Can wife get a bank loan for house?

[cheeryble]

I have enough money in baht and don't want more.

 

We would like to build a house for about 1mbaht on a plot which her mum has chanot for.

I am willing to put up half in cash, but would prefer they sell an unpapered plot we bought in CR to provide the other half and concentrate on one place.

First wife doesn't want to sell....it's a great plot I can understand that.

Second as it's unpapered it could take a lot of selling.

 

It occurred to me:

Could they get a loan towards the house build of say 500k which I could pay off monthly.

 

I'm told Omsin bank is cheapest.....

 

Could someone with more knowledge tell me can it be done for a house build....how to present it.....and the likely mortgage rates and monthly repayments?

(can loans normally be paid off in a lump if we sold the CR plot.....and what sort of penalty?)

 

BE most grateful for any or all advice...

Edited February 23, 2018 by cheeryble

[Crossy]

Does your good lady work? If not that could be a barrier to getting finance.

 

We borrowed off SCB, initially a construction loan then converted into a mortgage once we had completed. Actually, the bank took so long to get everything sorted we converted to the mortgage immediately the construction loan was approved.

 

 

[Mattd]

I am assuming that the OP is not working? Which could be an issue.

The first mortgage that I had to purchase a property here was in my then wife's name and was for about 3m THB over 10 years, my ex. wife was not working and was fully supported by me, at that time I was working offshore (worldwide, not Thailand) for a foreign company and the loan was based solely on my income, I was the guarantor for the loan, this was in 1999 and with SCB.

Oh and I forgot, SCB insisted that we purchase life insurance for the duration of the loan for both myself and her, this cost over 200k THB in itself!

Edited February 24, 2018 by Mattd

[cheeryble]

Does your good lady work? If not that could be a barrier to getting finance.

 

We borrowed off SCB, initially a construction loan then converted into a mortgage once we had completed. Actually, the bank took so long to get everything sorted we converted to the mortgage immediately the construction loan was approved.

 

 

 

Hi Crossy

Sorry didn’t see yr reply

 

Well yes my wife has a degree and a long time job in a hospital.....only thing is her salary is not so great, basic about 17k I think. She does a lot of double shifts etc but rather than taking it in pay she takes quite a few days off which is rare and lucky in Thailand, like a 5-6 day holiday each month as well as other free days. Anyway say 17k.

 

I have assets here and actually pay income tax and have the receipts, but would prefer if my wife could do it independently.

 

Sounds like if it was a goer (and if wife allows!!) it may be something like yr arrangement for a construction loan first.

 

What sort of interest rate/any onerous extras?

 

Thanks Crossy

 

 

 

 

 

 

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[cheeryble]

I am assuming that the OP is not working? Which could be an issue.
The first mortgage that I had to purchase a property here was in my then wife's name and was for about 3m THB over 10 years, my ex. wife was not working and was fully supported by me, at that time I was working offshore (worldwide, not Thailand) for a foreign company and the loan was based solely on my income, I was the guarantor for the loan, this was in 1999 and with SCB.
Oh and I forgot, SCB insisted that we purchase life insurance for the duration of the loan for both myself and her, this cost over 200k THB in itself!

Hi Matt
As well as TRY to have it solely in wife's name I’d aim for repayments to be as minimal as possible.....did u CHOOSE to have only a ten year term which would raise repayments considerably?


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[Mattd]

27 minutes ago, cheeryble said:

 

Hi Matt
As well as TRY to have it solely in wife's name I’d aim for repayments to be as minimal as possible.....did u CHOOSE to have only a ten year term which would raise repayments considerably?


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Yes, it was a choice, as I wanted to pay it back as quickly as possible.

I hope that you will be able to do this in your wife's name independently, although in my experience the banks do tend to want a guarantor, especially if it is the first loan, or there isn't much loan history there.

Edited February 24, 2018 by Mattd

[Crossy]

We borrowed 2.5M over 15 years (the maximum SCB offered) based upon Madam's salary of 50k / month (she is my "Personal Assistant" so in reality it's part of my salary), I'm on as guarantor. We had to take out insurance (I think it was a one-off payment).

 

Exactly how the interest rates work out I have no real clue, Wifey pays each month.

[French mate]

 

Hi Cheeryle,

 

3 years ago i was in a similar situation, since you willing to paid half of the money cash you should stop at an SCB office.

As long i was  legaly married, they  was willing to borrow us half the money for a housse if i could pay cash the other half imediatly.
In this situation neither my wife or me was required to justify of a job or income,  the mortgage on the house already half payed was considered as a suffisant garanty by itself.

