Can Farangs Get Mortgages ?

[007cableguy]

This maybe a silly question ,but can a farang get a mortgage ?.

i'm looking at buying and renovating some apartments that have been offered to me .

any advise welcome .

[eljeque]

Farangs can get mortgages if they have :

Work permits

or

wives with good paying jobs or businesses

or

good pensions and they have been here with a good visa for many years

or

good paying jobs and they fly down to Singapore to show all ofth eir assets and tax payments and pay 5,000 SImgapore dollars fort he loan from Bangkok Bank -Singapore.

or..... anything anyone else can add?

Oh, I know of two outfits (developers) in Pattaya who are offering loans of five years to buyers of their properties. The rates are 18% and 20.3% per year!

[thaigene2]

Farangs can get mortgages if they have :

Work permits

or

wives with good paying jobs or businesses

or

good pensions and they have been here with a good visa for many years

or

good paying jobs and they fly down to Singapore to show all ofth eir assets and tax payments and pay 5,000 SImgapore dollars fort he loan from Bangkok Bank -Singapore.

or..... anything anyone else can add?

Oh, I know of two outfits (developers) in Pattaya who are offering loans of five years to buyers of their properties. The rates are 18% and 20.3% per year!

My understanding is that farangs do not have access to thai-baht loans anymore (and were never supposed to - but some banks did this for a while - no longer).

Bangkok Bank in Singapore had stopped this as well I heard.

The only one above I believe is true is the wife with the good paying job - who can get a loan in her own name - not yours - to buy a house in her name only - not yours.

[Prakanong]

My colleague here in Singapore his Chinese Bank was offering 80% loans but that may have been on Condo's only.

[joe1912]

This maybe a silly question ,but can a farang get a mortgage ?.

i'm looking at buying and renovating some apartments that have been offered to me .

any advise welcome .

Have you looked into getting a mortgage from on international / offshore bank?

I know HSBC International offer mortgages in a number of currencies but dont know the criteria for qualifying, other international banks must do similar mortgages.

[thaigene2]

I reasearched this quite a bit. I don't pretend to have all the answers, but in summary it came down to this:

The Thai banks won't lend to foreigners anymore because:

a) by law, you're supposed to bring all the cash into thecountry to buy a condo (100% - provable by a foreign transaction certificate from the thai bank), and

since you're not eligible to "own" a Thai house/land, the bank would have nothing in your name (i.e. title deed) against which to secure their mortgage.

Last I checked some banks would still offer an 8 year mortgage at higher rates to your wife with 50% down payment - even if she didn't qualify for a property purchase in her name only of course - as long as you could guarantee the loan, but I'll bet this is now unlikely too given the new visa enforcements (because the bank can't be sure you'll still be around year-on-year and are thus a risky guarantor)

The best option seems to be to use a property abroad as a gaurantee. Evidently this means the loan needs to be from a lender in the same country so they can place a lien against that property. Downside is you are liable to currency fluctuations as your loan is your home currency - not baht where your new place is located.

Edited February 9, 2007 by thaigene2

[quiksilva]

This morning I became guarantor for my Thai wife on her mortage for our (well, her) new house (95% over 27 years, from UOB).

Strictly speaking though TG is correct, property financing for farangs here is difficult to say the least.

[thaigene2]

This morning I became guarantor for my Thai wife on her mortage for our (well, her) new house (95% over 27 years, from UOB).

Strictly speaking though TG is correct, property financing for farangs here is difficult to say the least.

Quiksilva - do you have PR? Many are interested in this. - Alternatively fo you perhaps have enough cash locked-in to thai securities to prevent you 'bolting'? Something that ensures they have the cash within the 8 years?

[thergothon]

This morning I became guarantor for my Thai wife on her mortage for our (well, her) new house (95% over 27 years, from UOB).

Strictly speaking though TG is correct, property financing for farangs here is difficult to say the least.

Quiksilva - do you have PR? Many are interested in this. - Alternatively fo you perhaps have enough cash locked-in to thai securities to prevent you 'bolting'? Something that ensures they have the cash within the 8 years?

I am also very interested Quiksilva what paperwork you needed to get this done? i got the land but not the money to built the house yet and this would speed it up.

any other suggestions how to get a loan would be appreciated also.

got enough salary coming in but never put anything away, got married 2 years ago and now we are having a baby in 3 months so any help to get a loan to built our house would be helpfull!

[quiksilva]

Nope no PR, yet, just a work permit for >3 years, no cash locked away either.

They asked to see my salary slips for 6 months, bank statements, letters from our employers, and copies of our marriage certificate.

