In this episode of Money Money Money, Adhil Shetty, founder & CEO of BankBazaar.com, and Harsh Roongta, founder of Fee Only Invst Advisers, talk about investing in dream house and how should people structure their home loan.

Experts weigh in on how one finds the right loan, whether one should refinance one’s home loan from time to time and how does one find the lowest rates.

Harsh Roongta said, “If you are thinking of taking a loan to buy the house you would have some surety about the future incomes and that is the reason you would be looking to take a long-term loan like a home loan. So, typically your home should cost you in the regions of 4 to 4.5 times your annual salary. If it is in that region then I think it will be within your overall affordable space.”

“Basically whatever income goes to support that purchase, 4 times or 4.5 times the annual income is I think safely can be said to be an affordable house for that particular person,” Roongta added.

Adhil Shetty said, “During the pandemic we had seen an increase in the home loan ticket size and like you rightly pointed out it is because people see the need to invest in a nice home given the pandemic and how much time we are spending at home and various other reasons like interest rates are lowest they have been in 15 years.”

He added, “What we advise people is always secure your obligations, so your EMIs, your insurances, your expenses you can always calculate your home loan eligibility online. But if you want to stretch more than 40 percent then you secure your obligations and you have disposable income to do that little bit of a stretch.”

Watch accompanying video for more.

(Edited by : Bivekananda Biswas)