Home Loan Question

[xm911e3]

Hi, I've a question regarding home loan. Long story short, today I went to Bangkok Bank with my girlfriend to enquire about taking a home loan.

Interest rate is 2% per annum which seems kinda ok. The bank says they can loan the money to my thai girlfriend and I'm the guarantor

after we're officially married which we'll be in future.

I don't really feel very comfortable about the loan because I'll be the one paying for the monthly mortgage and what if shit happens like we divorce.

I mean who knows what's gonna happen 10 years down the road right. Who is going to have the power to own the condominum?

That will be equilty in the condominum and who is gonna own it?

I've heard many farangs got kicked out of the house by their ex Thai wives and I definately do not want to be in that situation.

Please shed some light here so I've a better understanding of my rights. Thanks alot.

[dave111223]

Note that 2% for the first year doesn't mean 2% per year for the full term.

Both your names can be on the deed for a condominium.

[xm911e3]

Note that 2% for the first year doesn't mean 2% per year for the full term.

Both your names can be on the deed for a condominium.

Yep I understand that the 2% is for the first year only. As for the subsequent years, it's capped at 2.5% per annum.

If both our names are in this condo, does that mean even shit happens, she cannot kick me out of the house?

BTW, I heard of some farangs talking in the local bar that you're able to sign a contract like this house can only be sold after 30 years... something like that.. I ain't very sure. Anyone here heard about this law, please enlighten me. Thanks alot from up north.

[somtampet]

Note that 2% for the first year doesn't mean 2% per year for the full term.

Both your names can be on the deed for a condominium.

Yep I understand that the 2% is for the first year only. As for the subsequent years, it's capped at 2.5% per annum.

If both our names are in this condo, does that mean even shit happens, she cannot kick me out of the house?

BTW, I heard of some farangs talking in the local bar that you're able to sign a contract like this house can only be sold after 30 years... something like that.. I ain't very sure. Anyone here heard about this law, please enlighten me. Thanks alot from up north.

I have a house under my thai gf name purely because i had to buy quick,as i was offered a great bargain.My gf and i(6 years living together) signed a life term partnership agreement that if we split,she would get half the value,only right after a long term relationship,and nothing else.I did 2 last will and testament too,saying if she died first i would get the property to live in or sell,depending if the law is still in force regarding having a house in a thai company.Dont forget because we are not married the house could have gone to her mum,or brothers.Her will is leaving the land/property to me with a thai clause saying i have to sell within 1 year if laws change.

[clinique]

there are 2 documents available at the land department which allow YOU life long usage of the property, 1 is a Ususfruct, the other i cant remeber the name,, lodge that as well,,to ensure you have right of occupancy.. AND if you are paying the deposit make sure the RECEIPT is in your name and the bank records reflect saem,, even if you go to court (hope not) this indicates to the court that YOU were the one who funded the deal.

[xm911e3]

I have a house under my thai gf name purely because i had to buy quick,as i was offered a great bargain.My gf and i(6 years living together) signed a life term partnership agreement that if we split,she would get half the value,only right after a long term relationship,and nothing else.I did 2 last will and testament too,saying if she died first i would get the property to live in or sell,depending if the law is still in force regarding having a house in a thai company.Dont forget because we are not married the house could have gone to her mum,or brothers.Her will is leaving the land/property to me with a thai clause saying i have to sell within 1 year if laws change.

Is the purchase of your house tied with a mortgage?

By the way, is it possible for me to take a home loan from the bank to purchase a condominum if my girlfriend and I signed the " Life Term Partnership Agreement? " I mean at least we don't need to rush into marriage for the sake of buying a condominum.

[somtampet]

I have a house under my thai gf name purely because i had to buy quick,as i was offered a great bargain.My gf and i(6 years living together) signed a life term partnership agreement that if we split,she would get half the value,only right after a long term relationship,and nothing else.I did 2 last will and testament too,saying if she died first i would get the property to live in or sell,depending if the law is still in force regarding having a house in a thai company.Dont forget because we are not married the house could have gone to her mum,or brothers.Her will is leaving the land/property to me with a thai clause saying i have to sell within 1 year if laws change.

Is the purchase of your house tied with a mortgage?

By the way, is it possible for me to take a home loan from the bank to purchase a condominum if my girlfriend and I signed the " Life Term Partnership Agreement? " I mean at least we don't need to rush into marriage for the sake of buying a condominum.

I paid cash for the house,with all receipts under my name.If you buy a condo you can buy in your sole name so no need to get married but thats cash transaction,not sure about a farang having a loan unless you have a good job here.

[clinique]

for condo purchase you need to bring ALL money from overseas ?!

or try these guys, www.secondhomechiangmai.com

[dave111223]

Note that 2% for the first year doesn't mean 2% per year for the full term.

Both your names can be on the deed for a condominium.

