Affordability Calculator

As a rough guide, most lenders sanction 55 to 65 times your net monthly income, though this varies with your age, existing obligations, credit score and employer category. A ₹1 lakh monthly take-home with no existing EMIs typically supports a loan of ₹60–70 lakh over twenty years at prevailing rates. This calculator computes the figure precisely using the same FOIR and LTV rules a lender applies, rather than a multiple.

The Fixed Obligation to Income Ratio is the share of your net monthly income that a bank permits to go towards all EMIs combined — the new home loan plus every existing loan and credit card instalment. Indian lenders typically allow 40% at lower incomes rising to around 55% at higher incomes. It matters because it is usually the binding constraint on how much you can borrow, which means clearing an existing loan often raises your eligibility more than a salary increase would.

The loan-to-value ratio caps what a bank may lend against a property under RBI norms. For properties up to ₹30 lakh the cap is 90%, from ₹30–75 lakh it is 80%, and above ₹75 lakh it is 75%. So a ₹1 crore property requires at least ₹25 lakh as down payment, plus roughly ₹8 lakh in stamp duty and registration — around ₹33 lakh of your own funds before you have bought a single light fitting.

A CIBIL score above 750 will secure the best available rates. Between 700 and 750 you will generally be approved but may pay 0.25–0.50% more. Below 700 approval becomes difficult and pricing worsens materially. Check your report at least three months before applying. Errors are common, and correcting one takes weeks. Paying down credit card balances below 30% of the limit is the fastest legitimate way to improve a score.

Yes, and it is usually worth doing. Adding a co-applicant pools both incomes for the FOIR calculation and can lift eligibility very substantially. There is a second benefit that is often overlooked: on a joint loan where both parties are co-owners and both contribute to repayment, each can separately claim up to ₹2 lakh under Section 24(b) and ₹1.5 lakh under Section 80C, effectively doubling the household's deduction.

A longer tenure lowers the EMI and raises eligibility, but the total interest cost rises sharply. On a ₹50 lakh loan at 8.5%, twenty years costs about ₹54 lakh in interest while thirty years costs roughly ₹88 lakh. A sensible approach is to take the longer tenure for the lower committed EMI and safety margin, then prepay whenever you have surplus. Floating-rate home loans in India carry no prepayment penalty for individual borrowers, so this gives you flexibility at no cost.

Most lenders require the loan to be fully repaid by age 60 to 65 for salaried applicants and up to 70 for self-employed applicants. This is why tenure shortens as you get older — a 45-year-old salaried applicant will usually be offered fifteen to twenty years rather than thirty. Adding a younger co-applicant, such as a working adult child, can extend the available tenure.

The large majority of Indian home loans are floating, and for most borrowers that remains sensible. Floating rates are linked to an external benchmark, usually the RBI repo rate, so they fall when the repo rate falls and carry no prepayment penalty for individuals. Fixed rates in India are typically 1–2% higher at the outset and often reset after a few years in any case. Floating rates are generally the better choice unless you have a strong conviction that rates will rise sharply and you value certainty above cost.

Yes. Stamp duty and registration are budgeted at 7% of the property value and deducted from your available savings before working out how much home you can buy. This matters because stamp duty cannot be included in a home loan — it must be paid from your own funds at registration. Many buyers discover this only at the last moment, which is precisely the situation this calculator is designed to prevent.

Budget for stamp duty and registration at 7–8%, brokerage at up to 1–2% where applicable, GST at 5% on under-construction property, one-time society and club charges of ₹3–8 lakh in NCR townships, parking charges, and interiors at ₹1,200–2,500 per square foot. Taken together these routinely add 12–15% to the headline price. Keeping an emergency fund intact through all of this is not optional — it is the difference between a manageable purchase and a fragile one.

It is a well-established guideline rather than a rule. We flag anything above 45% because that is where most households begin to feel genuinely constrained, and because a bank's willingness to approve does not account for school fees, medical costs or an uncertain bonus. If your income is high, your job unusually secure and your other expenses low, a higher ratio can be perfectly manageable. If your income is variable or you support dependents, aim well below the flag.

Yes, though the assessment differs. Lenders typically require two to three years of income tax returns, audited financials, GST returns and bank statements, and they usually assess eligibility on your declared taxable profit rather than gross receipts. Because many self-employed applicants optimise their declared income for tax, this can result in a lower sanction than expected. Some lenders offer assessed-income or banking-surrogate programmes that consider bank turnover instead. Our advisory team can point you towards the lenders whose criteria fit your profile.