Assume you have a monthly income of Rs 1 lakh, of which Rs 80,000 is used to pay your existing loan EMI. In this instance, what would you expect from a lender? Do you think your mortgage loan against the property will be approved? To determine your loan repayment capability, financial institutions take this factor into account. A debt-to-income ratio of less than 50% is considered good. Anything above that could result in a mortgage loan being denied last minute.
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