Home Loan Eligibility Calculator
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About Our Home Loan Eligibility Calculator
Buying a home is a life-changing financial decision. Before house hunting, understanding how much you can borrow is essential. Our Home Loan Eligibility Calculator estimates your maximum loan amount based on income, existing debt, interest rates, and debt-to-income ratios—the same criteria lenders use to assess borrowers. This helps you set realistic expectations and strengthens your negotiating position.
With adjustable DTI thresholds, variable tenure options, and buffer adjustments for stress-testing, you can explore different borrowing scenarios. The calculator also shows your potential property price target when combined with down payment savings, helping you align house hunting with realistic financing. All calculations remain private and local—no data transmission or storage.
Frequently Asked Questions
What is the Debt-to-Income (DTI) ratio?
DTI is your total monthly debt payments divided by gross monthly income. Lenders use it to assess whether you can comfortably afford a new loan. Most lenders cap DTI at 43-50%. This calculator uses your target DTI to estimate maximum eligible loan amount.
What counts as existing debt for the calculator?
All monthly obligations: car loans, personal loans, student loans, credit card minimum payments, other mortgages, etc. Regular expenses like utilities or rent don't count, only debt payments. Higher existing debt reduces your home loan eligibility.
What's the difference between front-end and back-end DTI?
Front-end DTI: Housing costs only / income. Back-end DTI: All debt payments / income. This calculator uses back-end DTI (more restrictive). Lenders typically cap back-end at 43-50%, front-end at 28-31%. Check with your lender for their thresholds.
How does interest rate affect my eligibility?
Higher interest rates increase your monthly EMI, which reduces how much principal you can borrow while staying within DTI limits. A 1% rate increase can reduce eligible loan amounts by $50,000+. Always get pre-approval rates before determining your budget.
What's a reasonable maximum DTI to use?
Most lenders approve at 43% back-end DTI. Conservative borrowers prefer 36-40% to maintain financial cushion. Use 43% to see maximum eligibility, then test lower DTI (36-40%) to see safer borrowing capacity that maintains emergency savings ability.
How can I improve my home loan eligibility?
1) Pay off existing debts to lower monthly obligations. 2) Increase income (though lenders need verification). 3) Put down larger down payment to reduce borrowed amount. 4) Improve credit score for better rates. Test each scenario using this calculator.
What does the buffer adjustment mean?
Buffer adjustments stress-test your eligibility. A -5% buffer shows eligibility with slight income reduction. A -10% buffer shows safety margin for emergencies. Aggressive borrowers use 0% or +5%; conservative borrowers use -5% to -10% to maintain financial flexibility.
What's the difference between this estimate and actual lender pre-approval?
This calculator is indicative based on income and DTI. Actual lenders also consider: credit score, employment stability, savings/reserves, property location, loan type, insurance, taxes. Use this as guidance, then get formal pre-approval for exact amounts.
Should I aim for maximum eligibility or less?
Maximum eligibility leaves little financial cushion for emergencies or income disruption. Many financial advisors recommend borrowing 70-80% of maximum eligibility to maintain flexibility. This calculator helps you test different scenarios to find your comfort level.
Is my financial information secure?
Completely. All calculations happen in your browser. We never send your income, debt, or any financial data to any server. No storage, no tracking, no sharing. Your financial privacy is fully protected.