Loan Options For Buying A Condo

[TeacherMali]

I am interested in buying a condo here in Thailand.

I have been working in Thailand for over 2 years and I have a valid work permit and VISA, but apparently this doesn't matter.

For what I found out today, the banks are no longer allowed to lend foreigners any money at all. Foreigners cannot get loans or mortgages.

Can anyone recommend how else I could try to get the money?

Does anyone know anything about off-shore loans?

Thanks

[torrenova]

Owner financing appears sometimes but the banks will likely lend you zero. If you have a Thai partner she may be able to borrow money if she has a job and sufficient savings / income.

[sonicdragon]

Offshore banks are the way to go. If you are british try LloydsTSB - they have an office in HK. I believe they would be looking for an LTV of no more than 60%

[TeacherMali]

Offshore banks are the way to go. If you are british try LloydsTSB - they have an office in HK. I believe they would be looking for an LTV of no more than 60%

Hello Sonic,

I hope you don't mind me asking you a few more questions about offshore loans.

I am from Canada, does that make a difference?

Where do you recommend I try, and how do I contact them?

How long does the process generally take?

If I want to borrow 3 million, approx. how much do I need to have for a down payment?

Thank so much

[sonicdragon]

Lloyds and others will be happy to deal with a Canadian. I only mentioned being british becauuse they are a british bank and if you have assets and background in the UK it will be easier for them to check. Anyway, you can contact them on (852) 2847 3084 but there are heaps of other banks in singapore and HK you could also try.

As for downpayment, this will depend on the developer/seller, whether the property is finished or under construction etc. The bank will assess your credit risk and determine how much they can lend you based on your assets and your income. The LTV will depend on many factors such as the country. Thailand might have a lower LTV than say, HK. A 60% LTV means you will have to pay 40% and they will loan you 60% of the purchase price (or their valuation if lower). Some banks may not lend on property in thailand depending on your personal situation or their own poolicies. This means they might require some other kind of securiry, such as a mortgage on property located elsewhere.

As for time, when I used Lloyds a few years ago they gave approval in principal within 3 days, and an advance credit line was in place within a week. An advance credit line is useful if you don't have a specific property in mind. Once you find the property you want, you can then move quickly.

[TeacherMali]

Lloyds and others will be happy to deal with a Canadian. I only mentioned being british becauuse they are a british bank and if you have assets and background in the UK it will be easier for them to check. Anyway, you can contact them on (852) 2847 3084 but there are heaps of other banks in singapore and HK you could also try.

As for downpayment, this will depend on the developer/seller, whether the property is finished or under construction etc. The bank will assess your credit risk and determine how much they can lend you based on your assets and your income. The LTV will depend on many factors such as the country. Thailand might have a lower LTV than say, HK. A 60% LTV means you will have to pay 40% and they will loan you 60% of the purchase price (or their valuation if lower). Some banks may not lend on property in thailand depending on your personal situation or their own poolicies. This means they might require some other kind of securiry, such as a mortgage on property located elsewhere.

As for time, when I used Lloyds a few years ago they gave approval in principal within 3 days, and an advance credit line was in place within a week. An advance credit line is useful if you don't have a specific property in mind. Once you find the property you want, you can then move quickly.

Did you actually have to go to Hong Kong to get your money? I can't really afford a trip and a condo!

[sonicdragon]

Lloyds and others will be happy to deal with a Canadian. I only mentioned being british becauuse they are a british bank and if you have assets and background in the UK it will be easier for them to check. Anyway, you can contact them on (852) 2847 3084 but there are heaps of other banks in singapore and HK you could also try.

As for downpayment, this will depend on the developer/seller, whether the property is finished or under construction etc. The bank will assess your credit risk and determine how much they can lend you based on your assets and your income. The LTV will depend on many factors such as the country. Thailand might have a lower LTV than say, HK. A 60% LTV means you will have to pay 40% and they will loan you 60% of the purchase price (or their valuation if lower). Some banks may not lend on property in thailand depending on your personal situation or their own poolicies. This means they might require some other kind of securiry, such as a mortgage on property located elsewhere.

As for time, when I used Lloyds a few years ago they gave approval in principal within 3 days, and an advance credit line was in place within a week. An advance credit line is useful if you don't have a specific property in mind. Once you find the property you want, you can then move quickly.

Did you actually have to go to Hong Kong to get your money? I can't really afford a trip and a condo!

I'm a HK resident, and I was buying property in Australia. It's not very expensive to go to HK for a short vacation If that is a serious concern you perhaps should not be considering buying a condo on partly borrowed money and you will probably find it difficult to find a bank that will finance you.

I'm just giving you some general advice. Lloyds may not be the best option, but I'm pretty sure you won't find a local bank that will do it - hence HK and Singapore are the best bets.

Edited June 30, 2007 by sonicdragon

[sonicdragon]

Actually, I seem to remember that bangkok bank had a scheme for foreigners to finance property.

[bino]

Actually, I seem to remember that bangkok bank had a scheme for foreigners to finance property.

They did... from their bank in Singapore. I beleive they have scrapped the program recently.

[laxman1960]

I am interested in buying a condo here in Thailand.

I have been working in Thailand for over 2 years and I have a valid work permit and VISA, but apparently this doesn't matter.

For what I found out today, the banks are no longer allowed to lend foreigners any money at all. Foreigners cannot get loans or mortgages.

Can anyone recommend how else I could try to get the money?

Does anyone know anything about off-shore loans?

Thanks

PM me. My colleague has set up an offshore loan program with a great bank. If you have assets or other collateral he can likely get you an offshore loan, then you take the cash into the country to purchase the condo and title it in your own name.

Dan

[ProThaiExpat]

Reality is a bitch, but since the property in question is the collateral for the loan in a mortgage situation, I can't imagine an offshore bank relying on property in a foreign country as collateral where they don't have a branch. Foreign appraisers, etc. are only part of the problem for them, foreclosure is another and what to do with the foreclosed property.

If you have assets you can use to collateralize your loan, no sweat, otherwise, you will be dealing with a great deal of rejection.

[djparker5]

Reality is a bitch, but since the property in question is the collateral for the loan in a mortgage situation, I can't imagine an offshore bank relying on property in a foreign country as collateral where they don't have a branch. Foreign appraisers, etc. are only part of the problem for them, foreclosure is another and what to do with the foreclosed property.

If you have assets you can use to collateralize your loan, no sweat, otherwise, you will be dealing with a great deal of rejection.

Saenchai Group provides loans to foreigners in Thailand, they do prefer UK or EU nationals as all loans go through the UK but they are trying to arrange a program that covers all nationals. Give Steen Johansen a call on 08 397 222 09 to arrange a meeting. These guys are professional, come from banking backgrounds, are foreigners themselves and provide top notch service.