I can't afford the house payments. What should I do?
Last updated: 3 Aug 2025
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Even if you've carefully calculated your financial readiness before applying for a home loan, life's timing is uncertain. Unforeseen circumstances can arise that make it difficult for you to meet your home loan payments. For example, you may be laid off, losing your income, or your business may experience financial difficulties due to the economic crisis or political unrest both domestically and internationally. In reality, if you're unlucky enough to face home loan payments, it doesn't necessarily mean your home will be foreclosed. There are several debt settlement options available, including:
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1. Request a Lower-than-Normal Installment Payment
In the case of home loan insufficiency, home loan applicants may not be financially struggling to meet their monthly payments. However, financial difficulties may prevent them from making the full monthly payments. Therefore, they can submit a request to the lending bank for a lower-than-normal installment payment. The borrower must provide detailed information about the reasons for their inability to make the full installment payment for the bank's consideration. If the bank determines that the borrower still has a stable job and regular income, but may have lost some of their income due to unforeseen circumstances, or has other financial obligations that increase their expenses, they will be able to approve the request for a lower-than-normal installment payment. Normally, the loan will allow for a lower installment payment period of no more than two years.
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2. Request a loan interest rate reduction
This is another method to help borrowers get back on track with their home loan payments. Requesting a lower interest rate from the original lender is also known as a retention program, but it can only be done after three years of installment payments. If the loan is unable to be lowered with the original bank, another option is to apply for a refinancing with another bank. This means borrowing from a new bank with a lower interest rate to clear the debt with the original bank and then switching to lower installment payments with the new bank.
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3. Request a repayment extension
The longer the repayment period for a home loan, the lower the monthly installments. Therefore, if after applying for a home loan and making payments for a while, you feel you cannot afford the installments, you can consult your bank and request an extension for a repayment period of five or 10 years. The longer the repayment period, The monthly repayment rate will be recalculated, resulting in a lower installment amount than previously impossible. However, age restrictions are a significant obstacle when requesting an extension. The maximum repayment period cannot exceed 40 years, and the borrower must be no older than 70 years of age in the final year of the repayment period. Therefore, if the borrower is older, the repayment extension may not be as effective.
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4. Request a debt suspension
If the borrower's financial situation is severely critical, a viable solution is to request a debt suspension. There are two options: requesting a suspension of interest payments only, but still requiring monthly principal payments. Or, requesting a suspension of both principal and interest payments, meaning no installment payments at all for a specific period. Usually, if the bank accepts the request, the suspension will last for approximately 3-6 months.
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Whenever a borrower experiences financial difficulties that prevent them from making their regular installment payments, there are still ways to alleviate these difficulties by consulting with the lending bank. However, Banks want to help borrowers repay their debts until the end of the contract. However, for debt settlement applications to be approved through various methods, it depends on the borrower's repayment history, including the number of past defaults. The cause of the problem must also be considered, as well as the borrower's ability to earn income.
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Thank you for the great information from REIC.
__________________________________________
1. Request a Lower-than-Normal Installment Payment
In the case of home loan insufficiency, home loan applicants may not be financially struggling to meet their monthly payments. However, financial difficulties may prevent them from making the full monthly payments. Therefore, they can submit a request to the lending bank for a lower-than-normal installment payment. The borrower must provide detailed information about the reasons for their inability to make the full installment payment for the bank's consideration. If the bank determines that the borrower still has a stable job and regular income, but may have lost some of their income due to unforeseen circumstances, or has other financial obligations that increase their expenses, they will be able to approve the request for a lower-than-normal installment payment. Normally, the loan will allow for a lower installment payment period of no more than two years.
__________________________________________
2. Request a loan interest rate reduction
This is another method to help borrowers get back on track with their home loan payments. Requesting a lower interest rate from the original lender is also known as a retention program, but it can only be done after three years of installment payments. If the loan is unable to be lowered with the original bank, another option is to apply for a refinancing with another bank. This means borrowing from a new bank with a lower interest rate to clear the debt with the original bank and then switching to lower installment payments with the new bank.
__________________________________________
3. Request a repayment extension
The longer the repayment period for a home loan, the lower the monthly installments. Therefore, if after applying for a home loan and making payments for a while, you feel you cannot afford the installments, you can consult your bank and request an extension for a repayment period of five or 10 years. The longer the repayment period, The monthly repayment rate will be recalculated, resulting in a lower installment amount than previously impossible. However, age restrictions are a significant obstacle when requesting an extension. The maximum repayment period cannot exceed 40 years, and the borrower must be no older than 70 years of age in the final year of the repayment period. Therefore, if the borrower is older, the repayment extension may not be as effective.
__________________________________________
4. Request a debt suspension
If the borrower's financial situation is severely critical, a viable solution is to request a debt suspension. There are two options: requesting a suspension of interest payments only, but still requiring monthly principal payments. Or, requesting a suspension of both principal and interest payments, meaning no installment payments at all for a specific period. Usually, if the bank accepts the request, the suspension will last for approximately 3-6 months.
__________________________________________
Whenever a borrower experiences financial difficulties that prevent them from making their regular installment payments, there are still ways to alleviate these difficulties by consulting with the lending bank. However, Banks want to help borrowers repay their debts until the end of the contract. However, for debt settlement applications to be approved through various methods, it depends on the borrower's repayment history, including the number of past defaults. The cause of the problem must also be considered, as well as the borrower's ability to earn income.
__________________________________________
Thank you for the great information from REIC.
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