Who does not like to live in a home that one could call his/her own? Yes, we all want that to happen at least once in a lifetime. However, when it comes to having one’s own dream home, there is a difference between the dream and reality.
Yes, although a majority of people love to dream about having one’s own home, only a few are actually able to fulfill their wishes. It is because only a few have the financial capacity to buy a home with their own savings and income.
However, people not having the financial capacity need not sacrifice their wish of having a House Loan as they can avail a Housing Loan from a lender and do that.
Modern-day lenders have come out with online housing loans with a higher Housing Loan amount of up to Rs.5 crore at the lowest housing loan interest rates and wider tenors.
Although a Home Loan can give you a higher amount, what matters is the amount that you can finally avail as per your monthly income.
The Home Loan amount that your monthly income can give you
When it comes to availing the amount as the Home Loan, the concept is simple and basic to understand. The higher your income is, the higher will be your permissible House Loan amount.
- Monthly Income
Usually, the total Home Loan amount that one can grab is between 20-30 times or more than what your monthly income is. How much you will actually get differs from lender to lender.
Another factor that’s considered by lenders while calculating your Home Loan eligibility is your age, existing EMIs and other obligations in life.
If you are young and have more workable years left, you can get a higher loan amount along with a wider tenor as compared to a person left only with 3-5 years of service.
- Existing EMIs
Lenders also determine the exact percentage of the EMIs that’s coughing a portion of your monthly income. If you think your existing EMIs are eating about 20% of your total income, you will be sanctioned a lower Home Loan amount.
On the other hand, if someone is not serving any EMI or don’t have any obligation that demands money, you can know that you will get a larger amount as the Home Loan.
Home Loan Eligibility Calculator Can Help You
If you want to know your exact Home Loan eligibility even before applying for the Housing Loan application, you can use an eligibility calculator for a home loan to know about it.
It is an online tool that’s available at a leading lender’s website. You need to enter your desired Home Loan amount, date of birth, and the city of residence, monthly salary, other monthly income, existing EMIs/obligation, and the desired tenor on it.
Once you enter these details, the calculator gives you an exact amount that the lender can lend.
The Bottom Line
You can consider the discussed aspects to help you determine how much you can avail as the Home Loan on monthly income. Once you are ready with your exact loan amount, you can easily apply for housing online and get speedy approval.
You may also read: Understanding the Tax Benefits on Home Loan Properly