How does the HFI judge my repayment capacity for a home loan?
Ans.: The HFI looks at your earning capacity both present and future to make a judgement call on your repayment capacity. Your existing obligations, your past repayment history, the quality of your earning (speculation and other non recurring income such as capital gains is normally not included in evaluating your repayment capacity) is considered. The HFI also gives due weightage to your age, experience, employer and your qualifications to arrive at your repayment capacity.
