The problem for many first-time home buyers in
Real Estate in India is they make the mistake of assuming they can afford monthly mortgage payments as big as their current rent payments. While it makes a certain amount of sense, that calculation overlooks some major factors. Property taxes and all those other ownership-related costs can add up to about the equivalent of three or more months of rent a year. Other monthly expenses to consider include mortgage loan and home owners insurance, the mortgage insurance is required by lenders if you have a high-ratio mortgage (usually when the loan to value of the home is greater than 80%). There is a more precise rule of thumb for determining how big a mortgage you can afford. First, you need to know your total monthly debt load and your total monthly housing costs to figure out an affordable maximum mortgage payment.
Keep your debts around 40 percent. In other words, the combined amount you pay in housing costs, car loans, personal loans and credit card debt shouldn't be more than 40 percent of your pretax income. To calculate your current TDS, divide your monthly debts by your monthly pretax income and multiply by 100. To determine what lenders will consider your maximum allowable debt, multiply your gross annual salary by 0.40 and then divide by 12.
Cap your housing expenses at 32 percent. That means your monthly mortgage payment, property taxes, insurance payments and heating & utility costs shouldn't be more than 32 percent of your monthly pretax income. To calculate your current GDS, divide your total monthly housing expenses by your gross monthly income and multiply by 100. To determine what lenders will consider your maximum allowable housing expenses, multiply your gross annual income by 0.32 and then divide by 12.
Mortgage payment 
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