Discover the maximum home price you can afford based on your finances.
Home affordability is determined by your income, existing debts, down payment, interest rate and loan tenure. Lenders typically use the Debt-to-Income (DTI) ratio to assess how much of your monthly income is allocated to debt payments.
Monthly home loan EMI should not exceed 28% of gross monthly income.
All monthly debt payments (including home loan) should stay below 36% of income.
A common rule is to target a home costing no more than 3โ5ร annual income.
A 20% down payment avoids PMI and reduces your loan amount significantly.