6 Tips for Preparing to Get a Home Loan (Salaryman edition)

Start by listing your dream housing projects, condos, and townhomes within a specified budget. Ideally, the price of the house/apartment or loan amount should not exceed 100 times your salary, however, this depends on your financial capability and savings.

It is necessary to ensure you have a stable income by maintaining a consistent payroll account. Office workers who have regular monthly income deposits, allowing them to plan and allocate funds for saving to buy a house. You should have at least 1 year of working experience and at least 3 month at your current company, as it reflects your loan repayment capability.

This is a crucial step in saving money by reducing unnecessary expenses. The goal is to keep the monthly debt burden/monthly expense below 35% of your income for 6 months. This is a key factor banks consider when approving home loans and loan amount, as it reflects your loan repayment capability.

This tip is suitable for salaried individuals who love using credit cards and installment payment. It is essential to always meet payment deadlines and avoid overdue debts. A good credit history is crucial, as A poor credit history can negatively impact the bank's decision on your loan approval and amount.

This step is to save money seriously to make the dream of owning a house/apartment a reality. This amount of money is for the down payment, which normally the bank will provide around 80% of the collateral appraisal value.

This savings will go towards the down payment, with banks typically providing up to 80% of the collateral value. A larger down payment can save you more on interest. Also, reserve funds for processing fees like appraisal fee, ownership transferring fee, mortgage registration, and decoration/furniture costs.

Learn more about ‘What Expenses to Prepare before Home Loan?’ : Click

The loan amount is determined by the collateral value. Bank usually provide loan amount for 80% of collateral value. The Collateral can be your current home/apartment with the title deed or the home/apartment you are buying.

For employees with the same salary, the better collateral and a good debt repayment history can increase your chance of securing a larger loan amount.