It also helped that my wife is earning a decent salary (but its not that high so that she could afford the mortgage without me, so my remuneration was definitely taken into consideration.

We were told that it helped that we were buying from a reputable developer (Sansiri). So I'm not sure whether you could get a loan for construction purposes...

I hope this helps.

BTW Our house transfers on Thursday

Edited February 13, 2007 by quiksilva

[Bobcat]

Foreigners with PR are able to obtain a mortgage. I obtained one from HSBC last month.

[LoveDaBlues]

This morning I became guarantor for my Thai wife on her mortage for our (well, her) new house (95% over 27 years, from UOB).

Strictly speaking though TG is correct, property financing for farangs here is difficult to say the least.

Which bank is UOB?

Also, this loan is for an existing house you're buying, correct? (NOT one you're having built).

[manjara]

We bought a condo in my wife's name, with a 65% mortgage, also in her name and me as the guarantor.

I had to have a Work Permit and we had to be married. I also had to show 6 months bank statements and have a letter from my employer, stating what my monthly earnings were. My wife had minimal earnings (from Amway)

The mortgage was about 3 times my monthly wage (at the time, I was on assignment from UK and earning a lot!), repayable over 10 years.

That was 3 years ago, and now they call my wife all the time asking her if she wants to borrow more!

I think it is unlikely that you will get very high multiples of your wage, unless you can show a good record of repayment in Thailand for smaller loans.

[trajan]

Foreigners with PR are able to obtain a mortgage. I obtained one from HSBC last month.

I assume you mean mortgage for a condo purchase (not land purchase)?

Also, I understand that HSBC these days limits their mortgage loans to foreigners with PR to a term of 7 years and 70% of appraised value (or selling price whichever is lower)...is that right?

thanks

[samran]

Foreigners with PR are able to obtain a mortgage. I obtained one from HSBC last month.

I assume you mean mortgage for a condo purchase (not land purchase)?

Also, I understand that HSBC these days limits their mortgage loans to foreigners with PR to a term of 7 years and 70% of appraised value (or selling price whichever is lower)...is that right?

thanks

I know a PR with at least a 15 year loan. The 70% I think really depends on the type of condo....

[skippybangkok]

I reasearched this quite a bit. I don't pretend to have all the answers, but in summary it came down to this:

The Thai banks won't lend to foreigners anymore because:

a) by law, you're supposed to bring all the cash into thecountry to buy a condo (100% - provable by a foreign transaction certificate from the thai bank), and

not correct - if you can demostrate you have paid ur taxes on money earnt here, you can use that. I live in the proof that its possible, not many banks / people know though

[quiksilva]

This morning I became guarantor for my Thai wife on her mortage for our (well, her) new house (95% over 27 years, from UOB).

Strictly speaking though TG is correct, property financing for farangs here is difficult to say the least.

Which bank is UOB?

Also, this loan is for an existing house you're buying, correct? (NOT one you're having built).

UOB = United Overseas Bank, a Singaporean outfit which took over Bank of Asia.

The loan was for a new house built by Sansiri, transferred yesterday

[eljeque]

I know of a couple of different developers in Pattaya who will lend at 12% for 5 years is that is long enough for you. NO lending fees and everyone qualifies with a 20% down payment.

Please PM me for more details.

[carrsaie]

I know of a couple of different developers in Pattaya who will lend at 12% for 5 years is that is long enough for you. NO lending fees and everyone qualifies with a 20% down payment.

Please PM me for more details.

Hello there, im in pattaya now and im thinking of getting a condo, but at the moment dont have the full amount, so im looking for a loan, so if possible can you give me the cocntacts of these developers??

Thanks alot

[TGuest]

Farangs can get mortgages if they have :

Work permits

or

wives with good paying jobs or businesses

or

good pensions and they have been here with a good visa for many years

or

good paying jobs and they fly down to Singapore to show all ofth eir assets and tax payments and pay 5,000 SImgapore dollars fort he loan from Bangkok Bank -Singapore.

or..... anything anyone else can add?

Oh, I know of two outfits (developers) in Pattaya who are offering loans of five years to buyers of their properties. The rates are 18% and 20.3% per year!

My understanding is that farangs do not have access to thai-baht loans anymore (and were never supposed to - but some banks did this for a while - no longer).

Bangkok Bank in Singapore had stopped this as well I heard.

The only one above I believe is true is the wife with the good paying job - who can get a loan in her own name - not yours - to buy a house in her name only - not yours.

I know of a company who offer Thai Baht loans to expats in Thailand to purchase land and property, The lending criteria is fairly flexible and they target proffessional expats working in Thailand.