The proposition was made to us in the office of pattaya central.

 

[cheeryble]

Yes, it was a choice, as I wanted to pay it back as quickly as possible.
I hope that you will be able to do this in your wife's name independently, although in my experience the banks do tend to want a guarantor, especially if it is the first loan, or there isn't much loan history there.

Thanks
No loan history but 15+ years working in Ram hospitals Payou and CM, and of course she has Cards with no defaults.


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[Mattd]

42 minutes ago, Crossy said:

We had to take out insurance (I think it was a one-off payment).

In my case they gave us the choice, pay the insurance as a one off payment, or add the cost of the premiums to the loan to spread the cost.

[Mattd]

Just now, cheeryble said:

 

Thanks
No loan history but 15+ years working in Ram hospitals Payou and CM, and of course she has Cards with no defaults.


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As per @French mate it would be worth going to see if a large deposit will ease the guarantor side, it certainly did for me when I purchased an expensive car on finance, with a 40% deposit they were happy for me not to have a Thai guarantor.

[Crossy]

3 minutes ago, Mattd said:

In my case they gave us the choice, pay the insurance as a one off payment, or add the cost of the premiums to the loan to spread the cost.

Yeah, IIRC that's what we did, added to the loan.

[cheeryble]

 

Hi Cheeryle,

 

3 years ago i was in a similar situation, since you willing to paid half of the money cash you should stop at an SCB office.

 

As long i was  legaly married, they  was willing to borrow us half the money for a housse if i could pay cash the other half imediatly.

In this situation neither my wife or me was required to justify of a job or income,  the mortgage on the house already half payed was considered as a suffisant garanty by itself.

 

The proposition was made to us in the office of pattaya central.

 

 

 

We're not legally married but you’re right, with 50% down and knowledge about other assets and income......even if uncertified....the bank can’t lose

 

I’m told Omsin is a govt bank part of whose remit is to enable people to get housing.

 

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[fletchsmile]

Hi Cheeryble. Long time no hear.

 

Banks are generally reluctant to lend vs properties not built. Not surprising to hear Crossy's story and a good chance they were dragging their feet in this case, as they will much prefer a mortgage.

 

Your wife should be able to get a mortgage in her name on those sort of numbers. Key for Banks here is the ability to service debt, as often measured by their debt service ratio (DSR), rather than in the west where there may be a greater focus on asset ratios. REason: Foreclosure is a lengthy process in Thailand compared to say US. 

 

Bangkok Bank and other banks often have loan calculators on their websites these days, eg borrowing 500k @ 6% from 20 years would be around 3,600 baht a month and well within her debt servicing ability. (You should be able to get a promotion in the early years for a rate better than 6%, eg we got variable 2.7X% for 1st year, 3.7X% variable years 2-3 and just under 5% variable rate after that.

 

http://www.bangkokbank.com/BangkokBank/WebServices/Calculators/Pages/Loan Calculator.aspx

 

GSB/Omsin can be good on these smaller sort of amounts, as unlike commercial banks their programmes often have a social element to them, to encourage people to get housing. You may also find them easier than commercial banks to get them to lend vs unfinished properties for this very social reason.

 

We've had a mortgage twice in Thailand. Both times vs a finished property though.

1st time on a condo - I had a WP and was guarantor, my wife was a housewife and not working. We did 10 year loan

2nd time on our house. Neither of us working, although my wife is a director of a company. We did 30 year loan. In this case they gave what they called a "surrogate" loan, based on the assets she had at the bank and their ability to generate a notional income. She did need to have some link to a company though, but the directorship covered that. Even though they did not look at income from that, and only assessed based on her assets. I was not considered at all by the bank for their calculations, except maybe the fact they know we have a good relationship with them and hence they were more eager to support our needs.

 

You can be a guarantor even if not married. Being married strengthens your case, but is not essential. On the numbers you mention though, she probably wouldn't need you.

 

There are often penalties if you pay off early. They often link to promotional terms. In our case now if we pay off within 3 years.

You can significantly overpay though. On our first loan, we significantly overpaid in the first 3 years, so running out the 3 year term became somewhat of a technicality. We paid off in just over 3 years, once the promotional rates had finished. Reasonable chance we might do similar this time too. 

i.e. pay off large lump sums early, and just leave enough repayments to last the 3 years can be a decent strategy to deal with this if you want to pay early

 

Your main issue will be the property not being built. GSB is well worth checking because of the social lending element. May be possible at other banks, but will be more difficult than on a finished property

 

GSB is often not the cheapest on higher amounts which are more commercial and without a social element to the programme. Where they come out cheaper though is often if there is some social element to the lending, eg government asks them to make available X billion of loans for 1st time buyers on smaller amounts, say up to THB 1million to get them to help people start out.

