Salary-wise, how much can you borrow? This is a question that many people who aspire to own a house are very curious about. Today, we will explain the process of applying for a home loan and how to calculate the maximum amount you can borrow, including a detailed method to adjust it to your income.
Want to know how much you can get for a home loan?
Owning a house is a dream for many people, whether it’s building a house or buying one. However, houses are valuable assets with high prices, so it’s not easy to buy one with cash. As a result, many people turn to banks for home loans instead of using cash to buy a house. Applying for a loan is a suitable process for those who want to conserve cash for emergencies.
In this loan application process, many people often have one question: What is the maximum home loan amount that they can apply for? This question will be answered in this article!
How can the maximum home loan amount be calculated?
The calculation of the maximum home loan amount considers three main factors: income, expenses, and the applicant’s debt repayment history. Here’s more detail on each of these factors:
Assessing your income:
To calculate the maximum home loan amount, you need to know your monthly income, such as your salary. Banks typically set the monthly repayment rate at no more than 40% of your regular income.
For example, if you have a monthly income of 20,000 Baht, you can repay a maximum of 8,000 Baht per month.
If you’re looking for a high-value home loan, calculating your monthly repayments and income is crucial.
Assessing your debts and expenses:
Banks calculate the maximum home loan amount by considering your income and expenses. If you have other debts that require monthly payments, your ability to repay monthly installments will decrease in proportion to the amount of those debts.
For example, if you earn 20,000 Baht per month but have to pay 4,000 Baht in monthly debt payments, you will have a net income of 16,000 Baht. This means you can repay a maximum of 40% of 16,000 Baht, which is 6,400 Baht per month.
Checking your abnormal debt repayment history:
Your debt repayment history plays a crucial role in loan approval. If you have an abnormal or irregular debt repayment history, it may reduce your maximum home loan amount or make loan approval more difficult.
For individuals with debt repayment issues or those who may be on a credit blacklist, getting a home loan may be more challenging. However, it’s not impossible. If you’ve resolved your credit issues and have a stable credit status for 1-3 years, you can still apply for a home loan.
How to calculate the maximum home loan amount from the Government Housing Bank:
Calculating the maximum home loan amount is relatively straightforward. You can multiply your monthly repayment capacity by 150.
For example, if you have a monthly income of 30,000 Baht, your maximum loan amount would be 30,000 x 150 = 4,500,000 Baht.
In summary, this article helps you understand the process of applying for a home loan and how to calculate the maximum home loan amount that you can apply for. This calculation considers your income, expenses, and debt repayment history to estimate the maximum loan amount possible.
Source: Government Housing Bank (GH Bank) Blog
For Thai people living abroad, with this income, how much can you borrow?
For Thai people living abroad, they can also apply for home loans or condominium loans through the “Home Loan for Thai People Abroad” project. This project opens opportunities for Thai nationals living abroad to use their income from abroad to apply for home loans in Thailand. If you are interested and want to know how much you can borrow, we are ready to provide a pre-approval result to prepare you before you apply. If you’re interested, you can inquire about more details.
An example of an approved loan amount for Thai people abroad who participate in the “Home Loan for Thai People Abroad” project is provided.
