Can A Farang Borrow From The Bank To Buy A Condo?

[cowman1]

Sorry if this has been covered before, but I couldn't find a direct answer when I searched the forums. Basically my circumstances are, I've been living here about 3 years. I have had a steady job as a teacher at the same school for a bout 2 years (which I have all the credentials for and a work permit, etc..) .

Just wandering if it is at all possible to borrow money or get some form of mortgage from the bank? I have seen a condo I am interested in buying (I'm told that a farang can own a condo outright). And I have worked out I can pay for it outright within 4-5 years, but would need to borrow the capital to begin with. Is this possible??

[sbk]

///MOVED/// to real estate forum

[skippy]

Sorry if this has been covered before, but I couldn't find a direct answer when I searched the forums. Basically my circumstances are, I've been living here about 3 years. I have had a steady job as a teacher at the same school for a bout 2 years (which I have all the credentials for and a work permit, etc..) .

Just wandering if it is at all possible to borrow money or get some form of mortgage from the bank? I have seen a condo I am interested in buying (I'm told that a farang can own a condo outright). And I have worked out I can pay for it outright within 4-5 years, but would need to borrow the capital to begin with. Is this possible??

Ask if they will offer you a Lease to Buy contract for 3 + 3 years.

[johnnyk]

No.

[klikster]

If you can find private or offshore money you might. I believe that Thai banks are not allowed (by law) to lend on condos to foreigners.

At one time (not sure about now), the Singapore branch of BKK Bank was reported to be lending 60-70% on condos.

Edited November 25, 2007 by klikster

[Prakanong]

You can borrow in Singapore to buy a Condo in Thailand (or you could till quite recently but not seen the adverts for a month or two).

Its OUB I think and they will lend up to 70%

[ray08]

You can borrow through Bangkok Bank , but must speak to the Singapore Branch , if you contact local branches they would not have a clue , better is UOB bank , you can contact local Bangkok branch and they will first ask for financials and if all good , no problem to borrow , both banks are going upto 70% , one last thing is they prefer to lend on new properties

Edited November 25, 2007 by ray08

[Prakanong]

You can borrow through Bangkok Bank , but must speak to the Singapore Branch , if you contact local branches they would not have a clue , better is UOB bank , you can contact local Bangkok branch and they will first ask for financials and if all good , no problem to borrow , both banks are going upto 70% , one last thing is they prefer to lend on new properties

Are Bangkok Bank in Singapore still doing it?

I heard someone down here (I live in Singapore) say they had stopped and only UOB were - maybe they were mistaken or i heard wrong.

Is OUB only for Singaporean Citizens and Singaporean PR or can anyone get it - I thought there might be restrictions?

[ray08]

You can borrow through Bangkok Bank , but must speak to the Singapore Branch , if you contact local branches they would not have a clue , better is UOB bank , you can contact local Bangkok branch and they will first ask for financials and if all good , no problem to borrow , both banks are going upto 70% , one last thing is they prefer to lend on new properties

Are Bangkok Bank in Singapore still doing it?

I heard someone down here (I live in Singapore) say they had stopped and only UOB were - maybe they were mistaken or i heard wrong.

Is OUB only for Singaporean Citizens and Singaporean PR or can anyone get it - I thought there might be restrictions?

Bangkok bank still doing it , but when i spoke last time they said something along the lines that once a certain quota is lent out , they them wait for next quota of money , which seems the case because recently they confirmed more money was available , again you must speak to correct person in Singapore Bangkok bank , UOB no problem for non singapore as long as figures stack up.

[cowman1]

Thanks for all your help, so it's not that straight-forward then. To be expected, I guess. I'll look into the banks you mentioned.

[Westerner]

Sorry if this has been covered before, but I couldn't find a direct answer when I searched the forums. Basically my circumstances are, I've been living here about 3 years. I have had a steady job as a teacher at the same school for a bout 2 years (which I have all the credentials for and a work permit, etc..) .

Just wandering if it is at all possible to borrow money or get some form of mortgage from the bank? I have seen a condo I am interested in buying (I'm told that a farang can own a condo outright). And I have worked out I can pay for it outright within 4-5 years, but would need to borrow the capital to begin with. Is this possible??

Unless the situation has changed from when I bought my property many years ago, a foreigner cannot buy property in Thailand with money earned in Thailand. He has to show that the money has come from abroad.

[Ducati]

Yes, you can borrow from a bank that has a branch in Singapore e.g UOBT, but I would advise you to seek another way to fund your house purchase bcos the interest rates offered will be exceedingly high.

[trajan]

Unless the situation has changed from when I bought my property many years ago, a foreigner cannot buy property in Thailand with money earned in Thailand. He has to show that the money has come from abroad.

unless that foreigner holds a blue or white "Certificate of Residence" booklet....then no need to show money came from abroad.....

[trajan]

since this question keeps popping up, I'll re-post this here:

UOB in Singapore and UOB 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)

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 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.

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In Thailand, the contacts were 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

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