Existing Property As Colateral

[emsfeld]

Wanted to know what your experiences are with banks accepting 100% equity owned property as colateral for mortgages on new properties?

From what I have heard a steady income stream weighs heaviest on their decision to extend loans, but what if your property at current market value is worth, say, 120% of the one you are planning to finance and you are to put that down as colateral?

Does that skew the weighting more to the colateral or would they still place more weight on the steady income component?

[emsfeld]

Over 50 views and no one has had any experiences doing this? I am surprised.

The reason I am asking is that my fiance and I both dont earn an income in Thailand and could potentially only use a condo as colateral and/or have the rental payments arising from the existing condo as a steady income stream to show.

[stgrhe]

Over 50 views and no one has had any experiences doing this? I am surprised.

Probably because nobody has an answer to your question whether it is possible or not.

[trajan]

I managed to get a mortgage loan from UOB Thailand Bank on an existing condo title deed I owned, but:

(a) the condo building in question was brand new (and the condo title just transferred to me)...this seemed to matter alot to the bank...and

(b ) the bank examined history of salary payments to get comfortable with capability to repay the mortgage fixed term loan (and revolving home equity line of credit)...

(by the way, HSBC Thailand said they could only finance a condo purchase (but not a refinance situation or a mortgage loan on an already owned title deed)...

Edited September 14, 2009 by trajan

[emsfeld]

I managed to get a mortgage loan from UOB Thailand Bank on an existing condo title deed I owned, but:

(a) the condo building in question was brand new (and the condo title just transferred to me)...this seemed to matter alot to the bank...and

(b ) the bank examined history of salary payments to get comfortable with capability to repay the mortgage fixed term loan (and revolving home equity line of credit)...

(by the way, HSBC Thailand said they could only finance a condo purchase (but not a refinance situation or a mortgage loan on an already owned title deed)...

Thanks for the info, trajan. Rather interesting your experience. Probably the Asian crisis is still a very vivid image in their minds, hence the distrust towards market value based assessments of property values.