Expats Can Get Condo Loans From Bangkok Bank

[george]

BUYING A CONDO

BBL scheme woos foreigners

Expats can get loans from its S'pore branch

BANGKOK: -- It is not uncommon for foreigners to buy a condominium in Thailand, but so far it has been quite difficult for them to seek a mortgage.

That is set to change.

Expats who want to own condominiums in Thailand can now ask for mortgages through Bangkok Bank's Singapore branch, but the initial process can be done at branches in Thailand. Bangkok Bank (BBL) is the only bank offering such a facility to foreigners.

Under the current law, foreigners are not allowed to own land but they can own a condominium if not more than 49 per cent of the units are foreign owned. For example, if there are 100 units in a condominium project, only 49 units can be sold to foreigners.

However, the Bank of Thailand (BOT) does not allow banks in Thailand to lend directly to foreigners. Expatriates wanting to own a condominium have had to transfer their money from overseas, or save in order to buy, which may take a long time and waste money on rental costs before they can get their new homes.

BBL requires borrowers to buy homes priced at least US$300,000 (Bt9.64 million) or equivalent, while offering a credit line of around 70 per cent of the price but not lower than $200,000 or equivalent.

Loans will be given in three currencies, US dollars, Singapore dollars, and euros.

The mortgage rates depend on the currency. They are: US dollars - prime lending rate (5.0 per cent) plus 1.5 per cent per annum, or 6.5 per cent; Singapore dollars - prime lending rate (6 per cent) plus 1.5 per cent, or 7.5 per cent; and euros - prime lending rate (6.5 per cent) plus 1.5 per cent, or 8 per cent. These rates are as of last Monday.

The maximum term of a loan is 20 years but the term plus the borrower's age shall not be over 65 years.

Because lending to foreigners involves high risk and there are few competitors, the bank cannot lend more than 70 per cent of the purchase price.

The bank also needs to quote floating interest rates, while the property asset will be pledged as loan collateral.

Borrowers also have to pay $2,000 in front-end fees, which are payable in two stages.

There is a non-refundable $200 fee when submitting a loan application, and the remaining $1,800 is to be paid when the letter of offer is accepted.

If there are any amendments after loan approval, the borrowers must pay $120. There are also prepayment fees, which are charged at 1.5 per cent of the prepaid amount and a cancellation fee, which is charged at 1.5 per cent of the loan approval amount.

Other expenses, including legal costs, valuation fees, fire insurance premiums and others must also be paid by borrowers. Documents required are a completed mortgage loan application form; copy of identification card (front and back) or the essential pages of the passport; signed copy of sales and purchase agreement or reserve agreement; a bank's reference letter addressed to BBL to confirm the banking relationship and type of account, size of loan and deposits with the bank; the last six months' bank statements; and a credit bureau report from the country of residence.

Individuals earning a monthly salary need an employer's letter addressed to BBL, confirming position, period of experience, and remuneration; income tax returns from the last two years; the last six months' computerised pay-slips; and a work permit for those working in Thailand.

Self-employed individuals need the last two years' balance sheets as well as a profit and loss statement and the last two years' income tax returns.

Foreigners looking for a second home and who are interested in this mortgage can ask for more information at the bank's head office.

Everything will be done in Thailand through BBL's cooperation with its branch in Singapore. If all required documents are submitted correctly, the approval process may take only two weeks. Customers do not need to travel to Singapore as the bank will process the application.

--The Nation 2008-05-28

[LaoPo]

Very very risky for the expat who wishes to buy a US $ 300.000 apartment.

Very risky - very expensive money (floating mortgage interest rates), after an initial down payment of $ 90.000 + extra costs

I doubt if there will be a big market, anybody ?

LaoPo

[Kerryd]

BBL requires borrowers to buy homes priced at least US$300,000 (Bt9.64 million) or equivalent, while offering a credit line of around 70 per cent of the price but not lower than $200,000 or equivalent.

You have to borrow at least $200,000 US ! At a current (but floating) interest rate of 6.5%.

The maximum term of a loan is 20 years but the term plus the borrower's age shall not be over 65 years.

So, if you are 45 you can get a 20 year term. If you are 55 you can only get a 10 year mortgage. If you are already 65, forget it.

