
Purchasing a home is one of the largest financial investments you'll ever make. One of the first things that crosses your mind is: how much mortgage can I get? In 2025, lenders apply certain criteria to calculate how much home loan you can obtain, and knowing them can enable you to plan better.
Key Factors That Determine How Much Mortgage You Can Obtain
Various factors decide how much mortgage can I get:-
- Income: Banks give loans where your EMI (Equated Monthly Installment) is not more than 40-50% of your net monthly salary.
- Credit Score: A credit score of 750 or more gives you a better chance of securing a higher loan amount.
- Age and Employment: Younger borrowers with secure employment are lower risks and can get longer tenures and higher amounts.
- Existing Liabilities: Your existing loans (personal, vehicle, credit card debt) are deducted from your eligibility.
- Property Value: The majority of banks lend 75%-90% of the value of the property (Loan-to-Value or LTV ratio).
How to Calculate How Much Home Loan You Can Get
In order to approximate how much home loan can I get, follow this simple formula:-
Step 1: Determine your net monthly income.
Step 2: Take your net monthly income and multiply it by 50% to determine your potential EMI.
Step 3: Calculate the loan amount for that EMI for a period of 20–30 years at prevailing interest rates (typically 8%–9% per annum) using an EMI calculator.
Example:-
Assuming your net monthly income is ₹80,000, the maximum EMI would be approximately ₹40,000. With an interest rate of 9% for 20 years, you could potentially receive a loan of ₹40–45 lakhs.
Tools to Assist You in Knowing How Much You May Borrow Mortgage
You may utilize free online mortgage eligibility calculators from banks as well as finance websites. Just put in your income, age, tenure, and interest rate to know instantly how much I could borrow for a mortgage.
Conclusion
Having an idea of how much home loan I can get in 2025 puts you in a realistic budget and limits your search for properties. Always try to borrow wisely, considering future costs and rate fluctuations. A pre-approved loan will also shorten your time in searching for a home.