How is the following situation handled in Thailand:

Thai national owns a house.

Wishes to buy a new house.

Wants to use the money from the present house to buy the new house.

 

I thought one approach would be:

Buy the new house (downpayment + mortgage), using the present house as 'collateral'.   Then when the old house sells, use the money to pay off the mortgage.

 

Is that a thing here?

 

 

Thank you.

With as hard as it is to sell a house here in Thailand...I’d never consider it.  Of course, many people will think differently than myself.  Mortgage brokers, Realtors, etc.

Best sell the old house first , and rent something while building or buying another house.

 

 

A key point for the bank would be income / ability to make the mortgage payments.

 

23 minutes ago, john69 said:

A key point for the bank would be income / ability to make the mortgage payments.

 

Even when using an existing fully paid house with greater value as collateral?

 

 

19 minutes ago, JayBird said:

Even when using an existing fully paid house with greater value as collateral?

 

 

Considering same thing.  Hope to use the land and house to purchase land then sell the house after build is  complete, payments aren't a problem.  

2 hours ago, JayBird said:

Even when using an existing fully paid house with greater value as collateral?

 

 

I am confused. Do you want to get a bridge loan,or do you want to get a conventional  loan based on assets? in this case the house being the asset.

bridge loan

1. a sum of money lent by a bank to cover an interval between two transactions, typically the buying of one house and the selling of another.

    

   The difference is that bridge loans are short term loans . Usually on year, If you can't sell the property in that time frame you will have problems. bridge loans have usually higher interest rate since the lender has a short time to make a profit. 

    

   And a conventional guaranteed loan (house as collateral) can be as long as 30 years but requires higher closing costs and would probably have prepayment penalties. .