Edited February 24, 2018 by fletchsmile

[MaeJoMTB]

6 hours ago, cheeryble said:

Well yes my wife has a degree and a long time job in a hospital.....only thing is her salary is not so great, basic about 17k I think. She does a lot of double shifts etc but rather than taking it in pay she takes quite a few days off which is rare and lucky in Thailand, like a 5-6 day holiday each month as well as other free days. Anyway say 17k.

25k/month will allow her a 1M5 home loan with SCB, rate is 6.12% this month.

(Assuming the rules haven't changed since 2014 when my misses did it)

 

They has ZERO interest in any other assets or loan history she had, last 6 months wage slips and a letter from her employer. No guarantor required, up to 95% loan (But this was a property being built by KKN).

Edited February 24, 2018 by MaeJoMTB

[cheeryble]

19 hours ago, fletchsmile said:

Hi Cheeryble. Long time no hear.

 

Banks are generally reluctant to lend vs properties not built. Not surprising to hear Crossy's story and a good chance they were dragging their feet in this case, as they will much prefer a mortgage.

 

Your wife should be able to get a mortgage in her name on those sort of numbers. Key for Banks here is the ability to service debt, as often measured by their debt service ratio (DSR), rather than in the west where there may be a greater focus on asset ratios. REason: Foreclosure is a lengthy process in Thailand compared to say US. 

 

Bangkok Bank and other banks often have loan calculators on their websites these days, eg borrowing 500k @ 6% from 20 years would be around 3,600 baht a month and well within her debt servicing ability. (You should be able to get a promotion in the early years for a rate better than 6%, eg we got variable 2.7X% for 1st year, 3.7X% variable years 2-3 and just under 5% variable rate after that.

 

http://www.bangkokbank.com/BangkokBank/WebServices/Calculators/Pages/Loan Calculator.aspx

 

GSB/Omsin can be good on these smaller sort of amounts, as unlike commercial banks their programmes often have a social element to them, to encourage people to get housing. You may also find them easier than commercial banks to get them to lend vs unfinished properties for this very social reason.

 

We've had a mortgage twice in Thailand. Both times vs a finished property though.

1st time on a condo - I had a WP and was guarantor, my wife was a housewife and not working. We did 10 year loan

2nd time on our house. Neither of us working, although my wife is a director of a company. We did 30 year loan. In this case they gave what they called a "surrogate" loan, based on the assets she had at the bank and their ability to generate a notional income. She did need to have some link to a company though, but the directorship covered that. Even though they did not look at income from that, and only assessed based on her assets. I was not considered at all by the bank for their calculations, except maybe the fact they know we have a good relationship with them and hence they were more eager to support our needs.

 

You can be a guarantor even if not married. Being married strengthens your case, but is not essential. On the numbers you mention though, she probably wouldn't need you.

 

There are often penalties if you pay off early. They often link to promotional terms. In our case now if we pay off within 3 years.

You can significantly overpay though. On our first loan, we significantly overpaid in the first 3 years, so running out the 3 year term became somewhat of a technicality. We paid off in just over 3 years, once the promotional rates had finished. Reasonable chance we might do similar this time too. 

i.e. pay off large lump sums early, and just leave enough repayments to last the 3 years can be a decent strategy to deal with this if you want to pay early

 

Your main issue will be the property not being built. GSB is well worth checking because of the social lending element. May be possible at other banks, but will be more difficult than on a finished property

 

GSB is often not the cheapest on higher amounts which are more commercial and without a social element to the programme. Where they come out cheaper though is often if there is some social element to the lending, eg government asks them to make available X billion of loans for 1st time buyers on smaller amounts, say up to THB 1million to get them to help people start out.

Hey Fletch yeah long time no parley....

 

thanks for all the xlnt info.Running right now but have absorbed.

[cheeryble]

18 hours ago, MaeJoMTB said:

25k/month will allow her a 1M5 home loan with SCB, rate is 6.12% this month.

(Assuming the rules haven't changed since 2014 when my misses did it)

 

They has ZERO interest in any other assets or loan history she had, last 6 months wage slips and a letter from her employer. No guarantor required, up to 95% loan (But this was a property being built by KKN).

Likewise, thakyou for the specific info