Mbk Offering Foreigners Freehold Condo Finance

[mark5335]

I just saw the following article on the Thailand Real Estate Forum which was posted from the Phuket Insider.

http://www.thailandrealestateforum.com/mbk-offering-foreigners-freehold-property-finance/

With limited options available to foreigners looking to purchase and finance a Thai condo in their own name, (the UOB and HSBC Premier offerings are not attractive for many), this offering by MBK might find favour amongst foreigners looking to finance their Thai condo.

The brief details extracted from the web link are as follows:-

"On offer to foreign homebuyers in freehold condominium projects are terms with key items being loans between THB 2 to 20 million and monthly payments over 2-10 years.

A balloon payment at the end of the loan of up to 50% of the total can be arranged. Interest is set at MLR (minimum leaning rate) plus 2% per annum.

There is no requirement for employment in Thailand or permanent residence. For those over 60, only 50% of the value can be financed."

By the way, I haven't contacted MBK to check their application process, as I already got my Thai condo loan a few years ago from BBL when they were offering them from their SG branch.

I hope some members find this useful.

Regards, Mark

[kuma]

great info thanks

[flying]

Thanks

Thailand’s MBK offering condo financing for foreigners

[Chunky1]

Very smart business plan.

[FarangBuddha]

Very smart business plan.

I should think so...12% interest...when mortgage rates in Euro/USA are in the 4-5% range.

Edited August 27, 2010 by FarangBuddha

[trogers]

Very smart business plan.

I should think so...12% interest...when mortgage rates in Euro/USA are in the 4-5% range.

Question is, does this outfit operate under a legal money-lending license from the Ministry of Finance, like banks and finance companies have?

[james24]

Has anyone done this...? Is it true..? Is it legal?

Thing is 12 per cent is bloody high, especially in this crisis time.

[mark5335]

Very smart business plan.

I should think so...12% interest...when mortgage rates in Euro/USA are in the 4-5% range.

Question is, does this outfit operate under a legal money-lending license from the Ministry of Finance, like banks and finance companies have?

I requested an application form from them a while ago and asked whether they have a licence from MoF but got no response. I think what they're proposing is not strictly in line with gov't regulations.

Regarding the 12% interest rate, after reading the property-report.com article, that rate seems to apply only to refinance cases which are interest-only for 3 yrs. A loan for purchase is a more palatable 8.375%.

[siam2007]

the article on "property-report" posted as a link here says "..... the property must be in prime location of BKK, Hua Hin, Cha Am, Pattaya or Samui".

it would be interesting to know what that EXACTLY means. the property sale has to have a minimum volume ? of how much ?

what is considered a "Prime Location" in BKK ?

[rachit85]

Does anybody have any experience with MBK finance? I am about to take loan from them so your feedback/experience is highly appreciated.