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  • Home Loan Affordability Calculator

    It is important to assess how much home loan you are eligible for before you start the application process. Understanding this will help you manage your finances and ensure that you are able to pay your EMIs on time without putting a strain on your budget.

    You can easily check your home loan affordability through free online home loan affordability calculators on the websites of leading and reputed banks. Most of these calculators have sliders or boxes for different factors that affect your home loan affordability. These categories may include age, down payment, gross monthly income, tenure, interest rate, other EMIs, etc.

    Here is an example:

    For a 30-year-old individual who has a net adjusted monthly income of Rs.50,000, with other EMIs of Rs.5,000, making a down payment of Rs.1 lakh, if the rate of interest is 8% p.a. and loan tenure is 30 years, the loan amount that is computed as affordable is Rs.9 lakh.

    The advantage of using home loan affordability calculators is that you can narrow down your search on properties that fit into your budget. You can also organise your finances better when you know how much down payment you will have to make and how much you will have to pay as Equated Monthly Instalments (EMIs).

    What affects home loan affordability?

    Home loan affordability is influenced by a variety of factors such as those given below:

    1. Age: A younger individual has a higher chance of getting a higher loan amount and being approved for a loan as he has more number of years ahead and his earning ability may increase with age. An older individual, on the other hand, may have lesser number of earning years ahead of him with his earning capacity reaching a plateau soon.
    2. Income: Your income is a crucial factor in your home loan affordability. Your take-home salary after deductions and tax will give you a better picture of how much you can comfortably repay.
    3. Income stability: An individual with a steady and stable income is more likely to get a loan than one with an irregular income.
    4. Expenses: Your monthly expenses will have to be taken into account before you decide how much loan you can afford to take.
    5. Existing EMIs: Existing loans and their EMIs are an important factor when calculating your home loan affordability. To increase it, you could consider closing existing loans so that you have more cash on hand to pay for a home loan.
    6. Credit score: A higher credit rating makes the loan approval process faster and easier and vice versa.
    7. Rejected loan applications: If you have had prior loan applications rejected, it will negatively impact your credit score.
    8. Collateral/security: Any collateral like land or gold that can be used as security will increase your chances of getting a loan and a higher amount as a secured loan is a lot less riskier than an unsecured one.


    1. Will my application be rejected if I have a low credit score?

      This will depend on the discretion of the bank, but it is safer to improve your credit score and then apply for the home loan.

    2. How much percentage of my total income can I safely earmark for home loan EMIs?

      It would be safe to put aside 45% to 50% of your total income exclusively for EMIs.

    3. How can I reduce my loan EMIs?

      The best way to reduce your EMIs is by prepaying the loan as much as possible whenever you get a lump-sum amount, such as through bonuses, inheritance, surplus funds, etc.


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