Beyond the down payment itself, first-time buyers often underestimate the additional costs stacked on top: stamp duty and registration (varying by state, often 5-8% of property value), brokerage if applicable, home loan processing fees, and initial furnishing or moving costs — budgeting for these separately, not just the down payment, avoids an unpleasant surprise close to purchase.
If your home purchase is 5+ years away, a mix of equity mutual funds and safer instruments can work toward the down payment target, gradually shifting toward FDs, RDs, or debt funds as the purchase date approaches, similar to any other medium-term goal, to avoid market risk affecting money you'll need on a specific date.
It's also worth checking your eligibility for schemes like PMAY (Pradhan Mantri Awas Yojana) interest subsidies if applicable to your income category, and comparing pre-approved loan offers from a couple of lenders before finalising a property, since your negotiating position is generally stronger when you're not rushed by a specific deal's deadline.