[bassmaster50]

I just went to Bangkok Bank and they told me they would approve 10 year mortgage financing 70 per cent of cost of existing house.I am living on pension and have retirement visa,and at this time am unmarried but am planning to get married which I believe is a prerequisite for mortgage.I believe Tisco Finance Company will give farangs mortgages also.

[ThaiLawOnline]

In the last 3 months, we made a survey and some verification in Nakhorn Ratchasima about that question.

It’s was not for condominiums but for a property, house/land. Condos are rare are here. We went to at least 3 institutions, Bangkok Bank, UOB Bank and Kasikorn. I am not saying that this information is accurate 100%, but this is EXACTLY what these 3 institutions told us here.

You will have a separation like " ====================== " in between each different institutions.

From Bangkok Bank, the information is directly on their website and they confirmed it verbally. Go into the section frequently asked questions by foreigners and you will find:

=================================================

BANGKOK BANK

“Can foreigners apply for a home loan to purchase property in Thailand?

Bangkok Bank provides home loans to non-residents that can be used to purchase freehold

condominium or apartment properties without a title deed.

In general, Thai law prohibits foreigners from owning land in Thailand.

This means as a foreigner you can only purchase a condominium or an apartment without a title deed. The only restriction on purchasing a condominium is that the percentage of units sold to foreigners cannot exceed forty nine percent (49%) of the total number of units in the condominium block.

Our team understands the regulatory requirements that apply and can help you with

advice and finance for your property purchase.

The loans are provided via our Singapore and Hong Kong branches, but you can also inquire about them at a number of branches in Bangkok.

What are the lending criteria for a non-resident home loan?

Bangkok Bank offers a range of home loan options, tailored to meet your needs. We offer

flexible lending and attractively low interest rates.

o You can borrow up to 70% of a property’s appraised value or up to US$800,000

o Loans can be denominated in one of four currencies – US Dollars, Singaporean Dollars, Euros and Japanese Yen

o Repayments for up to 20 years

o Competitive interest rate options available

o Loan approval within two weeks of application

o

Application fees include: Appraisal fee - Bt 2,500 Management fee - 0.5% of total loan, and Balance clear - 3% of total loan

You will need to complete a mortgage application form that you can pick up from the branches listed above.

We also require the following documents:

1. Completed Mortgage Loan Application Form.

2. Copy of I.D. card (front and back) / passport (essential pages).

3. Signed copy of your Sales & Purchase Agreement or Reserve Agreement.

4. A reference letter from your existing bank, addressed to Bangkok Bank Public Co Ltd confirming your relationship with the bank, type of account you hold and the value of any loans or deposits you hold with the bank.

5. Bank statements for the last six months.

6. A Credit Bureau Report from your country of residence.

7. For employees: A letter from your employer, addressed to Bangkok Bank Public Co Ltd confirming your employment position, the number of years you have been employed and your salary, your last two years’ of Income Tax Returns and computerized pay-slips for the last six months.

8. For Self-Employed individuals: The Balance Sheet Profit & Loss Statements from the last two years, and the last two years’ Income Tax Returns

9. Others documents upon request Note:

o

Approval of a loan is subject to the evaluation of an applicant’s financial standing, repayment ability and at the bank’s discretion.

o

The terms listed above are subject to change without prior notice.

As a foreigner, can I get a home loan through my spouse who is a resident of Thailand?

If your spouse is a resident of Thailand but does not have sufficient funds for a home loan, you can be the guarantor on

the loan. However, as a guarantor your name will not appear on the title deed of the house but you will be liable if repayments are not made.

=========================================================

FROM KASIKORN BANK

They told us, again in Korat, that it would be very difficult for foreigners to get a mortgage (loan). But they offer Housing Loans for Thai people. Key Features Term loans with low interest rates. Various interest packages are available and the installment term can be up to 30 years. Financing for purchases of homes and land, townhouses, commercial buildings, condominium units and vacant lands including home construction and remodeling. Refinancing of

loans with the home as collateral is also available. Term of Loan Up to 30 years

Eligibility

1. Thai Nationality

2. At least 21 years old

o For fixed income earners, their age when added to the duration of the loan must not exceed 60 years old.

o For self-employed persons, their age plus the duration of the loan must not exceed 65 years old.

3. Years of work:

For fixed-income earners, they must have worked at their present workplace for at least two years. If less than two years, they must show the record of work in the last two years.

o For self-employed persons, they must have been in business for at least two years.

4. The primary borrower must earn THB10,000 or higher per month.

-If your income is more than THB50,000 per month, the monthly installment payment must not exceed 50 percent of your monthly income.

-If your income is less than THB50,000 per month, the monthly installment payment must not exceed 40 percent of your monthly income.

