I also had a car loan a couple of years ago while applying for a home loan. To answer, does car loan affect home loan, yes it does. Be it any kind of loan, lenders assess your current liabilities in the form of debts. A car loan acts as a debt which reduces your ability to repay the home loan. I was still able to get a home loan even after having a car loan. I will share more details below.
How Does a Car Loan Affect a Home Loan?
A car loan is a type of debt and the higher your debt, the lower your chances of securing a home loan. Debts consume a part of your income and thus, they reduce your capability to make EMIs towards the home loan. So, banks see this as a major aspect of determining your home loan eligibility.
If you wish to secure a home loan while having a car loan, here are some things you need to do:
Reduce your debt by paying off your current car loan EMIs to lower your debt-to-income ratio. You can choose to make extra payments towards the car loan to get rid of it earlier.
Avoid any kind of new debt to not let any more burden on your income.
This is all I have to share with you. I hope you now have the answer to does car loan affect house loan.
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Authors Of The Question
Does Car Loan Affect Home Loan?
prateek
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2 days
2025-01-01T18:50:40+00:00 2025-01-01T18:50:41+00:00Comment
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