Yep I understand that the 2% is for the first year only. As for the subsequent years, it's capped at 2.5% per annum.

If both our names are in this condo, does that mean even shit happens, she cannot kick me out of the house?

BTW, I heard of some farangs talking in the local bar that you're able to sign a contract like this house can only be sold after 30 years... something like that.. I ain't very sure. Anyone here heard about this law, please enlighten me. Thanks alot from up north.

Capped at 2.5% does not sound right? Where you finding this rate from, Bangkok Bank website is currently quoting a rate of 5.875 %

http://www.bangkokbank.com/Bangkok%20Bank/...es/Default.aspx

As for the 30 years Ususfruct this is only necessary for buying a house, but you are buying a Condo so you're name is actually on the deed as an owner. So she would not be able to sell the condo without your consent.

[xm911e3]

there are 2 documents available at the land department which allow YOU life long usage of the property, 1 is a Ususfruct, the other i cant remeber the name,, lodge that as well,,to ensure you have right of occupancy.. AND if you are paying the deposit make sure the RECEIPT is in your name and the bank records reflect saem,, even if you go to court (hope not) this indicates to the court that YOU were the one who funded the deal.

Ok so there are 2 documents available at the land department which enables me to life long usage of the property (So if shit happens, she cannot kick me outta the house). Anyone knows the exact name for that 2 pieces of documents?

Thanks alot bro for your info. I'll keep in mind that if a deposit is made, I'll make absolutely sure that the receipt have my name on it.

[clinique]

Note that 2% for the first year doesn't mean 2% per year for the full term.

Both your names can be on the deed for a condominium.

Yep I understand that the 2% is for the first year only. As for the subsequent years, it's capped at 2.5% per annum.

If both our names are in this condo, does that mean even shit happens, she cannot kick me out of the house?

BTW, I heard of some farangs talking in the local bar that you're able to sign a contract like this house can only be sold after 30 years... something like that.. I ain't very sure. Anyone here heard about this law, please enlighten me. Thanks alot from up north.

Capped at 2.5% does not sound right? Where you finding this rate from, Bangkok Bank website is currently quoting a rate of 5.875 %

http://www.bangkokbank.com/Bangkok%20Bank/...es/Default.aspx

As for the 30 years Ususfruct this is only necessary for buying a house, but you are buying a Condo so you're name is actually on the deed as an owner. So she would not be able to sell the condo without your consent.

Advice received from 3 of the largest legal firms (international) in Bkk is IF the Condo is in other than JUST your name use a Usufruct AS WELL,,, the cost is negligable and the added protection will not hurt...

AND TIT ,,soi dont agree that she will not be able to sell without his consent,, even so,,if she ahs the copy of the chanote or house reg book SHE can go out and borrow money fromthe grey market to her hearts content.... that would worry me more....

[clinique]

there are 2 documents available at the land department which allow YOU life long usage of the property, 1 is a Ususfruct, the other i cant remeber the name,, lodge that as well,,to ensure you have right of occupancy.. AND if you are paying the deposit make sure the RECEIPT is in your name and the bank records reflect saem,, even if you go to court (hope not) this indicates to the court that YOU were the one who funded the deal.

Ok so there are 2 documents available at the land department which enables me to life long usage of the property (So if shit happens, she cannot kick me outta the house). Anyone knows the exact name for that 2 pieces of documents?

Thanks alot bro for your info. I'll keep in mind that if a deposit is made, I'll make absolutely sure that the receipt have my name on it.

No problem,, NO MATTER what anyone says make sure that receipt is in your name,,and better still bring the deposit from overseas andmake sure you get the bank to issue the Foreign Exchange receipt shwoing the funds are for deposit for the condo... TIT ,,the more paperwork (official) that you have the safer it is for you...

Edited April 5, 2010 by clinique

[xm911e3]

Capped at 2.5% does not sound right? Where you finding this rate from, Bangkok Bank website is currently quoting a rate of 5.875 %

http://www.bangkokbank.com/Bangkok%20Bank/...es/Default.aspx

As for the 30 years Ususfruct this is only necessary for buying a house, but you are buying a Condo so you're name is actually on the deed as an owner. So she would not be able to sell the condo without your consent.

As for the interest rate capped at 2.5%, it was told to me by my girlfriend because I'm not able to speak Thai so whatever the bank says infront of my girlfriend, I can only understand a little. Yea when she told me capped at 2.5%, I was thinking gezzz that's low man....

Ok if one is buying a house instead of condominum, one would have to use 30 years Ususfruct in order to protect himself. How can 30 years Ususfruct protect me? Can anyone enlighten me please?

Thanks alot.

[JohnC]

With all your worries before you even get married should you not be having second thoughts about marriage at all? Do you really want a mortgage round your neck if it all goes down the pan?

