7 Tips for Choosing a House Loan
Last updated: 23 Aug 2025
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These days, homebuyers like us can rest easy knowing that various financial companies are actively offering promotions and competing for market share. This means that customers like us can fully compare conditions and benefits. But the problem is, with so many options, it can be difficult to make a decision, right? So today, we've got 7 conditions you should know when applying for a home loan. Here are some tips to share.
Loan Purpose
If you're applying for a home loan, it's more beneficial and easier to get a loan from a financial institution than for commercial purposes.
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Borrower Qualifications
To get a smooth loan approval from a financial institution, you need to meet all the necessary qualifications, such as being of legal age, having a good financial history, and having a steady income.
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Collateral Location
If your location is in a community or a housing development with complete utilities and fire insurance, you can rest easy.
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Loan Limit
If you're building a house on your own land, financial institutions will lend up to 100% of the appraised value.
Buying a house with land or buying land to build a home, you can borrow up to 80% of the appraised value.
Additions and refinancing, you can borrow up to 80% of the appraised value.
You can discuss these matters directly with your financial institution.
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Repayment Terms
The installment amount must not exceed 40% of your income after deducting other debts. The repayment period is as follows:
Loan for a house with land, townhouse, or refinance, repayment period not exceeding 30 years.
Condominium, repayment period not exceeding 20 years.
Loan for purchasing vacant land, repayment period not exceeding 10 years.
Loan for purchasing a commercial building, repayment period not exceeding 15 years.
Loan for adding a home, repayment period not exceeding 10 years.
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Fees
Property appraisal fee: 1,500-2,500 baht.
Loan arrangement fee: 0-1% of the loan amount.
Early mortgage redemption fee If the loan is repaid before 3 years, the rate is 0-2%.
Fire insurance is approximately 2,000 baht per 1 million baht of the house value.
Registration fees, such as a mortgage fee, are 1% of the loan amount or mortgage registration value, but not exceeding 200,000 baht. Stamp duty is 0.05% of the loan amount, but not exceeding 10,000 baht.
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Interest Rates
Currently, interest rates can be divided into six types:
Floating Interest Rates: These fluctuate with market conditions.
Fixed interest rates throughout the loan term.
Short-term fixed interest rates initially, then float.
Short-term fixed interest rates with a step-up.
Fixed interest rates for a period of time, then adjust to a fixed rate periodically.
Floating interest rates within a specified range.
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Article source: REIC
Loan Purpose
If you're applying for a home loan, it's more beneficial and easier to get a loan from a financial institution than for commercial purposes.
___________________________________________
Borrower Qualifications
To get a smooth loan approval from a financial institution, you need to meet all the necessary qualifications, such as being of legal age, having a good financial history, and having a steady income.
___________________________________________
Collateral Location
If your location is in a community or a housing development with complete utilities and fire insurance, you can rest easy.
___________________________________________
Loan Limit
If you're building a house on your own land, financial institutions will lend up to 100% of the appraised value.
Buying a house with land or buying land to build a home, you can borrow up to 80% of the appraised value.
Additions and refinancing, you can borrow up to 80% of the appraised value.
You can discuss these matters directly with your financial institution.
___________________________________________
Repayment Terms
The installment amount must not exceed 40% of your income after deducting other debts. The repayment period is as follows:
Loan for a house with land, townhouse, or refinance, repayment period not exceeding 30 years.
Condominium, repayment period not exceeding 20 years.
Loan for purchasing vacant land, repayment period not exceeding 10 years.
Loan for purchasing a commercial building, repayment period not exceeding 15 years.
Loan for adding a home, repayment period not exceeding 10 years.
___________________________________________
Fees
Property appraisal fee: 1,500-2,500 baht.
Loan arrangement fee: 0-1% of the loan amount.
Early mortgage redemption fee If the loan is repaid before 3 years, the rate is 0-2%.
Fire insurance is approximately 2,000 baht per 1 million baht of the house value.
Registration fees, such as a mortgage fee, are 1% of the loan amount or mortgage registration value, but not exceeding 200,000 baht. Stamp duty is 0.05% of the loan amount, but not exceeding 10,000 baht.
___________________________________________
Interest Rates
Currently, interest rates can be divided into six types:
Floating Interest Rates: These fluctuate with market conditions.
Fixed interest rates throughout the loan term.
Short-term fixed interest rates initially, then float.
Short-term fixed interest rates with a step-up.
Fixed interest rates for a period of time, then adjust to a fixed rate periodically.
Floating interest rates within a specified range.
___________________________________________
Article source: REIC
