House Financing - Need Longer Term

[Valjean]

I am getting ready to purchase a house in Bangkok. I met with Bangkok Bank who I bank with this week and got some info.

I’m 54 and the Bangkok Bank will only provide a 6 year loan (age 60). I believe this might be a standard Thai requirement. If my employer provides a letter saying I can work until I’m 65 (heaven forbid but that’s a different story) they could do an 11 year loan. I can try this but it may be hard to get this in writing in a way that meets my company’s policy (no employment agreements) and the bank. I’ll see.

I wouldn’t mind something more like a 20 year repayment just to keep the monthly payments down and or reducing the amount I bring into Thailand to make the loan amount less. 20-30% isn’t an issue but I’d rather not bring the assets over her that might equal a 50% or more down payment. I figure it’s always easy to bring more later and pay it down faster if I want. Harder to do the opposite.

My wife is considerably younger than me. I seem to recall that a bank that will take her age into consideration. The view of Bangkok Bank was that I’m the one with the job and money to make the payments and not her (true).

Anyone with experience with this and recommendations of banks that might be flexible.

[TheAceFace]

Although I am younger and married, we just a got a morgage from SCB, 70% of the house value over 25yrs. Can not fault their service.

Ace

[bob4you]

When I was 60 I applied for a loan for 50% LTV from SCB and was assured they would make the loan, I paid the seller their equity (50%) waited 2 months and was then informed I needed another B100,000 down, I paid it and 45 days later they informed me the regional manager turned my loan down as I was retired with not job. When I asked what I could do they said put 125% of the loan amount, show a good payment record and after 2 years they could probaly give me the mortgage. When I asked them to put that in writing they refused. I now longer bank with SCB, and when I asked the branch manger how they could tell me I was approved then take the approval away without my situation changeing the basic answer was TIT.

When I quized her on how the Loan Officer could tell me I was approved they take the approval away the explained this was "his first mortage".

Lie, lie, lie.

[WilliamJarvis]

If this is a mortgage for a house, I'd bet the major issue is not your age but the fact you cannot [as a foreigner] be principal borrower. What you would need to do is to make your wife the principal borrower. Although in the West this would be an issue of showing evidence of a salary, in LoS it is more a case of showing your wife has an income.

My suggestion would be

- to set up a monthly transfer to our wife's account covering the monthly mortgage repayment.

- act as guarantor on the home loan

You may find these works. Then again, you may find it doesn't.

Edited January 13, 2008 by WilliamJarvis

[thaigene2]

If this is a mortgage for a house, I'd bet the major issue is not your age but the fact you cannot [as a foreigner] be principal borrower. What you would need to do is to make your wife the principal borrower. Although in the West this would be an issue of showing evidence of a salary, in LoS it is more a case of showing your wife has an income.

My suggestion would be

- to set up a monthly transfer to our wife's account covering the monthly mortgage repayment.

- act as guarantor on the home loan

You may find these works. Then again, you may find it doesn't.

My understaning is 8 years max for a foreigner with a certifiable Thai job. I always wondered why it was "8" years...a friend suggested it was because most marriages that fail do so by year 8 - laws of averages or some such notion. And since the foreigner is paying the loan they want to get it all back as the Thai wife w(probably) won;t be able to make the payments.

[WilliamJarvis]

^you could be right. But unless you have PR status in Thailand (forgetting the fact you may be a citizen, in which case the issue is irrelevant), foreigners are on year-to-year visas. There may be exceptions, like those who are on married visa, but the basic issue to a bank is you are only as good as your next visa renewal, i.e. 1 year or less from today.

QED, you're a bad investment risk (which also happens to be the reason why most foreigners cannot get credit cards in LoS, even if they meet the local requirements).

When I was looking around I was offered 10 year loans with both HSBC and StandChart. These were personal loans and not mortgages, thus not tax deductible. Both were offered off the back of the strength of off-shore bank accounts. I eventually with Thanchart, because they agreed to structure a mortgage (tax deductions and all) on the basis of the structure given above.

But that's only my experience, and things - other than the fact that a relationship with a Thai woman will not last more than 8 years - may well have changed (as I no longer live in LoS)

[buddhafly]

a friend got me the following info from UOB

they are offering a first year at about 2.99 or 3.99%

after that its like 7.55% or such!

i have nothing to compare it to, and need to do some homework for sure.

any info on interest rates and repayment periods appreciated. i am legally employed here and can borrow thru my wife.

[sweetchariot]

As an ex bank manager in the UK, I would have serious alarm bells ringing if I was to lend you £1.

You are 54, and want a long term loan to buy a house? We are only talking a few million baht here, you are supposed to be in the age group that can finance small purchases like this by yourself.

It would worry me even further if I were a Thai bank manager, that a 'rich' farang such as yourself needs to borrow this money, and then ask for a longer repayment term to make the repayments affordable!!

Go home if you are that skint.

[Valjean]

As an ex bank manager in the UK, I would have serious alarm bells ringing if I was to lend you £1.

You are 54, and want a long term loan to buy a house? We are only talking a few million baht here, you are supposed to be in the age group that can finance small purchases like this by yourself.

It would worry me even further if I were a Thai bank manager, that a 'rich' farang such as yourself needs to borrow this money, and then ask for a longer repayment term to make the repayments affordable!!

Go home if you are that skint.

While your perspective from the bank manager's position are valid there's no reason to take this sort of tone. I've got sufficient assets thanks. I just have my own financial planning and personal reasons to want to do this this way.