Buying a house in the city is always everyone's dream, but the question arises that how much salary should one have to buy a house so that the bank easily gives a home loan and there is no problem in paying the EMI? So, if you are also in this confusion, then we will know that if your salary is less than 1 lakh, then according to your salary, how much can you dream of buying a house, and what will be the calculation of the home loan EMI?

Buying a house on a salary of less than 1 lakh

Buying a house in the city is everyone's dream, but many times people invest their entire savings in buying this dream home and also take out loans to make their heads. But if we understand beforehand how much salary is required to buy a house in the city, then we will not be trapped in the debt trap in the future. Yes, often people buy a house more expensive than their salary capacity in excitement and then remain burdened with EMIs for the rest of their lives. So today we will know how much money you can dream of buying a house in the city, according to your salary. Apart from this, what does the math of home loan EMI say, and how can you become the owner of your 'dream home' without any tension?

'First lesson' of home loan

By the way, you should not spend more than 40% of your total monthly salary on any kind of EMI (including home loan, car loan, personal loan, etc.). If only home loan EMI is talked about, then it should not be more than 30-35%.

Know how much EMI your pocket can bear.
Let's assume that if your monthly salary is ₹50,000, then according to the 40% rule, your total EMI capacity should be within ₹20,000. If you can easily repay the home loan EMI of ₹15,000-₹18,000, then only take the loan. On this EMI (suppose for 20 years at an 8.5% interest rate), you can get a loan of around ₹15-₹18 lakh. On the other hand, if your monthly salary is ₹1,00,000, then your EMI capacity can be up to ₹40,000. You can manage a home loan EMI of around ₹30,000-₹35,000, which can help you get a loan of around ₹30-₹38 lakh. That is, if the salary is less than 1 lakh, it would be better if you do not get trapped in the trap of a home loan.

Additional expenses of the house

Not only is the EMI of a home loan a part of life, but there are many other expenses of buying a house, which people often ignore. Before buying a house, you have to pay about 10-25% of the down payment from your pocket. Apart from this, registry and stamp duty, interior and furnishing, maintenance charge, property tax, etc., also have to be paid. So, if the salary is low, then make a budget for buying a house by estimating all these expenses in advance.

Credit score is 'king'

Your credit score plays a very important role in getting a home loan and deciding its interest rate. So if your credit score is 750 or above, then you can easily get a loan at a low interest rate. Yes, people with poor scores either do not get a loan at all or get it at a very high interest rate.

'Time table' for repaying the loan

Usually, home loans are available for a period of 5 to 30 years. Long-term loans have low EMI, which reduces the burden on the pocket, but more interest has to be paid. But in the short term (like 10-15 years), EMI is high, but you save a lot of money in the form of interest, and the loan gets over quickly.

Lighten the burden of EMI.
If you manage to arrange money in between (like bonus, increment), then you can use it by 'pre-paying' your home loan. By doing this, the principal amount will be reduced, or the loan period will be reduced due to low EMI. In both ways, your interest is saved completely.

There should be no 'fear of debt'
It is a very good thing to dream of your own house in less than 1 lakh and to fulfill it. But this decision should not be taken by getting carried away by emotions, but by keeping in mind your financial capacity, future needs. If your salary is low, then do not rush to buy a house; by doing this, you can gradually get trapped in the debt trap. That is, all your money will be spent in repaying the loan, and it can have a bad effect on other needs. (Disclaimer: This article is for general information and financial awareness. Home loan terms and interest rates may change according to the bank and time.

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