Edited April 5, 2010 by JohnC

[clinique]

Capped at 2.5% does not sound right? Where you finding this rate from, Bangkok Bank website is currently quoting a rate of 5.875 %

http://www.bangkokbank.com/Bangkok%20Bank/...es/Default.aspx

As for the 30 years Ususfruct this is only necessary for buying a house, but you are buying a Condo so you're name is actually on the deed as an owner. So she would not be able to sell the condo without your consent.

As for the interest rate capped at 2.5%, it was told to me by my girlfriend because I'm not able to speak Thai so whatever the bank says infront of my girlfriend, I can only understand a little. Yea when she told me capped at 2.5%, I was thinking gezzz that's low man....

Ok if one is buying a house instead of condominum, one would have to use 30 years Ususfruct in order to protect himself. How can 30 years Ususfruct protect me? Can anyone enlighten me please?

Thanks alot.

the Usufruct is NOT limited to 30 years,,,only long term lease is limited to 30 years... Ususfruct is life long usage while you are the owner of a condo.. it protects YOUR interest as the owner / co-owner and gives you the right to inhabit the property UNLESS you give away allor some of your haitation rights IN WRITING... ie if you bought in a serviced apartment and allowed the manager in writing to let the condo for 3 months ayear ..otherwise YOU have the right to occupy until you die ...

[xm911e3]

Totally agree... This is Thailand and shit happens everyday. She can be nice and loving to you now but we never know what is going to happen few years down the road. Gotta protect myself right from the beginning.

[clinique]

oh, and 2.5% capped is BS... it is only 1 year.. therafter it will be the banks MLR (minimum Lending rate - (less) a margin of maybe 0.5%.. which means itrs a floating ratemortgage at the banks discretion..

if you dont speak Thai and the bank officers are not able to speak english..get then to WRITE it down foryou.. IF they wont, go to another bank...

[richardt1808]

hi,

I think you'd better do some serious searching on this forum. There are loads of horror stories regarding property ownership here and you'd best read them before thinking any further. A couple of points to get you started:

1. In Thai law, any contract entered into between husband and wife can be voided by either party in the event of divorce. There is a long thread on this which you need to read, so dont rely on any simple agreement to protect you. Consider yourself warned. Beware, beware, beware.

2. If you want to buy a condo, buy it yourself. (as mentioned you will need to bring in the funds)

3. Interest rate is not 2.5 percent. It is MLR - X percent. If MLR increases at any point in the future, your interest will also increase.

Seriously, if your money is important to you, search this forum. Dont rely only on the replies you see here. This story has been done to death - in detail. Read all the info and see how big the mountain of BS you are facing.

Beware, beware, beware !!!!

Edited April 5, 2010 by richardt1808

[clinique]

hi,

I think you'd better do some serious searching on this forum. There are loads of horror stories regarding property ownership here and you'd best read them before thinking any further. A couple of points to get you started:

1. In Thai law, any contract entered into between husband and wife can be voided by either party in the event of divorce. There is a long thread on the legal aspects which you need to read. Consider yourself warned. Beware, beware, beware.

2. If you want to buy a condo, buy it yourself. (as mentioned you will need to bring in the funds)

3. Interest rate is not 2.5 percent. It is MLR - 2.5 percent. If MLR increases at any point in the future, your interest will also increase.

Once you have done a search and read all the info, I'll expect you to come back and tell us you have reconsidered.

Beware, beware, beware !!!!

wise words...

but BBL is currentlydoinga special at 2.5% for year 1.. thats MLR less 3.something..

spoke to them yesterday..

[xm911e3]

the Usufruct is NOT limited to 30 years,,,only long term lease is limited to 30 years... Ususfruct is life long usage while you are the owner of a condo.. it protects YOUR interest as the owner / co-owner and gives you the right to inhabit the property UNLESS you give away allor some of your haitation rights IN WRITING... ie if you bought in a serviced apartment and allowed the manager in writing to let the condo for 3 months ayear ..otherwise YOU have the right to occupy until you die ...

I see... Ususfruct is not the same as this 30 years long term lease. Ususfruct means I've the right to occupy this property until I die.

By the way Clinique, are you Singaporean in Chiang Mai?

[clinique]

the Usufruct is NOT limited to 30 years,,,only long term lease is limited to 30 years... Ususfruct is life long usage while you are the owner of a condo.. it protects YOUR interest as the owner / co-owner and gives you the right to inhabit the property UNLESS you give away allor some of your haitation rights IN WRITING... ie if you bought in a serviced apartment and allowed the manager in writing to let the condo for 3 months ayear ..otherwise YOU have the right to occupy until you die ...

I see... Ususfruct is not the same as this 30 years long term lease. Ususfruct means I've the right to occupy this property until I die.

By the way Clinique, are you Singaporean in Chiang Mai?

