Loan - Advice Needed

[somluck]

It seems to me housing loans are very hard to get?

My gf is thinking of buying a condo but getting a loan is proving to be quite hard. According to her, for new developments (newly launch condos) its easy to get loans but for older condos unless you plonk down more than 30-50% of downpayment its impossible. Another way i have heard is to spend some bribe money to get in touch with a bank's loan manager. And the 'commission' due is relative to the amount of the loan. And the rate it seems starts at 20K.

Currently we are looking at the condos in town-in-town area price is between 1-2 million. I this a fact? My gf is from upcountry so not savvy to such things.

Edited September 16, 2009 by somluck

[InterestedObserver]

GF from upcountry and not savvy in such things. Is she savvy enough to get you to pay?

[Farma]

I can't see how "commission" to the bank loan officer would help. All loan applications would normally go through the bank loan officer and then be forwarded to head office.

I believe the loan approval is made at bank headquarters in Bangkok.

[hhgz]

"My gf is from upcountry so not savvy to such things."

Reading your post, it's obvious that you are none too savvy, either.

[trogers]

Keyword -gf!

This means her mortgage application rests only on her ability to repay the loan. A rule of thumb - monthly repayment amount x 3 must be her present monthly income from a secure job.

If she is your wife, you can add in your income to make the application, but since she is only a gf, only her income can be evaluated.

[somluck]

Thanks for all the replies, including the sarcastic ones.

My gf is running a business and now to establish her credit rating she has gotten her family to transfer ownership of a restaurant upcountry and a spa salon in bkk to her name. Every month for the last half year she has diligently and regularly deposit fixed sums of money (50 - 100k) monthly in her account to show 'profibility' in her businesses, she claims this way works.

I have checked with other Thai friends (friends not related to her) and apparently banks and more eager to grant loans to new developments rather than 2nd hand condos. The bribe thingy is very common too apparently and its someone more senior than a loans officer, more like a bank branch manager. So does managers have the power to grant loans? Soneone mentioned loans go thru the head office.

I dun work in Thailand so I cannot apply for a loan in Thailand but my country has regular property launches and I can take a loan for an overseas property but problem is I cannot include my gf as co-owner.

So other than going for new condos (my gf says they are all too far and those new launches that are not far are too expensive for me)

[Farma]

The loan process my wife (then girlfriend) went though involved applying for the loan at the local bank.

First she provided all the financial details the bank required including business and land ownership documents, tax receipts plus records of saving. The bank then sent out an independent assessor to value the property we were hoping to purchase.

The loans officer then passed the recommendation on to the branch manager for approval and recommendation. The loan application was then sent to head office in Bangkok for loan approval.

Approval took a few weeks. We were told by the bank that the head office has a panel of loans managers who meet weekly to approve loans. Our branch informed us of the loan approval once they received a reply approving the loan from Bangkok head office.

There are also loan quotas for different areas. Our bank branch was keen to loan in our area as they didn’t have any outstanding loans there at the time.

[trogers]

I have checked with other Thai friends (friends not related to her) and apparently banks and more eager to grant loans to new developments rather than 2nd hand condos.

I done away with delays by first paying cash to acquire an old condo under my wife's name and then applied for a mortgage after title has been transferred.

Two issues have to be studied by the bank with such a mortgage application:

Valuation of market value of the condo unit - its location, condition and finishes of the interior area, the condition of the common areas, facilities, etc. Loan amount is usually limited to 70-75% of market value.

Ability of borrower to repay, age and period of loan.

[trogers]

I have checked with other Thai friends (friends not related to her) and apparently banks and more eager to grant loans to new developments rather than 2nd hand condos.

I done away with delays by first paying cash to acquire an old condo under my wife's name and then applied for a mortgage after title has been transferred.

Two issues have to be studied by the bank with such a mortgage application:

Valuation of market value of the condo unit - its location, condition and finishes of the interior area, the condition of the common areas, facilities, etc. Loan amount is usually limited to 70-75% of market value.

Ability of borrower to repay, age and period of loan.

I used Kasikorn bank. No commission is required. Total time taken from application to approval is about 3 weeks.