Home Affordability Calculator
Calculate how much house you can afford based on your financial situation
After taxes
%
years
🏦 Bank Eligibility Guidelines
📊EMI should not exceed 40-50% of monthly income
💰Minimum down payment: 10-20% of property value
📅Maximum loan tenure: 30 years (up to age 70)
🏠Property value should not exceed 5-6 times annual income
Home Affordability Guidelines
📊 The 28/36 Rule
A standard guideline used by lenders:
- 28%: Housing expenses ≤ 28% of gross income
- 36%: Total debt payments ≤ 36% of gross income
- EMI + insurance + taxes ≤ 28%
- All debts (including new EMI) ≤ 36%
💰 Budget Considerations
Factors to consider when buying a home:
- Down payment: 10-20% of property value
- Closing costs: 2-5% additional
- Emergency fund: 3-6 months expenses
- Maintenance: 1-2% of property value annually
Frequently Asked Questions (FAQs)
Affordability is based on your income, expenses, down payment, and loan terms. Typically, your EMI should not exceed 40% of your monthly income.
Use your net monthly income (after taxes). Include all stable income sources like salary, bonuses, rental income, etc.
Typically 10-20% of property value. Higher down payment reduces loan amount and EMI, making property more affordable.
Aim for total debt payments (including new home loan) below 40-50% of your monthly income for financial stability.
Yes! Consider future expenses like children's education, retirement savings, and emergency funds when calculating affordability.
