at its best.

With better control over your money, you feel confident about handling life’s issues easily. However, budgeting is not that easy, and you need expert organisational skills to plan your finances the way you want. The following tips will help you plan early on and create a budget to buy your dream home with a home loan


Gather All Details

Planning for a home purchase does not necessarily need to be complex. Start with gathering details of all your bills and other financial obligations, including your net income and expenses. Create a spreadsheet enlisting all your bills, expenses, and due dates. Also, create a section for your hobbies and entertainment, since you cannot ignore that completely.

Assess Your Income

Calculate your net income by deducting all your taxes, insurance, provident fund, and others. The amount left is your net income. Do not forget to include money you receive from your investment and residual income. Subtract your expenses from your income and re-assess the amount left. If it is too less or negative, you need to adjust your budget and reduce your expenses. You may increase your income by taking up a part-time job, selling items you don’t need, renting out an extra property, or finding a roommate.

Make Categories and Prioritise

After figuring out your income and expenses, prioritise your bills according to your needs. Eliminate unnecessary expenses, especially those spent on entertainment and hobbies. After making your home loan application, you will need to prioritise your expenses to make repayments more manageable. You can enjoy your life later after repaying the loan, but missing EMIs can be detrimental to your financial health.

When you have limited income and need to budget to buy your dream home with a home loan, check out where you are spending your money and where you can save it. When you take a home loan, you may need to make some sacrifices for a while.

Reduce Your Debt-to-Income Ratio

If your finances allow, try to pay off some of your debt to reduce your DTI ratio. The money you spend on paying off your debt can be saved later by availing a lower home loan interest rate. Home loan providers offer better loan terms and conditions to borrowers with a low DTI ratio. By reducing your DTI ratio, you can avail a higher loan amount at a lower interest rate. So, paying off your existing debt would be worth it.

Stick to Your Budget

Planning and creating a budget is not sufficient, as you need to stick to it too. The best trick to reduce your expenses is to leave your debit card and credit card at home and move around with limited cash in your pocket. Whenever you go out shopping, make a list of what you want and do not look elsewhere. Stick to the list you created and avoid impulse shopping.

Set Realistic Goals

Before filling out your home loan application form, remember that it is a long-term commitment for several years. For instance, when you apply for a home loan from Clix Capital, you can choose a loan tenure of up to 25 years. You cannot live without any enjoyment and hobbies for such a long time. So, while creating a budget, keep some room for occasional entertainment, shopping, and dine-outs too. Setting realistic goals will let you pay your EMIs on time without compromising your life’s quality. However, the key is to control splurging.

Keep a Look Out on Sales

If an expense is coming in a few months, start looking for sales and grab the opportunity whenever it is available. For instance, if your kids want new school bags for the new session, don’t wait for the new session to start. Instead, look for good deals during the off-season and buy them for the new session.

Do Not Waste Money

Find out ways to save money around the house. If you run your washing machine everyday, even when it is partially empty, wash your clothes every other day to run your machine on full load. Some common ways are avoiding food wastage, saving water and electricity, and allowing natural light to enter through windows. These little savings may add up to thousands of rupees a year.


If you are looking to plan early on and create a budget to buy your dream home with a home loan, these tips will help a lot. Planning early can help you stay in control, know where you are spending money each month, and manage your finances. It can also help in paying off your debt faster and saving money quicker. Over time, planning can eliminate impulse buying and make you a responsible money manager in life. You get a better hold of your money and live within your means.


Are you looking for a home loan to buy your dream house? Clix Capital can be your best source of finance. We offer home loans of up to ₹ 2 Crore with a flexible repayment tenure of up to 25 years. If you want a loan with the lowest home loan interest rate, create a plan, reduce your DTI ratio, and get in touch with Clix Capital to get the best loan offer. Use the tips mentioned above to plan early on and create a budget to make your loan repayment as easy as pie.

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