Bank Loan After Title Transfer Possible?

[tangoll]

I am a farang and buying a condo in Bangkok, doing the title transfer in my own name at end of August. I know that local Thai banks cannot lend money for mortgages to farangs (except for the Bangkok Bank deals done via Singapore). What about after the title transfer (with the proper and sufficient Foreign Exchange Certificates to cover total cost of condo), has any farang taken out a loan from a local bank against the value of the condo (say up to 50%)? Has anyone done this? And if so, are there any obstacles, like having to register the mortgage with the Lands Department? What if the bank is willing to loan the money without registering the mortgage, but keeping the title document in their possession?

Any suggestion and experiences welcome. I realize that many readers here advise against buying property in Bangkok, but some of us who purchase have our own reasons for wishing to purchase here, and defending our reason is not the primary focus of this thread.

Thanks.

Edited August 3, 2007 by tangoll

[tangoll]

Has any farang ever tried to do this? Seems like such a straightforward thing to do -- borrow against value of a paid for condo. Has anyone ever applied and been rejected by a bank, and if so, what reason did the bank give you?

Thanks

[ThaiWanderer68]

Has any farang ever tried to do this? Seems like such a straightforward thing to do -- borrow against value of a paid for condo. Has anyone ever applied and been rejected by a bank, and if so, what reason did the bank give you?

Thanks

Can't see it working. It is effectively a remortgage, and has the same net effect. i.e you still own the title, you still have a loan, and the bank still has a charge/mortgage over your property.

[percy2]

I am a farang and buying a condo in Bangkok, doing the title transfer in my own name at end of August. I know that local Thai banks cannot lend money for mortgages to farangs (except for the Bangkok Bank deals done via Singapore). What about after the title transfer (with the proper and sufficient Foreign Exchange Certificates to cover total cost of condo), has any farang taken out a loan from a local bank against the value of the condo (say up to 50%)? Has anyone done this? And if so, are there any obstacles, like having to register the mortgage with the Lands Department? What if the bank is willing to loan the money without registering the mortgage, but keeping the title document in their possession?

Any suggestion and experiences welcome. I realize that many readers here advise against buying property in Bangkok, but some of us who purchase have our own reasons for wishing to purchase here, and defending our reason is not the primary focus of this thread.

Thanks.

If you have a work permit yes you can.

Cheers

[oldhand]

I am a farang and buying a condo in Bangkok, doing the title transfer in my own name at end of August. I know that local Thai banks cannot lend money for mortgages to farangs (except for the Bangkok Bank deals done via Singapore). What about after the title transfer (with the proper and sufficient Foreign Exchange Certificates to cover total cost of condo), has any farang taken out a loan from a local bank against the value of the condo (say up to 50%)? Has anyone done this? And if so, are there any obstacles, like having to register the mortgage with the Lands Department? What if the bank is willing to loan the money without registering the mortgage, but keeping the title document in their possession?

Any suggestion and experiences welcome. I realize that many readers here advise against buying property in Bangkok, but some of us who purchase have our own reasons for wishing to purchase here, and defending our reason is not the primary focus of this thread.

Thanks.

If you have a work permit yes you can.

Cheers

Percy2

Can you please go into a bit more detail here. I am not sure that I have seen this done before.

Thanks

[percy2]

I am a farang and buying a condo in Bangkok, doing the title transfer in my own name at end of August. I know that local Thai banks cannot lend money for mortgages to farangs (except for the Bangkok Bank deals done via Singapore). What about after the title transfer (with the proper and sufficient Foreign Exchange Certificates to cover total cost of condo), has any farang taken out a loan from a local bank against the value of the condo (say up to 50%)? Has anyone done this? And if so, are there any obstacles, like having to register the mortgage with the Lands Department? What if the bank is willing to loan the money without registering the mortgage, but keeping the title document in their possession?

Any suggestion and experiences welcome. I realize that many readers here advise against buying property in Bangkok, but some of us who purchase have our own reasons for wishing to purchase here, and defending our reason is not the primary focus of this thread.

Thanks.

If you have a work permit yes you can.

Cheers

Loans are available to people here with workpermits.

In the same way that credit cards are.

If you can guarantee the loan with a property title it will actually be quite easy.

I have done it before , last time with Klasikorn, though they are becoming increasingly difficult to deal with.

Bank of Ayuttaya is receptive.

Banks love to lend money within the frame work of the law.

Cheers

Percy2

Can you please go into a bit more detail here. I am not sure that I have seen this done before.