5. The number of co-borrowers must not exceed two, and all of them must be relatives.

===================================================

FROM UOB BANK

We also checked in Korat. They told us it would be extremely difficult for foreigners and normally requires Thai nationality. The borrower must have incomes and stay in Thailand. They will normally need a guarantor for a foreigner on top of Thai nationality.If he/she has Thai spouse, the spouse must have at least incomes three times higher than installment repayment, and a Thai bank account, and working for at less 3 years.

Documents required will be:

- ID Card

- House registration certificate

- Confirmation of income or salary

- copies of bank statement for the previous six months

- Marriage

certificate (if any) of applicant and spouse.

- Copies of land title deeds, purchasing contract

======================================

I hope this information will help some people. Sorry if the formatting is not good, it comes from several documents that I had...

[MojoJojo]

I know of a company who offer Thai Baht loans to expats in Thailand to purchase land and property, The lending criteria is fairly flexible and they target proffessional expats working in Thailand.

Do you mind sharing which company is this? Is their rate comparable to banks?

[MojoJojo]

Foreigners with PR are able to obtain a mortgage. I obtained one from HSBC last month.

How much interest rate from HSBC? Did you get a mortgage on a newly bought property; or was it HELOC (home equity line of credit)?

[BL4u]

Mortgage in Thailand, it’s such a crap. Besides condos you can't own anything as a foreigner and will never get a mortage for. At the best you can get a mortgage for a condo.

About the difficulties getting a mortage… Go to your own country and try to get a mortgage and then come back to Thailand to find it's even more difficult over here! If you are not a resident and b- do not have a steady income (long term employment) what are you chances? Zero. Banks over here do not work different from the banks back home.

I heard that the Bank of Scotland offers overseas mortgage options… Really? Yes, but then only if you have as a minimum requirement a property back home as collateral!!! Mortgage option for foreigners

[Paul MBMG]

Do you mind sharing which company is this? Is their rate comparable to banks?

the company doing this is Hamptons International Mortgages Thailand

Their deal is actually LeasePurchase which deals with the land ownership problem and because it's leasepurchase there is no requirement to bring in the money from overseas/no requirement for PR

They do condos, houses and land

Hard to compare (terms up to 30 years depending on agae) but in general around the same monthly cost as Thai banks for comparable deals

PM if you want the details

ref the comment

heard that the Bank of Scotland offers overseas mortgage options… Really? Yes, but then only if you have as a minimum requirement a property back home as collateral!!! Mortgage option for foreigners

Nah - BoS have branches in Singapore and HK offering self-collaterlaised financing on properties in those locations plus UK and other (mainly European) jurisdictions as well as remortages on properties in those jurisdictions, but they're not claiming to offer anything in Thailand. Again PM me if you want the details

[trajan]

With respect to condos in Thailand, previously I received in the mail (in Bangkok) a brochure and loan application from UOB Bank Thailand entitled "Own Your Dream Condo in Thailand!" this is obviously targeted at expats in Thailand ...

it enclosed a name card "Yupadee Boonchawal" (Manager, Secured Products Division) head office at 191 South Sathorn Road (I think thats the Robot building?) 02-2343-4747

(P.S. Im not recommending or endorsing them, just passing along information I received just in case it can help someone)

FAQs

Q1. What are the benefits of a UOB International Home Loan-Thailand?

• Financing of up to 70% of the purchase price or valuation price (whichever is lower)

• Attractive interest rates

• Choice of loan currency: SGD or USD

• Repayment period of up to 20 years

Q2. What type of properties can I purchase with the loan?

Freehold condominiums for owner occupation or investment purposes in Thailand.

Q3. What are the interest rates offered?

• Loan in SGD: SGD Prime Lending Rate (currently 5.00%) + 1.00% = 6.00% p.a.

• Loan in USD: USD Prime Lending Rate (currently 8.25%) + 0.50% =8.75%p.a.

Q4. What is the maximum loan amount that I can borrow?

The maximum loan amount that you can borrow is up to 70% of the purchase price or valuation price (whichever is lower). In terms of dollar value, the maximum loan amount is SGD 1,000,000 or USD 600,000.

Q5. What is the maximum loan repayment period?

The maximum loan repayment period is 20 years or up to the point when the borrower with the highest income turns 65 years old.

For example, if the borrower with the highest income is 50 years old now, the maximum loan repayment period is 15 years.

Q6. Is there any fee involved in the loan application?

A processing fee of SGD 3,000 or USD 2,000 is payable upon the acceptance of letter of offer.

