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

    Hope this helps.

  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

    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 .


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