Assess your financial readiness before buying a house.
Last updated: 26 Jun 2026
3 Views
Assessing Your Readiness
1. Check Your Savings
Since banks may not approve a loan for the full price of the house, buyers should have savings ready for a down payment of at least 10% of the house price. They should also have funds set aside for home renovations and transfer fees.
__________________________________________
2. Check Your Total Income
The question of how much the monthly payment would be for a 3 million baht house can be roughly answered using the formula of 7,000 baht per million baht borrowed as a starting point, and then calculated as follows:
• Based on a 7,000 baht per million baht borrowed, a 3 million baht house would require a monthly payment of 21,000 baht.
• 21,000 baht per month / 70% of income (ability to repay) = 30,000 baht monthly salary
However, in reality, buyers may have other outstanding expenses or debts that reduce their ability to repay. And the monthly mortgage payment could be higher than 21,000 baht, making it difficult for someone with a 30,000 baht salary to comfortably afford a 3 million baht house.
Therefore, buyers should budget around 45,000 baht to avoid excessive debt burden, or consider having a family member co-sign the loan to increase their repayment capacity.
__________________________________________
3. Check the buyer's age against the loan term.
Buyers under 40 years old can repay the loan over 30 years. However, if older, there's a solution: a family member with income and under 40 years old can be the primary borrower, and a person over 40 can be a co-borrower. The bank will then calculate the loan term based on the primary borrower's age, allowing the buyer to repay over the maximum 30 years.
__________________________________________
Prepare for potentially higher monthly payments in the future.
Some banks may offer very low monthly payments in the first few years before increasing later. This can be addressed through retention to secure a promotional interest rate from the original bank, or by refinancing to another bank offering a lower interest rate.
The buyer must ensure that... Loans taken out with banks do not have a clause prohibiting refinancing after the low-interest rate promotional period ends.
__________________________________________
Thank you for the helpful information from DD Property.
1. Check Your Savings
Since banks may not approve a loan for the full price of the house, buyers should have savings ready for a down payment of at least 10% of the house price. They should also have funds set aside for home renovations and transfer fees.
__________________________________________
2. Check Your Total Income
The question of how much the monthly payment would be for a 3 million baht house can be roughly answered using the formula of 7,000 baht per million baht borrowed as a starting point, and then calculated as follows:
• Based on a 7,000 baht per million baht borrowed, a 3 million baht house would require a monthly payment of 21,000 baht.
• 21,000 baht per month / 70% of income (ability to repay) = 30,000 baht monthly salary
However, in reality, buyers may have other outstanding expenses or debts that reduce their ability to repay. And the monthly mortgage payment could be higher than 21,000 baht, making it difficult for someone with a 30,000 baht salary to comfortably afford a 3 million baht house.
Therefore, buyers should budget around 45,000 baht to avoid excessive debt burden, or consider having a family member co-sign the loan to increase their repayment capacity.
__________________________________________
3. Check the buyer's age against the loan term.
Buyers under 40 years old can repay the loan over 30 years. However, if older, there's a solution: a family member with income and under 40 years old can be the primary borrower, and a person over 40 can be a co-borrower. The bank will then calculate the loan term based on the primary borrower's age, allowing the buyer to repay over the maximum 30 years.
__________________________________________
Prepare for potentially higher monthly payments in the future.
Some banks may offer very low monthly payments in the first few years before increasing later. This can be addressed through retention to secure a promotional interest rate from the original bank, or by refinancing to another bank offering a lower interest rate.
The buyer must ensure that... Loans taken out with banks do not have a clause prohibiting refinancing after the low-interest rate promotional period ends.
__________________________________________
Thank you for the helpful information from DD Property.
Related Content
20 Apr 2025
