Old Farang Posted October 4, 2022 Share Posted October 4, 2022 (edited) Presently have home with Thai wife, would like to use home as collateral for loan on a new property. Any info regarding this appreciated. Recommended banks! Is there a better forum where this would be more appropriate or more likely to get a response? Edited October 4, 2022 by Old Farang 1 Link to comment Share on other sites More sharing options...
metisdead Posted October 4, 2022 Share Posted October 4, 2022 Moved to the Real Estate, Housing, House and Land Ownership forum. 1 Link to comment Share on other sites More sharing options...
Popular Post Liverpool Lou Posted October 4, 2022 Popular Post Share Posted October 4, 2022 (edited) 13 minutes ago, Old Farang said: Presently have home with Thai wife, would like to use home as collateral for loan on a new property. Any info regarding this appreciated. If you or your wife have the required income to justify the loan you shouldn't have a problem with any bank. Your own bank, or her bank, wouldn't be a bad place to start. If you're hoping to get a loan just by offering the property as security, i.e. no income or not enough to repay the loan, you won't find it easy. Banks are in the business of having loans repaid with interest, they're not interested in having to sell repossessed property. Edited October 4, 2022 by Liverpool Lou 4 2 Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 Thank you! Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 Any advantage to setting up a Thai company with my wife and family members as partners? Link to comment Share on other sites More sharing options...
Liverpool Lou Posted October 4, 2022 Share Posted October 4, 2022 1 minute ago, Old Farang said: Any advantage to setting up a Thai company with my wife and family members as partners? I suppose that depends on for what purpose? 1 Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 Thank Lou According to my wife securing a loan easier if the loan is for a company. At present we dont have a company. Link to comment Share on other sites More sharing options...
Popular Post Liverpool Lou Posted October 4, 2022 Popular Post Share Posted October 4, 2022 2 minutes ago, Old Farang said: Thank Lou According to my wife securing a loan easier if the loan is for a company. At present we dont have a company. For any credibility with a bank, a company applying for a loan would have to be established, trading and have accounts for the bank to check. 2 2 Link to comment Share on other sites More sharing options...
marin Posted October 4, 2022 Share Posted October 4, 2022 13 minutes ago, Old Farang said: Thank Lou According to my wife securing a loan easier if the loan is for a company. At present we dont have a company. Since the house you own is in your wife's name does she have enough income per month to support the proposed loan? This is much more important than a company I do believe. Link to comment Share on other sites More sharing options...
bolt Posted October 4, 2022 Share Posted October 4, 2022 I tried this method earlier and got this response From MAGNA CARTER The process is as follows: First, we need to value the property for a fee of 4,500 THB and then we receive a report giving us the property value, also checking that it's legal. Once we have that report, we can lend from 50-60% of the value of the property. The terms of the loan is as follows: 1) Period from 6 months up to 5 years. 2) Interest is 12% per year. The first 6 months interest are taken up front then it can be paid monthly. 3) The loan is secured by way of a registered mortgage on the property. The ownership of the property stays in the owner’s name. 4) There is a government fee of 1.1% to be paid (from the total of the loan) for the registering of the mortgage at the land office. We charge a one time fee of 5% of the value of the loan being the set up fee and for us arranging the funds and to make sure the lender is secured through the transaction. Apart from the valuation fee of 4,500THB all the other fees can be deducted from the loan amount. 1 Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 1 hour ago, Liverpool Lou said: For any credibility with a bank, a company applying for a loan would have to be established, trading and have accounts for the bank to check. Yes this is what I suspect too, but lawyer suggesting this, I am skeptical. They suggest only 3 months of banking records required for business, again I am very skeptical, dont trust lawyers. 2 Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 52 minutes ago, bolt said: I tried this method earlier and got this response From MAGNA CARTER The process is as follows: First, we need to value the property for a fee of 4,500 THB and then we receive a report giving us the property value, also checking that it's legal. Once we have that report, we can lend from 50-60% of the value of the property. The terms of the loan is as follows: 1) Period from 6 months up to 5 years. 2) Interest is 12% per year. The first 6 months interest are taken up front then it can be paid monthly. 3) The loan is secured by way of a registered mortgage on the property. The ownership of the property stays in the owner’s name. 4) There is a government fee of 1.1% to be paid (from the total of the loan) for the registering of the mortgage at the land office. We charge a one time fee of 5% of the value of the loan being the set up fee and for us arranging the funds and to make sure the lender is secured through the transaction. Apart from the valuation fee of 4,500THB all the other fees can be deducted from the loan amount. What is source of this? Is this still valid, ie how old is this info? 1 Link to comment Share on other sites More sharing options...
