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Home Loan affordability Calculator

Free Home Loan affordability Calculator from EZTax.in lets you estimate your affordable property cost, your eligible home loan amount, along with additional down payment requirements, and monthly EMI payment including principal amount, interest amount based on gross monthly income amount, loan tenure, rate of interest (ROI), other exiting EMIs. Check how changes affect your loan affordability & more.

 
 
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Monthly EMI Schedule

Frequently asked Questions on Home Loan affordability

1.Important factors affecting home loan affordability

Knowing factors affecting make you prepare to get the highest loan amount at reasonable interest rates and most favourable loan terms.

A Lender who is a Bank, Non-Banking Financial Company (NBFC), and/or any specialised lending house is primarily look at your ability to pay back the loan in the given timeline.

  1. Your nature and the amount of monthly income drawn from your business and//or profession.
  2. Your Credit History
  3. Your income tax returns filed for last 3 years.
  4. Your existing loans that are active and still to pay.
  5. Percentage of loan expected against property being purchased. It's much easier to get the home loan if the amount of loan is less than 70% of the total purchase price.
  6. Also the age group you fall in to, 26 to 38 years of age is much easier to get a favourable loan.

2.Best age group to take a most favourable home loan ?

While eligibility is based on many factors and et times age group may not be a factor but in most cases age is an important factor.

Age between 20 to 60 is the criteria for most banks, but 25 to 45 is the most favoured group for private lending institutions, who may give the loan tenure up to 25 years

3.How important it is to have income tax returns (ITR) for a home loan ?

These days, it is very common to deny a house loan for not having income tax returns filed for last 3 years

IT Returns carry most credible information of one's income whether the person is working as an employee, being a professional, self-employed individual, and / or working as a freelancer.

Filing your IT return is much easier and can be done by your own without taking any professional help using portals like EZTax.in. Check how to efile your return by yourself without any profesional help

4.Can I get a home loan from a bank other than my current bank ?

100%. There is no restriction in getting a home loan from any bank. In fact, you should be choosing a bank who is giving a highest loan, lowest interest rate, and the best loan term.

5.How to increase my chance of getting the best possible home loan ?

Home loans are long term loans typically from 15 to 30 years. Even a minor lower interest rate may help you reducing the monthly EMI burden. It is important to prepare thoroughly before taking the home loan for your dream home.

  1. Plan well in advance identifying the house before you purchase. This gives you time to prepare options you have in selecting the best possible loan.
  2. Pay back smaller loans if any on your name to make sure your lender see a clean history, which is an important factor when a banker offering a loan.
  3. Prepare your income tax returns, ( EZTax.in can help you preparing your taxes easily, accurately and promptly )
  4. Apply your home loan with your spouse / partner / sibling or parent as a co-applicant to increase the chances of getting higher loan and favourable terms.
  5. Apply loan only after careful planning, do not apply at multiple banks at once, as this may show your desperation to get a quick loan where the banker may not offer a favourable interest rate for you.
  6. Last but not the least, increase the down-payment for your home using your own funds and take lesser home loan from the lender / banker. This shows your confidence to pay back your home loan and lender / banker sees less risk in offering a loan.