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11 MAY, 2022
Homeownership looks different for different people depending on their age, income, lifestyle, personality, priorities, etc. There is a home for everyone out there and a home loan helps finance that home. What is important to know, however, is your home loan affordability before you start house hunting. Home affordability, in simple terms, is the budget in which you should look at homes and this is determined by parameters such as your income, existing debt, loan tenure, down payment, etc. An easy way to gauge your home affordability is to use a home loan affordability calculator.
What is a home loan affordability calculator?
A home loan affordability calculator is a helpful tool that you can find online on your preferred lender’s website. You need to input details such as your in-hand salary, home down payment, loan tenure, home loan interest rate, etc. Using this information, the home loan calculator gives you a number that essentially estimates the cost of the property you can afford.
Benefits of using a home loan affordability calculator
Here are some of the most important benefits of using a home loan affordability calculator when applying for a home loan:
The bottom line
A home loan affordability calculator helps set the course of your home buying journey, including your home loan process. It allows you to buy a home and finance it in a way that is comfortable for you financially and gives you clarity on all the important numbers. While these are just estimates, they serve as a good starting point. A home loan affordability calculator is the most helpful when you use it along with a home loan EMI calculator.
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