Can I get a home loan over a personal loan?

Can I get a home loan over a personal loan?

Having a personal loan will not make or break your chances of obtaining a mortgage loan, but it will have a negative impact on your serviceability. A Personal Loan will directly affect your debt-to-income ratio, but if you do have a good credit score then chances of getting a home loan can be high. It is a crucial financial ratio that assists the lender in determining the part of your income that goes toward EMI payments. If the debt-to-income ratio exceeds 30%, the prospects of obtaining a home loan are reduced. Any type of debt is a responsibility, and the more your debts, the more difficult it will be to commit to your mortgage repayments.