What is the formula to calculate home loan eligibility?

There is no one specific mathematical formula used to determine home loan eligibility. It is based on a range of factors assessed by the financial institution.

The main factors that decide your home loan eligibility are your income, your monthly obligations, your age, and the city you live in. When you input all the numbers into a Home Loan Eligibility Calculator, you can determine the approximate maximum loan amount you can qualify for.

The final loan amount offered depends on the outcome of the financial institution’s eligibility assessment based on your specific financial situation.