As property values continue to rise, buying a home serves both as an investment and a place to live. This is especially true for new workers with stable incomes who are starting to look for their first significant asset. However, before deciding to purchase a home or seeking a loan to make that dream a reality, one crucial factor to consider is your own income, which plays a vital role in applying for loans from various banks and in making payments over the long term.

Therefore, allocating your income is extremely important, and financial institutions require this as part of the documentation for loans, alongside other documents. If you want to secure a home loan and manage your payments effectively, what should you consider? Let's explore some helpful advice.

1. Understand How to Allocate Your Income

In addition to having a regular income, there are several factors that must be used as evidence to confirm your income. You should have a monthly salary of at least 15,000 baht (depending on each bank's conditions). If you are self-employed, you should deposit money into your bank account consistently for at least 6-12 months before applying for a loan and keep a record of your income and expenses to use as income documentation.

Moreover, banks will consider other factors such as debt obligations, credit history, and other income sources beyond your regular income. Therefore, if you want to successfully secure a home loan, managing your bank accounts and your income should be your top priority.

Dining room, kitchen, white kitchen counter

2. Expenses During the Loan Application

When purchasing a home, the buyer must have a down payment of at least 10-20% of the home's purchase price. For example, if the home costs 2,000,000 baht, you should have a down payment of 200,000-400,000 baht. Although banks may offer promotions for loans up to nearly 100%, a higher loan amount will incur higher interest rates, leading to increased monthly payments. Additionally, there are other expenses to consider:

  • Bank-related expenses, such as property appraisal fees, stamp duty at 0.05% of the loan amount, and fire insurance premiums (depending on the home's price).
  • Land department fees, such as a mortgage registration fee of 1% of the loan amount and a transfer fee of 2% of the appraised value.

3. Managing Monthly Payments

One long-term concern for homebuyers is the monthly payment, which can last up to 30 years. There are several strategies to help manage these payments comfortably:

Before applying for a loan: Practice making home payments before actually buying a home by setting aside half of your monthly income for future mortgage payments. Subtract other expenses to see if it is sufficient for your daily living. Avoid letting the home loan add too much financial burden.

During the payment period: If your home loan application is successful, the bank will offer a special interest rate for the first 2-3 years based on current promotions. However, starting in the fourth year, the bank will charge the standard interest rate according to their terms. Refinancing your home loan is another way to reduce the burden of interest payments, preventing you from bearing the increased payment amounts after the promotional period ends. Another option is to make extra payments beyond the required monthly amount, which will reduce the principal and shorten the loan term.

4. Choose Bank Campaigns That Alleviate Financial Burden

Consider selecting loan campaigns that suit your needs, which can make home payments more manageable. For instance, you might receive special interest rates, discounts from retailers, or additional services that help reduce other costs associated with buying a home, such as furniture and appliances.

Super Value Home Loan from KBank

KBank's Super Value Home Loan

This loan meets three needs. Not only does it offer a special interest rate of 0% for the first three months, but it also provides various privileges. Owning a home involves more than just monthly mortgage payments; it includes purchasing furniture and home decor, moving services, and cleaning services. The Super Value Home Loan promotion can fulfill all these needs with special benefits:

Benefit 1: Special interest rate of 0% for 3 months

This gives borrowers more time to save and manage their finances during the initial period of home payments.

Package 1: For corporate employees

Package 2: For entrepreneurs

Entrepreneurs

Current MRR interest rate = 7.12% (as of May 16, 2017)

Note:

  • The Minimum Retail Rate (MRR) may change based on the bank's financial conditions, and the bank will announce changes periodically, posting them at its branches and on its website.
  • The Effective Interest Rate is calculated based on a loan amount of 1 million baht with a contract term of 20 years.

Benefit 2: For every loan amount of 1 million baht, you will receive 10,000 KBank Reward Points, up to a maximum of 100,000 points.

For those applying for a home loan with KBank and who have a KBank credit card, this promotion is very beneficial. For example, if you take a loan for a 5 million baht home, you will receive 50,000 points on your credit card, which can be used as cash or redeemed for discounts on purchases. You can also use the points to buy exclusive items in the K PLUS Market application. Therefore, if you plan to apply for a home loan with KBank and do not have a credit card, apply now, or if you already have a KBank credit card, you can proceed with your loan application.

Benefit 3: Receive special discounts on furniture from Index Living Mall of up to 20,000 baht, appliances from Power One, and special pricing for Index Home Service for home lovers.

This helps save costs related to moving and decorating your home beautifully according to your preferences.

Thank you for the information from www.baanlaesuan.com