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5 Factors That Impact Your Home Loan Amount

Have You Ever Questioned The Factors That Impact Your Home Loan Amount?

Thinking about purchasing a home makes you focus on the different aspects like checking your eligibility to get a home loan, hunting a lender that offers a low rate of interest for home loans. Your responsibility does not end here. Before you commit to purchase a home with specific value, you should understand that the lender considers some other factors that can decide your loan amount. If there is a shortfall between the amount sanctioned by the lender and the amount expected, you may have to adjust the gap with the down payment to close the deal. Check In these factors to increase quantum loan available.


Income is one of the main criteria upon which the home loan amount is decided. The lender considers 40%-50% of your income to service the loan.  This percentage varies from lender to lender slightly and they may improve the proportion of income considered for servicing the loan if you have a high income. This way, people with high income will benefit by getting high loan amount. The percentage consideration of the self-employed professionals and business people is different here.

Existing loan

Applying for the home loan does not necessarily mean that you have not applied for any loan till date. As it is said that a proportion of your income is taken towards deciding your eligibility to get the loan, the lenders subtract your existing EMI from the said proportion which results in reducing your housing loan amount eligibility. It is wise to prepay any outstanding EMIs on loans before you apply for the loan because the increased home loan amount will be much higher than the outstanding amount on your existing loan.

Age and job service remaining

Age is one of the crucial factors considered by the lender in deciding the loan amount which most of them are unaware of. Home loan tenure is generally available for the period of 20 years. It is good to take the housing loan at your 30’s and early 40’s. As the age increases, the eligibility of your home loan reduces thus impacting the loan amount availability. The lender considers the age of retirement as 60 years as the in the case of salaried people and 65 years in the case of self- employed, the loan should be closed before this.

Co- borrowers

If you think that your income is not sufficient to get the desired loan amount, you can add a co-borrower who is acceptable by the lender to increase the same. If the co-borrower is a joint owner of the property, it is mandated to include co-borrowers in the home loan application if they are joint owners even if they don’t have any income.

Home loan tenure

Home loan tenure also decides your home loan eligibility, higher the loan tenure, larger will be loan amount. As the lenders are offering the loan at flexible interest rates, you will enjoy good flexibility in repaying the loan amount.


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