I expect to have that much in the bank in 4-5 years, and will just pay cash outright rather than buy now and pay all that interest (and end up having to work 4-5 years longer to pay off the mortgage).

Just imagine the kind of trouble you could get into, with a $200,000 mortgage, if the condo market takes a slump (or the dollar takes a nose-dive, or the new/next government changes some rules, etc, etc).

[froggshw]

There will of course be some plum that buys into this...same as there are plums that send bar girls money every month

[BusyBee123]

Very very risky for the expat who wishes to buy a US $ 300.000 apartment.

Very risky - very expensive money (floating mortgage interest rates), after an initial down payment of $ 90.000 + extra costs

I doubt if there will be a big market, anybody ?

LaoPo

Well apart from the exchange rates and the volatile thai market my figures say this is insane.

If you bought a condo for £150k and paid 30% you would have a mortgage of £105k. With interest at 6.5% stated above you would have to clear £6825 in intrest before you even thought of chipping into the capital thats 423,000 baht per year or 35.000 per month in intrest. Think I would be happy to keep renting and have the freedom to change places when i felt like it.

[MyNameMe]

Very interesting topic especailly when I'm just getting a loan to buy a condo through UOB... Total 1.3 Million Baht (10% deposit paid).... applied in BKK, money is coming from Singapore. Sound's familiar, but the minimum for me was 500,000 Baht not 9.64M!!!!

What are BBL thinking? 9.64M MINIMUM... Thai logic coming into play again trying to 'attract' all those rich foreigners...

just my 2 baht's worth

Mark99th

[skooldaze]

Very interesting topic especailly when I'm just getting a loan to buy a condo through UOB... Total 1.3 Million Baht (10% deposit paid).... applied in BKK, money is coming from Singapore. Sound's familiar, but the minimum for me was 500,000 Baht not 9.64M!!!!

What are BBL thinking? 9.64M MINIMUM... Thai logic coming into play again trying to 'attract' all those rich foreigners...

just my 2 baht's worth

Mark99th

Your deal sounds much more down to earth. I can't imagine spending $200,000 on a condo since one can't own land here and the interest rate is usury considering currently low rates on offer to locals. Just another case of the MAN keeping the farang down.

[malcy]

BBL requires borrowers to buy homes priced at least US$300,000 (Bt9.64 million) or equivalent, while offering a credit line of around 70 per cent of the price but not lower than $200,000 or equivalent.

You have to borrow at least $200,000 US ! At a current (but floating) interest rate of 6.5%.

The maximum term of a loan is 20 years but the term plus the borrower's age shall not be over 65 years.

So, if you are 45 you can get a 20 year term. If you are 55 you can only get a 10 year mortgage. If you are already 65, forget it.

I expect to have that much in the bank in 4-5 years, and will just pay cash outright rather than buy now and pay all that interest (and end up having to work 4-5 years longer to pay off the mortgage).

Just imagine the kind of trouble you could get into, with a $200,000 mortgage, if the condo market takes a slump (or the dollar takes a nose-dive, or the new/next government changes some rules, etc, etc).

just rent then you can't get into trouble ! keep your money in the bank . why anybody would risk money in this financially unstable and corrupt part of the world is beyond me.

[srgoldie]

Wow, sounds great. I'll get down to BBL in the morning.

Oh, what's that smell?

[zorro1]

Very very risky for the expat who wishes to buy a US $ 300.000 apartment.

Very risky - very expensive money (floating mortgage interest rates), after an initial down payment of $ 90.000 + extra costs

I doubt if there will be a big market, anybody ?

LaoPo

Well apart from the exchange rates and the volatile thai market my figures say this is insane.

If you bought a condo for £150k and paid 30% you would have a mortgage of £105k. With interest at 6.5% stated above you would have to clear £6825 in intrest before you even thought of chipping into the capital thats 423,000 baht per year or 35.000 per month in intrest. Think I would be happy to keep renting and have the freedom to change places when i felt like it.

Comon now we ALL know everyone who says that cant afford not to rent

[Meerkat]

Wasn't this scheme (or a similar one) started by BBL Sing three years or so ago? Why the fanfare now?

