3 steps to comfortably pay off your home loan
Last updated: 6 Aug 2025
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When considering a home loan, borrowers must prepare well both before and during the loan repayment process. If they make payments when they're not ready, they could face disruptions during the repayment process, or, in the worst case, end up unable to pay the loan and having the house foreclosed. Don't worry, though! The following tips will help borrowers assess their own readiness to ensure they can afford the payments before deciding to purchase their own home.
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Step 1: Check Your Readiness Before Taking Out a Home Loan
1. Income Stability
The first question borrowers must ask themselves before deciding to take out a home loan is: Is their job stable? What is the risk of losing income? If they have a stable job, have been employed for many years, have career advancement, and are likely to earn a higher income, it's best to consider taking out a home loan.
2. Debt and Expenses
Debt and expenses are a significant burden on borrowers' ability to repay their home loans. Therefore, borrowers should minimize these expenses before taking out a home loan. If borrowers are debt-free, they will have savings and a good financial history, making it easier to secure a home loan than those with debt.
3. Repayment Ability
Borrowers can check their own home loan affordability by using their income to calculate the home loan amount using a home loan calculator. This will help them determine how much they can afford per month and what their ideal home price is, so they can choose a home that best suits their income.
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Step 2: Prepare before applying for a home loan and making payments
1. Good Financial Health
Before applying for a home loan with a bank, borrowers must be financially disciplined by building good credit. This includes paying credit cards on time and in full, not having a history of defaulting on loans, not being listed on the credit bureau, or being sued for bankruptcy, or not having large outstanding debts, such as car loans, that could hinder their ability to pay their home loan.
2. Have Savings and a Down Payment
Borrowers should have a minimum down payment of 10% of the purchase price (although some down payments are not required due to loan-to-value (LTV) regulations). This does not include savings for home renovations and other expenses on the transfer date, which may require the borrower to pay some of the transfer fees themselves. and mortgage registration fees.
3. Adequate Home Loans
Repaying a home loan takes years, so borrowers must ensure they have sufficient income to cover the monthly payments. A home loan can be roughly calculated at 7,000 baht per million baht. However, the total home loan and debt must not exceed 40% of the borrower's income, which is the debt ceiling most banks accept.
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Step 3: During the Home Loan Process
1. Maintain Good Financial Discipline
Even after the loan is approved and the home loan is being paid off, financial discipline is still essential for borrowers. This includes making monthly home loan payments on time and avoiding additional debt. If possible, borrowers should also have savings to cover at least 3-6 months of income loss.
2. Try to pay off the home loan faster.
Borrowers can use various techniques to pay off their home loan faster, such as refinancing the home with the original bank or refinancing with another bank to lower the interest rate. They can also use overpayments to reduce the principal amount. These methods can significantly reduce the overall interest burden.
3. Find a solution when unable to pay the mortgage.
If a borrower experiences unforeseen financial difficulties, there are still ways to alleviate their mortgage debt, such as finding alternative sources of income. However, if additional income isn't a viable option, refinancing to extend the mortgage term or seeking a debt settlement with the bank may be a viable solution to improve the situation.
___________________________________________
If borrowers can prepare and follow all of these recommendations, especially choosing a home that fits their income and maintaining good financial discipline, they will be able to comfortably pay off their mortgage quickly and reduce the chances of being unable to pay the mortgage and having their home foreclosed.
___________________________________________
Thank you for the great information from DD Property.
___________________________________________
Step 1: Check Your Readiness Before Taking Out a Home Loan
1. Income Stability
The first question borrowers must ask themselves before deciding to take out a home loan is: Is their job stable? What is the risk of losing income? If they have a stable job, have been employed for many years, have career advancement, and are likely to earn a higher income, it's best to consider taking out a home loan.
2. Debt and Expenses
Debt and expenses are a significant burden on borrowers' ability to repay their home loans. Therefore, borrowers should minimize these expenses before taking out a home loan. If borrowers are debt-free, they will have savings and a good financial history, making it easier to secure a home loan than those with debt.
3. Repayment Ability
Borrowers can check their own home loan affordability by using their income to calculate the home loan amount using a home loan calculator. This will help them determine how much they can afford per month and what their ideal home price is, so they can choose a home that best suits their income.
___________________________________________
Step 2: Prepare before applying for a home loan and making payments
1. Good Financial Health
Before applying for a home loan with a bank, borrowers must be financially disciplined by building good credit. This includes paying credit cards on time and in full, not having a history of defaulting on loans, not being listed on the credit bureau, or being sued for bankruptcy, or not having large outstanding debts, such as car loans, that could hinder their ability to pay their home loan.
2. Have Savings and a Down Payment
Borrowers should have a minimum down payment of 10% of the purchase price (although some down payments are not required due to loan-to-value (LTV) regulations). This does not include savings for home renovations and other expenses on the transfer date, which may require the borrower to pay some of the transfer fees themselves. and mortgage registration fees.
3. Adequate Home Loans
Repaying a home loan takes years, so borrowers must ensure they have sufficient income to cover the monthly payments. A home loan can be roughly calculated at 7,000 baht per million baht. However, the total home loan and debt must not exceed 40% of the borrower's income, which is the debt ceiling most banks accept.
___________________________________________
Step 3: During the Home Loan Process
1. Maintain Good Financial Discipline
Even after the loan is approved and the home loan is being paid off, financial discipline is still essential for borrowers. This includes making monthly home loan payments on time and avoiding additional debt. If possible, borrowers should also have savings to cover at least 3-6 months of income loss.
2. Try to pay off the home loan faster.
Borrowers can use various techniques to pay off their home loan faster, such as refinancing the home with the original bank or refinancing with another bank to lower the interest rate. They can also use overpayments to reduce the principal amount. These methods can significantly reduce the overall interest burden.
3. Find a solution when unable to pay the mortgage.
If a borrower experiences unforeseen financial difficulties, there are still ways to alleviate their mortgage debt, such as finding alternative sources of income. However, if additional income isn't a viable option, refinancing to extend the mortgage term or seeking a debt settlement with the bank may be a viable solution to improve the situation.
___________________________________________
If borrowers can prepare and follow all of these recommendations, especially choosing a home that fits their income and maintaining good financial discipline, they will be able to comfortably pay off their mortgage quickly and reduce the chances of being unable to pay the mortgage and having their home foreclosed.
___________________________________________
Thank you for the great information from DD Property.
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