how much home loan can i afford?

POSTED BY naveenarichwal ON December 30, 2010 2:01 am COMMENTS (2)

Respected Sir,

I am Dr Naveen Arichwal, age 37yrs,Monthly salary of 65000/-, monthly expenditure Rs.10000/-

and Saving of Rs 7-8 Lakhs, I am investing approx 10000/-p.m. in LIC,EPF,MF,Health insurance

etc. My family consists of Housewife +3yrs old daughter.And at present i am living in

Faridabad (Haryana) & doing job in Fortis hospital as Senior resident -Emergency Medicine.

 

My query is:-  How should i decide the amount of EMI that i can afford to repay

(comfortably) the home loan that i have to take ,to buy a residence.?

 

2.How much % of total cost of property the bank will give me Homeloan? Should i opt for Fixed rate  or floating rate of interest .How to decide?

 

3.I am paying house rent of Rs.5200/-p.m. +water & electricity. Can i claim tax benefit  for

the rent that i am paying per annum? What documents i have to enclose for this benefit?

 

Please advice.

 

 

 

2 replies on this article “how much home loan can i afford?”

  1. Ramesh says:

    At present, there are only floating rate loans available. Even the “fixed rate” loans nowadays come with a clause of revision at some particular intervals.

    Also, go through this
    http://www.subramoney.com/2010/12/housing-interest-tax-deductions/

    Hope this helps.
    Ramesh

  2. Naveen

    1) to give answer of your first query , you should incorporate the max interest rate , which can go up in future, be ready for it , so even if interest rate at the moment is 10% ,calculate how much can you pay incase it goes up to 14% (last high) . read more on http://www.shyamscolumn.com/2009/10/prepare-for-higher-interest-rate-on.html

    2) You should take 80% as the figure ,overall it would be around that , so be ready to ay 20% or more from your pocket , the main point here is that take loan which you can afford . Fixed or floating is a different thing which you should decide.

    3) I think you mean HRA here , yes you can claim the HRA if you are not resiging in the house which you will buy .

    Manish

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today