[nomoretalksin]

I don't want to scare you off, or space-shuttle your dreams, but apparently for example Bangkok will

be (possibly) anyway under water in 15-20years. According to Khun Smith, who predicted the Tsunamie

in Phuket etc, but nobody listened to his warnings.

Question to all future investors (near seas and rivers etc.)

Sure you (we) wanna invest your money in Bangkok in such property investments??

Read the other TV-thread regarding: "Instable Climate Change & Rising Sea Levels" here: http://www.thaivisa.com/forum/index.php?s=...t&p=2002144

any comments on the sinking feeling topic, please post there...thanks

Edited May 28, 2008 by nomoretalksin

[AFKAFSinLOS]

In wonder why this article has made the newspaper, saying "now you can get..."

Bangkok Bank have been doing this for ages. They are not the only bank either as UOB also do... I assume the "bit" that is different, is that you can kick off the process from Thailand instead of going direct thru Singapore

Edited May 28, 2008 by AFKAFSinLOS

[jmsbkk]

Actually, I got a loan from Bangkok Bank (in Bangkok) as long ago as 2001. It was for a 64 sq metre apartment in central Bangkok that cost 2 million baht and the loan was for 1.2 million baht. I got it with the click of a finger. Of course, in 2001 they were desperately trying to get the property market re-activated; however, it just shows that anything is possible in Thailand even when you're told that it's not!!

JMS

[deankham]

Very interesting topic especailly when I'm just getting a loan to buy a condo through UOB... Total 1.3 Million Baht (10% deposit paid).... applied in BKK, money is coming from Singapore. Sound's familiar, but the minimum for me was 500,000 Baht not 9.64M!!!!

What are BBL thinking? 9.64M MINIMUM... Thai logic coming into play again trying to 'attract' all those rich foreigners...

just my 2 baht's worth

Mark99th

Hi Mark99th,

Can you share any more details of the deal your getting from UOB - i.e Rates / Fees / Duration / etc.

..Sounds a lot more realistic than the BBL deal.

Thanks

[onethailand]

Wasn't this scheme (or a similar one) started by BBL Sing three years or so ago? Why the fanfare now?

The difference is that now you can apply through a BBL branch in Thailand. Before you had to apply directly to the Singapore branch.

6.5% is a bit steep though, especially at such a high minimum loan size.

[Prakanong]

In wonder why this article has made the newspaper, saying "now you can get..."

Bangkok Bank have been doing this for ages. They are not the only bank either as UOB also do... I assume the "bit" that is different, is that you can kick off the process from Thailand instead of going direct thru Singapore

Bangkok Bank did stop for a bit but UOB seemed to carry on but were not advertising it in the Singapore papers regularly as they once were.

I did think you had to put more than 10% down in UOB as well but a poster above say's 10%

[Capealava]

Very very risky for the expat who wishes to buy a US $ 300.000 apartment.

Very risky - very expensive money (floating mortgage interest rates), after an initial down payment of $ 90.000 + extra costs

I doubt if there will be a big market, anybody ?

LaoPo

Who are these people who want a $300,000 dollar Condo. If they are thinking that high they have the money anyway. What about us normal expat's -how about a 3,000,000 baht loan. Thai's just think we are all rich fellows-the girl's included. Whatever, I will keep renting

[Journalist]

A friend of mine who is a multi-millionaire hedge fund manager applied some months ago under this BBL scheme in Singapore to fund 50% of an THB 35million condo he is buying. And last week after months of to-ing and fro-ing, and ostensibly encouraging signs, they nixed it.

ps he is a closet gay, so that might have something to do with the loan refusal

Edited May 28, 2008 by Journalist

[Ground Engineer]

£1000 set up fees. No ta.

[thaigene2]

I just knew when I scrolled down to the end of this news report it would be the Nation. That slut of a property-hype publication. It's all that rag has left. Bullsh+t property hype reports in its new 'business' format - and anti-PPP rhetoric to please the well-healed Thai chattering classes. What's next Society Pages with photos of Generals' daughters? Maybe buying condos..??

Most of us know that Bangkok Bank Singapore was lending til just before the coup, freaked out and stopped lending. Now they're at it again - but they ARE NOT THE ONLY BANK doing this. I believe UOB and Standard Chartered and HSBC pushed back in a few months back for foreigners resident here - and you don't even need to go abraod - they'll do it for you here - they help you get around this "importing 100% of the money" thing too.

