How to use the Home Loan Eligibility Calculator
Rejection hurts. Especially when it's for your dream home. Before you apply and risk a hard inquiry on your credit report, use the EzCalcy Home Loan Eligibility Calculator to see exactly where you stand. We use standard FOIR (Fixed Obligation to Income Ratio) norms to estimate your borrowing power.
📉 The FOIR Limit
Banks rarely allow your total EMIs to exceed 50% of your net monthly income. If you already have a car loan, your home loan eligibility drops significantly.
🤝 The Co-Applicant Hack
Want a bigger loan? Add a working spouse or parent as a co-applicant. Their income is added to yours, instantly boosting your eligibility.
The Formula
3 Ways to Increase Eligibility
- Wait for a Pay Hike: Since eligibility is a multiple of your salary, even a small raise can add lakhs to your loan amount.
- Close Existing Debts: Paying off a $15,000 car loan can release $300-$400 in monthly EMI capacity, allowing you to borrow $50,000+ more for a home.
- Increase Tenure: Opting for a 30-year tenure instead of 20 reduces the EMI, allowing you to borrow more today (though you pay more interest long-term).
Key Factors That Determine Eligibility
- Age: Younger applicants (20s-30s) get longer tenures (up to 30 years), increasing eligibility. Older applicants have shorter tenures, resulting in higher EMIs and lower loan limits.
- Credit Score (CIBIL): A score above 750 acts as a trust signal. Banks often waive strict FOIR limits for high-score applicants, allowing you to borrow more.
- LTV Ratio: Banks fund only 75-90% of the property value. Even if your income supports a $1M loan, if the house costs $800k, the bank will only lend ~$720k.
- Work Stability: Salaried employees with >2 years in current jobs are viewed as lower risk than fresh business owners.