Mortgage With Thai Banks (uob Bank, Gov. Savings Bank, Tmb Bank)

[rhino533]

My wife and I are trying to choose a good Bank with lower interest to go get a 1.3m Baht mortgage to build our house. The mortgage will be in my wifes name and she has an income over 60,000baht and great credit so there shoudlen't be any problems regarding salary. One bank I'm staying away from is SCB just because they have a really high interest rate. There are a few I'm interested in, UOB and TMB Banks anyone have any experience using these banks? Also maybe Government Savings bank, any experience? We are looking for a bank easy to deal. Some banks are just a pain in the ***. I actually priced out the interest for a lot of banks.

Here is what I figure. Cheapest interest to the most expensive:

1. TMB bank is the cheapest but are hard to deal with.

2. Standard Charter (only grants loans for pre made housing)

3. UOB ( I'm very interested in this bank)

4. Gov. Savings Bank

5. Kasikorn Bank

6. Bangkok Bank

7. Krungthai Bank

8. SCB Bank

I've already gone to visit TMB, SCB, Standard Charter, Kasikorn, Krungthai, SCB, Government Savings banks and so far the easiest ones to deal so far have been Kasikorn and Gov Savings Banks. I haven't applied for any loan yet just trying to pick the best bank and easiest to deal with. I haven't been to UOB yet just talked with them on the phone and they seem ok. I have done quite a bit of research but thought I would ask here and see what people have to say. Any comments would be great. Thanks!!

[trogers]

My wife secured a Bt1.2m mortgage on 10-year terms from Kasikorn Bank. We also made enquires with SCB, Bangkok Bank, Auuthaya and Tanachart. Kasikorn gives the most competitive rate for a commercial bank.

[rhino533]

My wife secured a Bt1.2m mortgage on 10-year terms from Kasikorn Bank. We also made enquires with SCB, Bangkok Bank, Auuthaya and Tanachart. Kasikorn gives the most competitive rate for a commercial bank.

Thanks for the reply, when we met with Kasikorn Bank they seemed ok, the interest is ok for a Commercial Bank. We also want a 10yr mortgage. How long did it take to get approved for your loan?

[trogers]

Within 10 working days after property valuation.

Took about 7 working days from submitting financial papers to property valuation. So, a total of about 3 weeks from application for mortgage.

Edited March 27, 2009 by trogers

[Forkinhades]

You will find it very difficult indeed to get loan to build a house

[rhino533]

You will find it very difficult indeed to get loan to build a house

Why do you think it's going to be difficult? My wife should pass all the requirements and the land we bought is worth 3,200,000 baht. We are just asking for a 1.3M Baht loan. The land itself should cover the loan amount. No?

[trogers]

You will find it very difficult indeed to get loan to build a house

Probably the bank will release the loan in instalments to follow the progress of construction. But you will need upfront cash to finance advance payments and securing materials before the loan kicks in.

[rhino533]

You will find it very difficult indeed to get loan to build a house

Probably the bank will release the loan in instalments to follow the progress of construction. But you will need upfront cash to finance advance payments and securing materials before the loan kicks in.

Yeah, the bank will come and check the progress of the house before giving us any money. They will give 3 or 4 payment installments depending on the progress. So that means we will have to use our own money in the beginning to start building the house. Which is fine, as long as I know we have secured the loan. The Bank will be slow to give the money forsure I'm expecting that.

[rhino533]

My wife and I are trying to choose a good Bank with lower interest to go get a 1.3m Baht mortgage to build our house. The mortgage will be in my wifes name and she has an income over 60,000baht and great credit so there shoudlen't be any problems regarding salary. One bank I'm staying away from is SCB just because they have a really high interest rate. There are a few I'm interested in, UOB and TMB Banks anyone have any experience using these banks? Also maybe Government Savings bank, any experience? We are looking for a bank easy to deal. Some banks are just a pain in the ***. I actually priced out the interest for a lot of banks.

Here is what I figure. Cheapest interest to the most expensive:

1. TMB bank is the cheapest but are hard to deal with.

2. Standard Charter (only grants loans for pre made housing)

3. UOB ( I'm very interested in this bank)

4. Gov. Savings Bank

5. Kasikorn Bank

6. Bangkok Bank

7. Krungthai Bank

8. SCB Bank

I've already gone to visit TMB, SCB, Standard Charter, Kasikorn, Krungthai, SCB, Government Savings banks and so far the easiest ones to deal so far have been Kasikorn and Gov Savings Banks. I haven't applied for any loan yet just trying to pick the best bank and easiest to deal with. I haven't been to UOB yet just talked with them on the phone and they seem ok. I have done quite a bit of research but thought I would ask here and see what people have to say. Any comments would be great. Thanks!!

[skybluestu]

You will find it very difficult indeed to get loan to build a house

Probably the bank will release the loan in instalments to follow the progress of construction. But you will need upfront cash to finance advance payments and securing materials before the loan kicks in.

Yeah, the bank will come and check the progress of the house before giving us any money. They will give 3 or 4 payment installments depending on the progress. So that means we will have to use our own money in the beginning to start building the house. Which is fine, as long as I know we have secured the loan. The Bank will be slow to give the money forsure I'm expecting that.

Similar situation to myself a few months ago, land + house in total was 2.5M and I eventually borrowed 1M. Most banks said come back and apply again when it was finished as they didn't want to lend for a new build, not sure where they thought I would get the money from in order to do that, I wouldn't have been asking them for a home loan if I could build it without one! My house isn't a one-off, it's one of x12 on a small project and BKK Bank had told the Project manager they would be happy to lend if buyers there needed a home loan. To cut a very long story short, we got 1M baht over 10yrs but they said no twice, they initially said they would lend 60% but then the bods down in BKK said no so we asked for 50%, the guy in our local branch said 50% would be no problem but then the bods in BKK said no again so we eventually had to settle for 1M which is 40%. They are paying in installments and checking on the progress of the house and have now paid x3 out of the x4 installments. The first application was made in October 2008 and it was finally approved in Feb 2009. Good Luck, if it's anything like my experience you'll need it!