bolt Posted October 4, 2022 Share Posted October 4, 2022 17 minutes ago, Old Farang said: What is source of this? Is this still valid, ie how old is this info? i contacted Magna Carter earlier this year. i didn't go through with it 1 Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 Are there advantages using a Thai govt bank? Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 I presume you are referring to MagnaCarta Legal Services. Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 2 hours ago, bolt said: I tried this method earlier and got this response From MAGNA CARTER The process is as follows: First, we need to value the property for a fee of 4,500 THB and then we receive a report giving us the property value, also checking that it's legal. Once we have that report, we can lend from 50-60% of the value of the property. The terms of the loan is as follows: 1) Period from 6 months up to 5 years. 2) Interest is 12% per year. The first 6 months interest are taken up front then it can be paid monthly. 3) The loan is secured by way of a registered mortgage on the property. The ownership of the property stays in the owner’s name. 4) There is a government fee of 1.1% to be paid (from the total of the loan) for the registering of the mortgage at the land office. We charge a one time fee of 5% of the value of the loan being the set up fee and for us arranging the funds and to make sure the lender is secured through the transaction. Apart from the valuation fee of 4,500THB all the other fees can be deducted from the loan amount. So was this to be a loan thru a bank or a lawyer? Link to comment Share on other sites More sharing options...
crazykopite Posted October 4, 2022 Share Posted October 4, 2022 You would be wasting your time and money and besides that it takes the banks for ever and a day to make a decision I waited over 3 months and they would only loan a certain amount of the valuation of the property and land that you would have to use as security 1 Link to comment Share on other sites More sharing options...
ed strong Posted October 4, 2022 Share Posted October 4, 2022 2 hours ago, bolt said: I tried this method earlier and got this response From MAGNA CARTER The process is as follows: First, we need to value the property for a fee of 4,500 THB and then we receive a report giving us the property value, also checking that it's legal. Once we have that report, we can lend from 50-60% of the value of the property. The terms of the loan is as follows: 1) Period from 6 months up to 5 years. 2) Interest is 12% per year. The first 6 months interest are taken up front then it can be paid monthly. 3) The loan is secured by way of a registered mortgage on the property. The ownership of the property stays in the owner’s name. 4) There is a government fee of 1.1% to be paid (from the total of the loan) for the registering of the mortgage at the land office. We charge a one time fee of 5% of the value of the loan being the set up fee and for us arranging the funds and to make sure the lender is secured through the transaction. Apart from the valuation fee of 4,500THB all the other fees can be deducted from the loan amount. Would not go anywhere near that proposal. Why do you need another property? 1 Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 7 minutes ago, ed strong said: Would not go anywhere near that proposal. Why do you need another property? Would like some rental income. 1 Link to comment Share on other sites More sharing options...
PPGuy Posted October 4, 2022 Share Posted October 4, 2022 A Thai relative arranged a house loan refinancing recently. Used 'Thai Credit Retail Bank' (unknown to me previously) and was happy with both their house valuation and the rate offered. Previously had a loan with SCB but at a high rate. Should be noted that their scrutiny of salary / expenses and other o/s loans (credit cards, car loans, etc) was rather strict. I believe they need minimum of 2 years salary info. Took a couple of months or so to complete. Don't have info on the financials involved but might be worth contacting. 1 Link to comment Share on other sites More sharing options...
bolt Posted October 4, 2022 Share Posted October 4, 2022 1 hour ago, Old Farang said: So was this to be a loan thru a bank or a lawyer? i think it was through a Bank, and Magnacarter act on your behalf? I was looking at ANY option to release some equity and only found this option. but i didn't go through as the terms and con's were not for me Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 21 minutes ago, bolt said: i think it was through a Bank, and Magnacarter act on your behalf? I was looking at ANY option to release some equity and only found this option. but i didn't go through as the terms and con's were not for me Ok thanks for that, much appreciation. Link to comment Share on other sites More sharing options...
