Buying a Home Above Rs 1 Crore: 2026 Checklist

The moment your shortlist crosses Rs 1 crore

It usually happens quietly. You started looking at a Rs 85 lakh budget, widened the search radius or upgraded from a 2BHK to a 3BHK, and now every property on your shortlist reads "Rs 1.1 crore" or "Rs 1.3 crore." For a first-time buyer, crossing the Rs 1 crore mark can feel less like a happy upgrade and more like a jump into a different, higher-stakes game — bigger EMIs, bigger stamp duty, and a nagging worry that you might be missing a cost or a diligence step that only "shows up later."

That worry is well-founded, but manageable. Above Rs 1 crore, several things genuinely change: the TDS obligation (which actually starts at Rs 50 lakh, so it already applies), the loan-to-value ratio your lender will offer, the absolute rupee size of stamp duty, and — in many premium projects — the GST exposure if you're buying under construction. According to the IBEF Real Estate Industry in India report (Feb 2026), the luxury and premium segment has seen a real surge in recent years, which means more inventory and more competition for buyer attention at this budget — a good reason to slow down and be systematic rather than get swept along by a compressed booking window. This checklist gives you the calm, sequential version: what changes, what it costs, and in what order to do it.

What actually changes above Rs 1 crore

• TDS is already active. Section 194-IA's 1% TDS threshold kicks in at Rs 50 lakh, so every home above Rs 1 crore already requires you, the buyer, to deduct 1% TDS on the transaction value and file Form 26QB — this isn't new at this budget, but the absolute rupee amount (Rs 1 lakh+ on a Rs 1 crore home) is now large enough that getting the mechanics wrong is costly.
• Loan-to-value tightens. Many lenders cap LTV at roughly 75-80% for higher-ticket loans (compared to up to 90% on smaller loans), which means a proportionally larger down payment is expected from your own funds.
• Stamp duty becomes a serious line item. State stamp duty ranges — roughly 5-6% in Maharashtra, ~5% in Karnataka, 4-6% in Delhi — translate to Rs 4-6 lakh on a flat Rs 1 crore purchase, real money that needs to be budgeted separately from the down payment.
• GST exposure is material. 5% GST with no input tax credit applies to non-affordable under-construction homes; on a Rs 1.2 crore under-construction flat that's roughly Rs 6 lakh, while a ready-to-move home with an occupancy certificate is GST-exempt.
• Diligence stakes are higher. A mistake on a Rs 1 crore-plus purchase is proportionally more expensive to unwind, so title checks, RERA verification and builder-track-record research deserve more time, not less.

Where Rs 1 crore is "premium" vs "entry-level"

The framing matters for expectation-setting: Rs 1 crore buys different things in different cities.

Treat "Rs 1 crore" as a floor in Mumbai and NCR core, and as genuinely premium in Bengaluru, Hyderabad, Pune, Chennai and most tier-2 cities.

Step-by-step: pre-approval to handover

1. Clarify your budget band and must-haves privately first. Before you engage a broker or a builder sales team, use DrawMagic's Dream Home companion to talk through what actually matters to you — space, locality, amenities, resale liquidity — so you walk into conversations with a clear brief instead of being sold a brief.
2. Get pre-approved, not just pre-qualified. A formal in-principle sanction from 2-3 lenders tells you your real LTV and EMI capacity at this ticket size before you fall for a specific unit.
3. Model the EMI at multiple down-payment levels. Use the EMI calculator to see how a 25% versus 35% down payment changes your EMI and total interest on a Rs 1 crore-plus loan — the difference is often larger than buyers expect at this scale.
4. Shortlist against your brief. Filter for locality, RERA status and construction stage rather than starting from a builder's marketing pitch.
5. Do full diligence on your shortlist. Verify RERA registration on the state portal, review the title chain (for resale), and check the sanctioned building plan against what's being built. This is public-record research you or your lawyer do — DrawMagic surfaces facts, sources and as-of dates, but never scores or certifies a project.
6. Sign the agreement to sell. At this ticket size, have a property lawyer review payment schedule, possession-delay penalty clauses and the exact carpet-area definition before you sign.
7. Deduct TDS and file Form 26QB. Deduct 1% of the full sale consideration and deposit it within the prescribed window — confirm current rules with a chartered accountant, since thresholds and forms can be updated.
8. Pay stamp duty and register. Budget the full state-specific percentage in advance; this is not negotiable and must be paid before registration.
9. Take possession, verify handover documents, and complete mutation. Confirm the occupancy certificate exists before taking possession of an under-construction project.

The full cost stack on a Rs 1 crore home

On a Rs 1 crore under-construction purchase, total cash required beyond the loan can realistically approach Rs 37-40 lakh once GST, stamp duty, registration, TDS and a reasonable interiors budget are all included — worth stress-testing well before you make an offer.

