Home Loan vs Rent in India 2026 — The Real Math

The 5% rule

If annual rent < 5% of property price, renting wins financially. Most metros are at 2–3% — buying is worse on pure math.

When buying still makes sense

• You'll stay 8+ years
• You have 20% down + 6-month EMI buffer
• Section 24 + 80C tax benefits cover ~₹3.5L deduction

EMI cap

EMI should be ≤40% of take-home. Most banks approve up to 60% — that's a trap.