Thanks

[donx]

I am a farang and buying a condo in Bangkok, doing the title transfer in my own name at end of August. I know that local Thai banks cannot lend money for mortgages to farangs (except for the Bangkok Bank deals done via Singapore). What about after the title transfer (with the proper and sufficient Foreign Exchange Certificates to cover total cost of condo), has any farang taken out a loan from a local bank against the value of the condo (say up to 50%)? Has anyone done this? And if so, are there any obstacles, like having to register the mortgage with the Lands Department? What if the bank is willing to loan the money without registering the mortgage, but keeping the title document in their possession?

Any suggestion and experiences welcome. I realize that many readers here advise against buying property in Bangkok, but some of us who purchase have our own reasons for wishing to purchase here, and defending our reason is not the primary focus of this thread.

Thanks.

If you have a work permit yes you can.

Cheers

Percy2

Can you please go into a bit more detail here. I am not sure that I have seen this done before.

Thanks

I think what Percy2 is saying is that if you have a work permit you can get a mortgage on a condo both before or after title transfer. If after title transfer, then it would be, as ThaiWanderer68 says, a remortgage a.k.a a refinance.

Slightly off topic, my wife asked her friend at a bank if she could borrow off of a property she owns free-and-clear with a chanote title. Her friend said that since my wife doesn't live in Thailand she can't get a loan. My brother-in-law could be used to guarantee the loan since he lives in Thailand. The loan amount would be limited to what he would qualify to pay back based upon his monthly income.

Similarly, if you have a work permit, you should be able to get a loan against your condo. You probably will end up paying a higher interest rate and/or being limited to a certain percent or a certain maximum loan amount.

This is all conjecture on my part and is based upon assuming that Percy2 is correct.

[percy2]

I think what Percy2 is saying is that if you have a work permit you can get a mortgage on a condo both before or after title transfer. If after title transfer, then it would be, as ThaiWanderer68 says, a remortgage a.k.a a refinance.

Not quite. You can get a loan guaranteed by your property.

Cheers

[ThaiWanderer68]

I think what Percy2 is saying is that if you have a work permit you can get a mortgage on a condo both before or after title transfer. If after title transfer, then it would be, as ThaiWanderer68 says, a remortgage a.k.a a refinance.

Not quite. You can get a loan guaranteed by your property.

Cheers

When you say loan guaranteed by your property, what amounts are we talking? Do you mean a small loan of up to say THB1mio, or a small % for miscellaneous purposes? Or are we talking say 50% against say a THB10mio condo. I think there are different rules based on amount/purpose etc

[ThaiWanderer68]

[i think what Percy2 is saying is that if you have a work permit you can get a mortgage on a condo both before or after title transfer. If after title transfer, then it would be, as ThaiWanderer68 says, a remortgage a.k.a a refinance.

Slightly off topic, my wife asked her friend at a bank if she could borrow off of a property she owns free-and-clear with a chanote title. Her friend said that since my wife doesn't live in Thailand she can't get a loan. My brother-in-law could be used to guarantee the loan since he lives in Thailand. The loan amount would be limited to what he would qualify to pay back based upon his monthly income.

Similarly, if you have a work permit, you should be able to get a loan against your condo. You probably will end up paying a higher interest rate and/or being limited to a certain percent or a certain maximum loan amount.

This is all conjecture on my part and is based upon assuming that Percy2 is correct.

Yes that was basically what I was trying to say. i.e if OP couldn't get one before I don't think it would be any different after, as the substance of both is effectively the same. On the other hand, if OP could get before they should also be able to get after.

The following website may be of interest. It can't vouch for its accuracy, only the ones that say no. However, it appears possible with some. Siam Commercial looks best bet for a try. You might also get different answers in different branches of the same bank. This often happens for other products, and can depend on factors such as how good someone's English is, how confident they are dealing with foreigners, how they are feeling, position of the moon.... etc

http://www.sallmannsthailand.com/info.php?m=3&n=1

Edited August 7, 2007 by ThaiWanderer68

[percy2]

Thai banks will give a loan to a non national if the loan can be guaranteed by their salary.

For this you must have a workpermit. Offshore income is not considered.

If the loan amount is too great to be guaranteed by your salary then you can also use property.

You could also use someone else's salary or property.

They won't give you a loan against property you don't already own because for the purchase of this property the money has to come from offshore.

Depending on your personal circumstances + relationship with the bank they will loan you up to 100% of the appraised value of the property.

I can't offer anything to substantiate this other than personal experience.

Cheers

[chayatom]

I have met with Tisco and applied for a loan on a Condominium owned by my (thai)Company - they have approved in principle but i am not counting my chickens until i see the money in my hands. They will lend up 80% of the Market Value of the property and repayment term is upto 10 years at TISCO base plus 1%. They require me to have a work permit and a thai guarantor but as its effectively a loan to the Company i am not sure how relevant this actually is.