For amendment of loan application/re-processing after the approval of the facility, an amendment fee of SGD 150 or USD 100 will be applicable.

Q7. Can I get an in-principle approval for my loan?

Yes, you can obtain an in-principle approval for your loan that is valid for three months from the approval date. This is subject to a fee of SGD 100 or USD 100 and only one in-principle approval will be granted for each application.

Q8. Are there any cancellation charges?

The cancellation fee is 1.50% of the approved loan amount.

Q9. Am I allowed to do a loan prepayment?

Prepayment of loan is allowed, subject to a flat fee of 1.50% of the prepaid loan amount.

Q10. Do I have to pay for expenses such as legal fees, valuation fee, fire insurance or any other charges?

All expenses including legal fees, mortgage costs, remittance charges, annual valuation fee and fire insurance premium shall be borne by the borrower(s).

Q11. Am I eligible?

UOB International Home Loan – Thailand is open to Singapore citizens, Singapore Permanent Residents or [other] foreigners aged 21 and above with a minimum income of USD 65,000 or SGD 100,000 per annum.

Q12. How do I apply?

To apply, please complete the UOB International Home Loan – Thailand application form and submit it with the following documents:

Copy of Singapore NRIC (front and back) / or Passport (with valid expiry date) of all applicants

Signed copy of the Sales & Purchase Agreement (Reserve Agreement)

Original income documents:

For Salaried: - Employer’s letter addressed to UOB confirming position, years of service and remuneration OR - Recent Income Tax returns OR - Latest computerised pay-slip OR - Latest 6 months’ bank statements

For Self-employed: - Company registration AND - List of shareholders AND - Latest 6 months’ bank statements And - Recent 2 years’ Income Tax returns

Standby Letter of Credit (SBLC) Application Form (from Bank)

Consent form for credit bureau checks for applicants residing in Thailand (if applicable)

Deed poll/certificate of name change (if name differs from NRIC/Passport)

Other documents upon request

Q13. Who can I contact to take up the UOB International Home Loan-Thailand?

In Singapore, please call our 24-hour Customer Service hotline at 1800 2222 121.

In Thailand, please contact the following UOB (Thai) branches:

Amarin Plaza Branch

500 Amarin Plaza 1st Floor

Ploenchit Road Pathum Wan

Bangkok 10500

Tel: 0-2252-6292-3 / 0-2251-8579 /

0-2251-0896 / 0-2256-9045-6

Fax: 0-2252-7871

Business Hours:

Mon-Fri 08:30-17:00

Sat 11:00-17:00

Sathorn 1 Branch

191 South Sathorn Road Sathorn

Bangkok 10120

Tel: 0-2343-3000

Fax: 0-2287-2973-4

Business Hours:

Mon-Fri 08:30-15:30

Sathorn 2 Branch

179/3 Bangkok City Tower

1st Floor South Sathorn Road Sathorn

Bangkok 10120

Tel: 0-2679-5700-2

Fax: 0-2679-5703

Business Hours:

Mon-Fri 08:30-15:30

Sukhumvit 25 Branch

1 Ban Chang Glass House Building

1st Floor Sukhumvit 25 Road Klong Toey

Bangkok 10500

Tel: 0-2258-0270-1 / 0-2258-9330-2

Fax: 0-2258-4582

Business Hours:

Mon-Fri 08:30-15:30

Sukhumvit 26 Branch

690 Sukhumvit Road, Klong Toey,

Bangkok 10110

Tel: 0-2620-3888-90

Fax: 0-2260-5312

Business Hours:

Mon-Fri 08:30-15:30

//

//

[ajarnpim]

My company in the UK offers mortgages at competitive rates for expats who own property in their country of origin or anywhere else in the World

For example you own a house in the UK and want to secure a mortgage for property purchase in Thailand. No problem. Up to 100% financing available.

PM me for a pre qualification questionnaire with no obligation.

Can Thai person with property in the Uk qualify for a mortgage to develop property in Thailand

[russianrobert]

...........If you are not a resident and b- do not have a steady income (long term employment) what are you chances? Zero.............................

Would you lend money to someone like that?

[MojoJojo]

I reasearched this quite a bit. I don't pretend to have all the answers, but in summary it came down to this:

The Thai banks won't lend to foreigners anymore because:

a) by law, you're supposed to bring all the cash into thecountry to buy a condo (100% - provable by a foreign transaction certificate from the thai bank), and

not correct - if you can demostrate you have paid ur taxes on money earnt here, you can use that. I live in the proof that its possible, not many banks / people know though

Hi Skippybangkok,

Do you have PR or only work permit? Do you mind telling which bank lent money to foreigners so I can inquire as well. Thanks.