Real-world scenario: a Bengaluru couple budgeting Rs 1.2 crore

A senior engineering manager and a product lead, combined monthly income Rs 3.8 lakh, decide to move up from their first flat to a Rs 1.2 crore 3BHK in Bengaluru's Sarjapur Road corridor. Using the EMI calculator, they compare a 25% down payment (Rs 30 lakh) against a 35% down payment (Rs 42 lakh) on a 15-year loan, and find the higher down payment cuts their total interest meaningfully while keeping their EMI-to-income ratio under 35%. Because the project is under construction, they budget an additional Rs 6 lakh for GST upfront — a number they'd initially missed until they ran the full cost stack — and adjust their savings timeline by two months to accommodate it rather than stretching their EMI.

Funding the premium purchase

• Down payment and LTV: At this ticket size, lenders scrutinise income documentation and existing liabilities more closely; keep your own-contribution proof (bank statements, fixed deposits, mutual fund statements) organised well in advance.
• Co-applicant strategy: Adding a spouse or parent as co-applicant can increase eligible loan amount and, in some states, unlock a stamp-duty concession if they're also a co-owner — check your state's IGR portal for the exact rule.
• Proof of own contribution: Lenders at this budget typically ask for a clear paper trail of how the down payment was funded — sudden large unexplained deposits can slow down loan processing.
• Prepayment plan: On a large floating-rate loan, even a modest annual prepayment (from a bonus or increment) meaningfully shortens tenure — model a few scenarios on the EMI calculator before you commit to a fixed monthly EMI ceiling.

Pro tips

1. Get quotes from at least three lenders — at this ticket size, even a 0.1-0.15% rate difference is a meaningful absolute saving over the loan term.
2. Ask for the exact occupancy-certificate status in writing before agreeing on a possession timeline.
3. Reserve a contingency of at least 5% of the property price beyond your planned budget, since premium projects often have negotiable "optional" upgrades that quietly add up.
4. Revisit your Dream Home brief after your first few site visits — most buyers refine what "premium" actually means to them once they see real inventory.
5. Keep every TDS deduction and Form 26QB acknowledgment on file — you'll need it as proof at resale.

Common mistakes to avoid

1. Anchoring on down payment alone and forgetting GST and stamp duty, which together can add 10%+ to the effective outlay on an under-construction purchase.
2. Skipping a lawyer's review of the agreement to sell because the builder is well known — reputation is not a substitute for reading the possession-delay penalty clause yourself.
3. Assuming LTV will match a smaller-loan experience — higher-ticket loans often come with tighter LTV caps, surprising buyers who budgeted a smaller down payment.
4. Rushing diligence because of a "limited units left" sales pitch. RERA registration checks and title review take the same amount of time regardless of budget size, and are more important, not less, at this ticket size.
5. Treating brokerage as fixed — it's frequently negotiable, particularly on resale deals.

How DrawMagic fits into this process

Buying above Rs 1 crore rewards patience and structure more than any other budget band, precisely because the absolute rupee cost of a missed step is highest here. Start with a private, unhurried conversation on DrawMagic's Dream Home companion to clarify what you actually want before anyone sells you what they have. Use the EMI calculator to pressure-test your funding plan at more than one down-payment level, and lean on the buyer hub for locality and affordability intelligence grounded in public records and dated sources — DrawMagic surfaces facts, not verdicts, so the diligence decision stays yours. When you're ready to organise your requirements, shortlist and documents in one place, sign up and keep the whole process — from brief to possession — tracked without losing pieces of it to scattered WhatsApp chats and PDF attachments.

Key takeaways

• Above Rs 1 crore, the TDS rule (already active since Rs 50 lakh) becomes a larger absolute number — deduct 1% and file Form 26QB, and confirm current rules with a CA.
• LTV caps often tighten at higher ticket sizes (roughly 75-80%), meaning a proportionally larger down payment is expected.
• State stamp duty (Maharashtra ~5-6%, Karnataka ~5%, Delhi 4-6%) translates to Rs 4-6 lakh on a Rs 1 crore home — budget it separately from the down payment.
• 5% GST applies to non-affordable under-construction homes; ready-to-move homes with an occupancy certificate are GST-exempt.
• Rs 1 crore is entry-level in Mumbai MMR and NCR core, but genuinely premium in Bengaluru, Pune, Chennai, Hyderabad and most tier-2 cities.
• Full cash requirement beyond the loan can approach Rs 37-40 lakh on a Rs 1 crore under-construction purchase once all costs are included.
• Plan your priorities privately on DrawMagic's Dream Home companion before engaging brokers or sales teams.
• Model funding scenarios on the EMI calculator before committing to a specific unit.
• DrawMagic is an information platform — verify RERA status, title and tax rules independently or with a licensed professional; it never certifies or scores a project.

FAQ

Is the 1% TDS calculated only on the amount above Rs 1 crore? No — the 1% TDS under Section 194-IA applies to the entire sale consideration once the property value crosses Rs 50 lakh, not just the amount above the threshold.

Do LTV caps really tighten above Rs 1 crore? Many lenders apply somewhat lower LTV limits on higher-ticket loans as part of their risk policy; exact caps vary by lender and applicant profile, so confirm with your bank during pre-approval.

Can adding a co-applicant reduce stamp duty? In several states, having a woman as a co-owner (not just co-applicant on the loan) can unlock a stamp-duty concession — check your specific state's IGR portal, since rules vary and change.