Thomas KH Posted October 4, 2022 Share Posted October 4, 2022 3 hours ago, bolt said: The first 6 months interest are taken up front I am always on high alert when I read this kind of condition. Link to comment Share on other sites More sharing options...
SheungWan Posted October 4, 2022 Share Posted October 4, 2022 The risk is relying on the second property income to pay the mortgage. If the rental income stops then the primary property defaults to the loan company. There is a reason why banks (at least in the UK) will primarily only lend against declared income. If you are still wanting to proceed and with a loan company rather than a bank, then beware their business model maybe assuming high degree of risk you will default. Link to comment Share on other sites More sharing options...
scorecard Posted October 4, 2022 Share Posted October 4, 2022 5 hours ago, Old Farang said: Thank Lou According to my wife securing a loan easier if the loan is for a company. At present we dont have a company. It's not that simple, any bank will want to be convinced that you or your wife (if it's a pesonal mortgae loan) or the company (if thre bank gives the loan to the company, can already prove a past income stream and can prove there will be a continuing income stream to support the repayments. If it's a new company then theres' no past business history (sales/revenue/profit margins/operating expenses, etc., therefore bank likely to be hesitant to loan money to the company. 1 1 Link to comment Share on other sites More sharing options...
Old Farang Posted October 4, 2022 Author Share Posted October 4, 2022 1 hour ago, scorecard said: It's not that simple, any bank will want to be convinced that you or your wife (if it's a pesonal mortgae loan) or the company (if thre bank gives the loan to the company, can already prove a past income stream and can prove there will be a continuing income stream to support the repayments. If it's a new company then theres' no past business history (sales/revenue/profit margins/operating expenses, etc., therefore bank likely to be hesitant to loan money to the company. So far I would concur with what everyone has said, but I have very limited experience with this kind of thing, especially in Thailand. What I’m hearing here is that Thailand is not that different from other countries I have lived in. Link to comment Share on other sites More sharing options...
Dave0206 Posted October 4, 2022 Share Posted October 4, 2022 10 hours ago, bolt said: I tried this method earlier and got this response From MAGNA CARTER The process is as follows: First, we need to value the property for a fee of 4,500 THB and then we receive a report giving us the property value, also checking that it's legal. Once we have that report, we can lend from 50-60% of the value of the property. The terms of the loan is as follows: 1) Period from 6 months up to 5 years. 2) Interest is 12% per year. The first 6 months interest are taken up front then it can be paid monthly. 3) The loan is secured by way of a registered mortgage on the property. The ownership of the property stays in the owner’s name. 4) There is a government fee of 1.1% to be paid (from the total of the loan) for the registering of the mortgage at the land office. We charge a one time fee of 5% of the value of the loan being the set up fee and for us arranging the funds and to make sure the lender is secured through the transaction. Apart from the valuation fee of 4,500THB all the other fees can be deducted from the loan amount. Omg if you want approx 2 million with the 5% + 1.1% + 6 months interest upfront @ 12% pa you probably need around 2.5 million how can you make money by buying property? I'm not sure exact interest it would cost but in region of 20% depending how long you borrow assume you borrow today and immediately buy and have rental income very optimistic returns expected 1 Link to comment Share on other sites More sharing options...
MadMuhammad Posted October 5, 2022 Share Posted October 5, 2022 Have you approached the sell to discuss vendor financing? Much better rates than a bank loan and the mortgage can be registered on the chanote 1 Link to comment Share on other sites More sharing options...
Old Farang Posted October 5, 2022 Author Share Posted October 5, 2022 1 hour ago, MadMuhammad said: Have you approached the sell to discuss vendor financing? Much better rates than a bank loan and the mortgage can be registered on the chanote Thank you for this approach, at present just gathering information prior to taking any concrete steps and give me background to ask intelligent questions with regard to financing. I would probably want to ensure that the loan could be paid back early before term, and not locked into long term interest. Link to comment Share on other sites More sharing options...
Liverpool Lou Posted October 6, 2022 Share Posted October 6, 2022 On 10/4/2022 at 3:04 PM, crazykopite said: they would only loan a certain amount of the valuation of the property and land that you would have to use as security That's exactly how banks work when they're lending money, do you expect them to lend more than the value of the security? Link to comment Share on other sites More sharing options...
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