[rhino533]

You will find it very difficult indeed to get loan to build a house

Probably the bank will release the loan in instalments to follow the progress of construction. But you will need upfront cash to finance advance payments and securing materials before the loan kicks in.

Yeah, the bank will come and check the progress of the house before giving us any money. They will give 3 or 4 payment installments depending on the progress. So that means we will have to use our own money in the beginning to start building the house. Which is fine, as long as I know we have secured the loan. The Bank will be slow to give the money forsure I'm expecting that.

Similar situation to myself a few months ago, land + house in total was 2.5M and I eventually borrowed 1M. Most banks said come back and apply again when it was finished as they didn't want to lend for a new build, not sure where they thought I would get the money from in order to do that, I wouldn't have been asking them for a home loan if I could build it without one! My house isn't a one-off, it's one of x12 on a small project and BKK Bank had told the Project manager they would be happy to lend if buyers there needed a home loan. To cut a very long story short, we got 1M baht over 10yrs but they said no twice, they initially said they would lend 60% but then the bods down in BKK said no so we asked for 50%, the guy in our local branch said 50% would be no problem but then the bods in BKK said no again so we eventually had to settle for 1M which is 40%. They are paying in installments and checking on the progress of the house and have now paid x3 out of the x4 installments. The first application was made in October 2008 and it was finally approved in Feb 2009. Good Luck, if it's anything like my experience you'll need it!

Did you try any other Banks or just Bangkok Bank? Was the loan for the land + the house or did you already own the land?

[bungy007]

My wife and I are trying to choose a good Bank with lower interest to go get a 1.3m Baht mortgage to build our house. The mortgage will be in my wifes name and she has an income over 60,000baht and great credit so there shoudlen't be any problems regarding salary. One bank I'm staying away from is SCB just because they have a really high interest rate. There are a few I'm interested in, UOB and TMB Banks anyone have any experience using these banks? Also maybe Government Savings bank, any experience? We are looking for a bank easy to deal. Some banks are just a pain in the ***. I actually priced out the interest for a lot of banks.

Here is what I figure. Cheapest interest to the most expensive:

1. TMB bank is the cheapest but are hard to deal with.

2. Standard Charter (only grants loans for pre made housing)

3. UOB ( I'm very interested in this bank)

4. Gov. Savings Bank

5. Kasikorn Bank

6. Bangkok Bank

7. Krungthai Bank

8. SCB Bank

I've already gone to visit TMB, SCB, Standard Charter, Kasikorn, Krungthai, SCB, Government Savings banks and so far the easiest ones to deal so far have been Kasikorn and Gov Savings Banks. I haven't applied for any loan yet just trying to pick the best bank and easiest to deal with. I haven't been to UOB yet just talked with them on the phone and they seem ok. I have done quite a bit of research but thought I would ask here and see what people have to say. Any comments would be great. Thanks!!

Just be very, very careful who you contract to as the Thais are famous for all kinds of tricks such as buying low quality materials and re-packaging them for you to see and pay top brand named prices. Also, they are famous for doing a runner with the cash. I believe that this is one of if top the most common consumer complaint in thailand according to a survey I read a few years ago.

The neighbours have built a house (only see a contractor now and again and no sign of the neighbours). Man, watching those issan boys at 'work' does not fill me with any confidence in the integrity of the structure and their sense of 'finish' is a kin to an Aussie sheep shearers dunny.

Good luck

Edited March 28, 2009 by bungy007

[ignis]

We have are mortgage with GHB, decided to have a 1m loan when the house was 1/2 built, was no problem

http://www.ghbank.co.th/en/index.html

There also giving a good interest rate on Fixed Term savings

Edited March 28, 2009 by ignis

[skybluestu]

Did you try any other Banks or just Bangkok Bank? Was the loan for the land + the house or did you already own the land?

Yes we also tried SCB but they said no but to apply again when the house is finished, they don't like to lend for new builds. The loan was for land + house combined and they keep the chanotes until the loan is paid off.

[tvaddict]

my wife and I got a loan from UOB

no probes at all

new build house on a good estate and the manager helped set up the deal

85% loan over 10 yrs

3m baht home

my wife was working and passed the min requirements in salary (20Kpm) plus-

showed contract , bank bok, wage slips

same for me plus work permit

very easy really- took a month- application made at local bank, waited for head office in bk to approve it, valuation done

, papers signed and a visit to the land office needed to transfer the chanote deed( now in bank safe)

we had been turned down previously by SCB who don't like to take the risk of having a foreigner being the gaurantor.

i reckon the UOB are easier on this issue largely because they themselves are a singaporian bank plus they aresmaller and looking to expand into the thai market

lots of people on my village have used UOB - never heard anything bad said

just a shame they don't lower the interest rate now that the central bank has-- but that's a criticism of all banks here!!!

[hhgz]

"My wife and I are trying to choose a good Bank..."

Why not have your wife ask her friends for a recommendation?

[george25]

Hi,

end of last year my wife got a loan from SCB for land purchase without any problem.

We borrowed 1M THB (about 45% of land price) for 10 years, my wife has no income and I am the farang guarantor. The rates were competitive to other banks and the monthly payment conditions are very flexible. In fact we are planning to pay the loan back within 2 years (no penalty fees) before starting to build the house (for which we would need another loan).

Cheers,

George

[ThaiVisaExpress]

What was the interest rate ?