“Is it possible to have a home over 3 million baht with 30,000 baht salary? If so, how much will be the monthly installment?”
It’s a common question among salary earners when it comes to buying a home: “Will I run out of the savings in the future If I choose to pay in cash all at once? And If I resolve to borrow a mortgage from banks, how much would they lend?” In this article, you’ll find the answer.
- With this amount of salary, what will be my maximum monthly installment?
“The maximum monthly installment must not exceed 40% of the borrower’s salary.”
Siam Commercial Bank uses this basis when determining a borrower’s maximum monthly installment. That is the number should not exceed 40% of the borrower’s salary.
Example: How much will be the maximum monthly installment for a borrower with 30,000 baht salary?
30,000 x 40% = 12,000 baht
If the borrower earns 30,000 baht every month, he then can pay up to 12,000 baht as a monthly installment.In the meantime, if the borrower owes a debt, for example a car loan requiring 6,000 baht per month, then the maximum monthly installment for the mortgage will be deducted by this number, which in this case the borrower’s maximum monthly installment will reduce to 6,000 baht (12,000 – 6,000) instead.
- With this amount of salary, what will be my maximum loan amount?
After we knew the maximum monthly installment, we then use this number to calculate the maximum loan amount.
“Installment : loan amount = 7,000 baht : 1,000,000 baht”
The maximum loan amount can be calculated from the borrower’s monthly installment using the ratio 7,000 baht installment per 1,000,000 baht loan amount.
Example: With 12,000 baht monthly installment, what will be the borrower’s maximum loan amount?
Maximum loan amount = (1,000,000 x 12,000) ÷ 7,000 = 1,885,700 baht
A borrower who can afford 12,000 baht monthly installment can request for a maximum loan at 1,885,700 baht.
These methods will preliminarily help borrowers assess their borrowing capacity. However, there are other factors such as the collateral which can alter the numbers. Each bank also has a different loan amount to asset value ratio. For a more precise numbers, please ask your bank accordingly.
For those who don’t own much saving or long-term income record and feel uncertain about mortgage qualification, you can try our mortgage calculator beforehand, or if you’re an investor, please read more insights about Bangkok property market and home tips, check out DDproperty Property Index Report , DDproperty Property Market Outlook Report and Property guides