You can generally get a home loan that is 60 times your monthly salary. A salary of Rs.40,000 can fetch you a home loan of around Rs.20-30 Lakh. But keep in mind that lenders usually do not consider your entire in-hand salary.
Your in-hand salary includes multiple components like basic salary, house rent allowance, medical allowance, leave travel allowance, etc. Lenders may not consider allowance components like medical and leave-travel allowance as they are for specific designated purposes.
Generally, lenders use a debt-to-income ratio to determine eligibility, and you might be eligible for a loan amount that results in monthly payments of around 40-50% of your monthly income.
Considering you have no current EMIs or other financial obligations, and you take a home loan at a 9% interest rate with a tenure of 20 years, here is the approximate home loan amount you can get for Rs.40,000 salary.
|
Monthly Salary |
Interest Rate (%) |
Home Loan Amount |
Monthly EMI |
|
Rs.38,000 |
9% |
Rs.19,00,000 |
17,100 |
|
Rs.39,000 |
9% |
Rs.19,50,000 |
17,550 |
|
Rs.40,000 |
9% |
Rs.20,00,000 |
18,000 |
|
Rs.41,000 |
9% |
Rs.20,50,000 |
18,450 |
|
Rs.42,000 |
9% |
Rs.21,00,000 |
18,900 |
Related read: Find out how much home loan you can get on a Rs.50,000 salary
Apart from your salary, there are several other factors that lenders use to decide how much loan amount you can get. Here are a few factors that can affect your home loan amount:
Your credit score is a significant factor in determining your loan amount. A higher credit score can lead to better loan terms and a higher loan amount, as it indicates to lenders that you are a reliable borrower.
Your DTI compares your monthly debt payments to your monthly income. A lower DTI ratio means you have a good balance between debt and income.
The size of your down payment can affect the loan amount. A larger down payment reduces the loan amount needed and can also lead to better loan terms.
Lenders prefer borrowers with a stable employment history. Consistent employment means consistent loan repayment.
The appraised value of the property you wish to purchase will affect the loan amount. Lenders typically do not lend more than the property's appraised value.
Prevailing interest rates can affect the affordability of the loan, which in turn can influence the amount you can borrow.
The location of the property can also impact the loan amount, as some areas like metropolitan cities may have higher property values or different lending limits.
The loan tenure directly affects the monthly EMI payments. A longer tenure means lower monthly payments, as the loan amount is spread over a more extended period.
You can get a home loan of Rs. 20 Lakh to Rs.22 Lakh on a Rs.40,000 monthly salary. However, this range can vary as different lenders have different criteria for deciding the home loan amount.
It is advisable to contact your lender to figure out the actual amount for which you are eligible.
You can now get home loans up to Rs.1 Crore with interest rates starting from 8.5%. Visit the Moneyview website or app to finance your dream home today!
Frontend Development
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