So nice try Nation - but hey - did anyone notice if there was a Bangkok Bank advert anywhere near this "News" report??

They are sooo on their way out of business, aren't they - what a mistake to change formats like this. It's such crap.

Oh and one other MAJOR point - they may lend you the money to buy, but that doesn't mean Thailand will let you actually live in it more than 6 months a year - a warning. Sort your visa BEFORE you sort your mortgage!!

Edited May 28, 2008 by thaigene2

[Tengkorak]

There will of course be some plum that buys into this...same as there are plums that send bar girls money every month

Yaya....Bangkok will be under water in 20 years. There are many things in Thailand that sounds too "nice".

[kauailance]

I just knew when I scrolled down to the end of this news report it would be the Nation. That slut of a property-hype publication. It's all that rag has left. Bullsh+t property hype reports in its new 'business' format - and anti-PPP rhetoric to please the well-healed Thai chattering classes. What's next Society Pages with photos of Generals' daughters? Maybe buying condos..??

Most of us know that Bangkok Bank Singapore was lending til just before the coup, freaked out and stopped lending. Now they're at it again - but they ARE NOT THE ONLY BANK doing this. I believe UOB and Standard Chartered and HSBC pushed back in a few months back for foreigners resident here - and you don't even need to go abraod - they'll do it for you here - they help you get around this "importing 100% of the money" thing too.

So nice try Nation - but hey - did anyone notice if there was a Bangkok Bank advert anywhere near this "News" report??

They are sooo on their way out of business, aren't they - what a mistake to change formats like this. It's such crap.

Oh and one other MAJOR point - they may lend you the money to buy, but that doesn't mean Thailand will let you actually live in it more than 6 months a year - a warning. Sort your visa BEFORE you sort your mortgage!!

300,000 US$ Buys more Thai delicacies than any man can consume in 15 years!!!

[Huey]

I bought my condo pre-launch, in my Thai Amity Company's name. It will be finished in June and I will have paid 25% of the 15.5mil Baht of the total. I wonder if;

a. I can get a lower loan rate In my company name than in my personal name

b. If I need to make, or buy pre-existing a 100% Thai company to put the loan in and then own the Thai company with my Thai Amity company to get the best rate

c. They will even give me the loan in a company name

[micman]

Looks like the same kind of loans that have turned the Mortgage and Housing market upside down in the US.

[Prakanong]

Looks like the same kind of loans that have turned the Mortgage and Housing market upside down in the US.

Nah - you were getting a lot more than 70% of the price in the USA - that was a major part of the problem and why people just walk away

[MaiChai]

Haha, what a joke. Lets rip the foreigner off who is besotted with Thailand.

Why won't the BOT allow banks to lend to foreigners? If the loan is secured, what does it matter?

Thailand is for Thais and foreigners are for giving money to Thais

[Mekong Bob]

Can we also discuss the current Thai bank loan situation for expats with Thai wives who want to build a home?

If a discussion is already underway on this forum, I have not found it.

Where are the best home loan rates at this time? Bangkok Bank? Krung Thai Bank? Looking for a 5 million baht loan, repaid over maximum of 10 years, to build a home.

A crash course on MRR versus MLR calculations would be most appreciated, along with comments on how much these rates have fluctuated in recent years, and how much they can change during the life of my loan. I guess there's no such thing as a fixed-rate mortgage loan these days in Thailand.

[Tony Clifton]

A USD $300,000 condo must be the perfect place to keep your elite card.

[Zappadappa]

I don't want to scare you off, or space-shuttle your dreams, but apparently for example Bangkok will

be (possibly) anyway under water in 15-20years. According to Khun Smith, who predicted the Tsunamie

in Phuket etc, but nobody listened to his warnings.

Question to all future investors (near seas and rivers etc.)

Sure you (we) wanna invest your money in Bangkok in such property investments??

Read the other TV-thread regarding: "Instable Climate Change & Rising Sea Levels" here: http://www.thaivisa.com/forum/index.php?s=...t&p=2002144

any comments on the sinking feeling topic, please post there...thanks

Holland has been under water for years!