Choosing a loan with easy installments
Last updated: 3 Aug 2025
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Whether it's a house or a condo, these are large, high-value properties that most people consider to be a good investment. However, even after applying for a home loan, if the loan isn't carefully selected, it can lead to financial difficulties. Therefore, carefully selecting the loan that best suits your needs is crucial for those planning to buy a home. Here are some tips for selecting a loan that will help you purchase a home or condo with comfortable installments:
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1. Choose a loan with the lowest interest rate
This is the first and easiest criteria for screening home loans before considering other details. We should check and compare home loan interest rates from multiple banks. The bank with the lowest interest rate is the best choice. This is because interest rates directly affect the repayment amount. Furthermore, when comparing home loan interest rates, it's important to calculate the average interest rate over the loan term. Some banks offer low interest rates initially to attract customers. However, interest rates will later increase until the end of the loan term. Therefore, over the entire loan term, a low-interest loan may not always provide the lowest possible home or condo loan.
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2. Choose the loan with the highest loan amount.
The home loan amount you receive will determine how much you'll need to spend out of pocket to cover the difference. For example, if you want to purchase a 2,000,000 baht home and apply for a bank loan with a maximum of 80%, you'll receive 1,600,000 baht from the bank, with the remaining 400,000 baht to be paid out of pocket. However, banks typically offer a maximum loan amount of 70-100%, depending on each bank's criteria. The borrower's financial status also plays a crucial role in determining the maximum loan amount. Therefore, it's important to thoroughly prepare your financial situation before applying to any bank and then carefully consider which bank offers the highest loan amount.
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3. Choose a loan with the longest repayment period.
One of the key variables in determining the length of repayment that banks will give borrowers is the borrower's age. If the borrower is older, they may not be eligible for a long repayment period, resulting in a higher monthly payment. Typically, most banks offer loan terms of 15-30 years, or even longer, depending on the terms and conditions. The maximum age limit for borrowers is 70 years. Therefore, when planning a home loan, it's important to determine the appropriate age for the loan. If you apply for a home loan at an older age, the repayment burden may become unbearable due to the shorter repayment period.
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4. Choose a bank that offers debt restructuring.
We must remember that once a home or condo loan is approved by the bank, you will be liable for the loan for at least ten years. From the day you decide to apply for a home loan and beyond, your financial situation may change, either for the better or for the worse. For this reason, Choosing a bank that offers flexibility in debt restructuring is more suitable for our life's pace and financial situation. For example, we can request an extension of the repayment period, resulting in lower monthly payments, or request a lower interest rate to ease our financial burden. If we have a lump sum and want to pay off our debt faster, we can do so by requesting a discount. Furthermore, if we encounter a crisis where we truly cannot repay our debt, we can request a debt suspension under the best possible terms.
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In reality, there are other factors to consider when choosing a loan, such as processing fees and interest rate increases for late payments. This clearly demonstrates that choosing a home loan involves important details that must be taken into account to ensure we get the loan that best meets our needs and benefits our repayments. Therefore, once you've decided to purchase a house or condo, you shouldn't rush into making a decision. Instead, prioritize thorough research and comparisons, ask questions about any unclear issues, and inquire about the various benefits you can receive from the bank. This will provide you with the information you need to ensure you get the best loan possible.
___________________________________________
Thank you for the great information from REIC.
___________________________________________
1. Choose a loan with the lowest interest rate
This is the first and easiest criteria for screening home loans before considering other details. We should check and compare home loan interest rates from multiple banks. The bank with the lowest interest rate is the best choice. This is because interest rates directly affect the repayment amount. Furthermore, when comparing home loan interest rates, it's important to calculate the average interest rate over the loan term. Some banks offer low interest rates initially to attract customers. However, interest rates will later increase until the end of the loan term. Therefore, over the entire loan term, a low-interest loan may not always provide the lowest possible home or condo loan.
___________________________________________
2. Choose the loan with the highest loan amount.
The home loan amount you receive will determine how much you'll need to spend out of pocket to cover the difference. For example, if you want to purchase a 2,000,000 baht home and apply for a bank loan with a maximum of 80%, you'll receive 1,600,000 baht from the bank, with the remaining 400,000 baht to be paid out of pocket. However, banks typically offer a maximum loan amount of 70-100%, depending on each bank's criteria. The borrower's financial status also plays a crucial role in determining the maximum loan amount. Therefore, it's important to thoroughly prepare your financial situation before applying to any bank and then carefully consider which bank offers the highest loan amount.
___________________________________________
3. Choose a loan with the longest repayment period.
One of the key variables in determining the length of repayment that banks will give borrowers is the borrower's age. If the borrower is older, they may not be eligible for a long repayment period, resulting in a higher monthly payment. Typically, most banks offer loan terms of 15-30 years, or even longer, depending on the terms and conditions. The maximum age limit for borrowers is 70 years. Therefore, when planning a home loan, it's important to determine the appropriate age for the loan. If you apply for a home loan at an older age, the repayment burden may become unbearable due to the shorter repayment period.
___________________________________________
4. Choose a bank that offers debt restructuring.
We must remember that once a home or condo loan is approved by the bank, you will be liable for the loan for at least ten years. From the day you decide to apply for a home loan and beyond, your financial situation may change, either for the better or for the worse. For this reason, Choosing a bank that offers flexibility in debt restructuring is more suitable for our life's pace and financial situation. For example, we can request an extension of the repayment period, resulting in lower monthly payments, or request a lower interest rate to ease our financial burden. If we have a lump sum and want to pay off our debt faster, we can do so by requesting a discount. Furthermore, if we encounter a crisis where we truly cannot repay our debt, we can request a debt suspension under the best possible terms.
___________________________________________
In reality, there are other factors to consider when choosing a loan, such as processing fees and interest rate increases for late payments. This clearly demonstrates that choosing a home loan involves important details that must be taken into account to ensure we get the loan that best meets our needs and benefits our repayments. Therefore, once you've decided to purchase a house or condo, you shouldn't rush into making a decision. Instead, prioritize thorough research and comparisons, ask questions about any unclear issues, and inquire about the various benefits you can receive from the bank. This will provide you with the information you need to ensure you get the best loan possible.
___________________________________________
Thank you for the great information from REIC.
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