Home Loan Affordability Calculator

LTV (Loan-to-Value) is the maximum percentage of a property's value that a bank will lend. RBI's Master Direction on Housing Finance sets the slabs:

• ≤ ₹30 Lakh property — 90% LTV (minimum 10% down)
• ₹30L – ₹75L — 80% LTV (minimum 20% down)
• > ₹75 Lakh — 75% LTV (minimum 25% down)

The remaining percentage must come from your own savings as the down payment. The LTV rule exists for two reasons: it gives banks a safety cushion if property prices fall, and it ensures borrowers have real skin in the game so they're less likely to default. Lender valuation reports can also restrict loan to a lower of agreement value vs valuation value, so always confirm both figures before locking in a property.

No. While the broad framework is similar across HDFC / SBI / ICICI / Axis / Bajaj, individual lenders apply different slabs. Key variations:

• Income basis — some use gross salary, others use net take-home after taxes and PF.
• Credit-card treatment — most lenders add 5% of credit-card outstanding to existing EMIs even if you pay in full each month.
• Super-prime carve-out — borrowers with CIBIL 800+ at listed-company salary can sometimes unlock 65–70% FOIR at lenders' discretion.
• Residual income test — a few lenders additionally require a minimum absolute rupee balance after EMIs (e.g., ₹15,000/mo for a family of 4 in a metro), which can over-ride a generous FOIR.

The FOIR shown by this calculator reflects standard industry norms (40–55% by income band). Always confirm the actual FOIR with your specific lender before signing a property booking.

Longer tenure reduces the monthly EMI for the same loan amount, which lets you qualify for a larger principal within the same FOIR cap. That's why this calculator shows the affordable property price increasing as you compare 15 / 20 / 25 / 30 years for the same income.

The trade-off: total interest paid over the life of the loan rises sharply. A 30-year loan often pays 2.5–3× the principal in interest, vs roughly 1× for a 15-year loan. On a ₹50L loan at 8.5%, that's ₹89 Lakh in interest over 30 years vs ₹38 Lakh over 15 years — a ₹51 Lakh difference for the lower EMI.

A common middle path: take the long tenure for safety (lower mandatory EMI = better cash-flow cushion) and prepay aggressively whenever bonus / variable-pay cash comes in. RBI prohibits prepayment penalties on floating-rate retail home loans, so you can prepay without a charge any time.

The minimum down payment is set by the RBI LTV cap:

• Property ≤ ₹30 Lakh — at least 10% down
• ₹30L – ₹75L — at least 20% down
• > ₹75 Lakh — at least 25% down

Beyond the minimum, a larger down payment delivers three benefits: (1) unlocks a bigger property within the same loan eligibility — every extra rupee of down payment in the 80% band lets you borrow roughly ₹4 more; (2) lowers monthly EMI and total interest; (3) shows lenders you have savings discipline, which can unlock a better rate.

Planning rule of thumb: aim for 25–30% down + a separate 6-month emergency fund + budget for stamp duty (3–7%) and registration (1%). Don't drain your full savings just to clear the down payment — you'll still need cash for furnishing, interior work (₹500–2,000/sqft), and processing fees (0.5–1% of loan).