No, but a long term, 30 years, finance guy in Singapore and Thailand,,

If you have more detailed questions send me a PM..

(ie: click on the arrow next tomy smiley ?? face at the left and click where it says message

[xm911e3]

hi,

I think you'd better do some serious searching on this forum. There are loads of horror stories regarding property ownership here and you'd best read them before thinking any further. A couple of points to get you started:

1. In Thai law, any contract entered into between husband and wife can be voided by either party in the event of divorce. There is a long thread on this which you need to read, so dont rely on any simple agreement to protect you. Consider yourself warned. Beware, beware, beware.

2. If you want to buy a condo, buy it yourself. (as mentioned you will need to bring in the funds)

3. Interest rate is not 2.5 percent. It is MLR - X percent. If MLR increases at any point in the future, your interest will also increase.

Seriously, if your money is important to you, search this forum. Dont rely only on the replies you see here. This story has been done to death - in detail. Read all the info and see how big the mountain of BS you are facing.

Beware, beware, beware !!!!

Yep have heard and seen many cases myself too which is why before doing anything, I came here to seek advise.

[xm911e3]

hi, I think you'd better do some serious searching on this forum. There are loads of horror stories regarding property ownership here and you'd best read them before thinking any further. A couple of points to get you started:

1. In Thai law, any contract entered into between husband and wife can be voided by either party in the event of divorce. There is a long thread on this which you need to read, so dont rely on any simple agreement to protect you. Consider yourself warned. Beware, beware, beware.

Do you have the links to those threads? I really appreciate all the help. Edited April 5, 2010 by xm911e3

[xm911e3]

hi, I think you'd better do some serious searching on this forum. There are loads of horror stories regarding property ownership here and you'd best read them before thinking any further. A couple of points to get you started:

1. In Thai law, any contract entered into between husband and wife can be voided by either party in the event of divorce. There is a long thread on this which you need to read, so dont rely on any simple agreement to protect you. Consider yourself warned. Beware, beware, beware.

Do you have the links to those threads? I really appreciate all the help.

[xm911e3]

No, but a long term, 30 years, finance guy in Singapore and Thailand,,

If you have more detailed questions send me a PM..

(ie: click on the arrow next tomy smiley ?? face at the left and click where it says message

Thank you very much for your input bro. I really appreciate it.

[clinique]

hi, I think you'd better do some serious searching on this forum. There are loads of horror stories regarding property ownership here and you'd best read them before thinking any further. A couple of points to get you started:

1. In Thai law, any contract entered into between husband and wife can be voided by either party in the event of divorce. There is a long thread on this which you need to read, so dont rely on any simple agreement to protect you. Consider yourself warned. Beware, beware, beware.

Do you have the links to those threads? I really appreciate all the help.

Please be aware we are all giving you advcie on a public forum, which is likely from our own experience..

BUT we aint lawyers, Thai bankers or Thai courts,, suggest you get some legal advice from a reliable lawyer who speaks english and who you engage yourself (ie Not a friend of your GF) and speak to by yourself..

based on your questions yuo need more than TV forum can offer,,

good luck,,

[richardt1808]

hi,

I think you'd better do some serious searching on this forum. There are loads of horror stories regarding property ownership here and you'd best read them before thinking any further. A couple of points to get you started:

1. In Thai law, any contract entered into between husband and wife can be voided by either party in the event of divorce. There is a long thread on the legal aspects which you need to read. Consider yourself warned. Beware, beware, beware.

2. If you want to buy a condo, buy it yourself. (as mentioned you will need to bring in the funds)

3. Interest rate is not 2.5 percent. It is MLR - 2.5 percent. If MLR increases at any point in the future, your interest will also increase.

Once you have done a search and read all the info, I'll expect you to come back and tell us you have reconsidered.

Beware, beware, beware !!!!

wise words...

but BBL is currentlydoinga special at 2.5% for year 1.. thats MLR less 3.something..

spoke to them yesterday..

Sorry, I did re-edit my post. I have also just completed a loan with my business partner for a property. We had Kasikorn and BBL really fighting for our business and got them down to 1% capped for the first year. But after that it is MLR - X% It was a very sweet deal, but we had to purchase a life insurance/savings plan to qualify.

[richardt1808]

hi, I think you'd better do some serious searching on this forum. There are loads of horror stories regarding property ownership here and you'd best read them before thinking any further. A couple of points to get you started:

1. In Thai law, any contract entered into between husband and wife can be voided by either party in the event of divorce. There is a long thread on this which you need to read, so dont rely on any simple agreement to protect you. Consider yourself warned. Beware, beware, beware.

Do you have the links to those threads? I really appreciate all the help.

1. go to the top of this page, look for the search box

2. type 'contract voided divorce'

3. read the results. There are plenty.

4. Try some other combinations such as 'usufruct' or 'Thai divorce law' etc