Getting A Home Loan - Questions

[Ritti]

We are looking at buying a condo in Bangkok (central area near BTS or MRT).

I have been to 2 banks to discuss loans and have been told completely different things.

If it's in my name I will need 50% deposit. If both our names (my girl is Thai) we need 20% deposit. If it's in her name only she can only get a loan of 3 million baht.

Has anyone recently applied for a loan and what is the result?

Our combined income is just over 2 million baht a yr - we are not looking at anything huge - around 4 or 5 million.

Regarding deposit we only have about 500k as we just put money into another side business (not sure if this will be included when the banks look at our application.

Please no replies about whether buying is a good idea or not (we have been paying rent for 4 yrs and am sick of throwing money away) as we will be here for a least another 4 or 5 yrs.

Thanks for any advice

[trogers]

Buy a 2nd hand condo in Sukhumvit for around Bt2.6 - 2.7m of about 70 sqm, 2-bedroom/1 bathroom.

Mortgage loan - Bt2m and the balance in cash. You will need to save a few more months. Buy it in her name if you trust her.

[Ritti]

where can you get a condo that cheap on Sukhimwit?

Sounds very cheap but a great idea (4yrs of rent would of paid for 3/4 of that)

Cheers

[trogers]

where can you get a condo that cheap on Sukhimwit?

Sounds very cheap but a great idea (4yrs of rent would of paid for 3/4 of that)

Cheers

Waterford Park Rama 4 - Example of photos - http://thailand-classified.com/index.php?ct=&md=details&id=7434

Contact Khun Em phone number PM to you.

[johninbkk]

Do you have a work permit? <BR>Are you married?<BR>Do you have joint bank accounts? <BR>I think you'll find it will need to be in her name and the best you'll get, depending on your salary, will be 80%. Why not buy new as they will value the condo then calculate the 20% dep on that. They much prefer new Condo buildings. Currently I have 2 home loans and have just applied for another on a small condo in Bkk.<BR><BR>Good luck

[Ritti]

Yep have a work permit - been with the same place for 3 yrs -not married but we have been together for 6 1/2yrs. we have joint bank accounts (a savings account).

I like the idea of an older larger condo but she is not up for it as new is better

[trogers]

Yep have a work permit - been with the same place for 3 yrs -not married but we have been together for 6 1/2yrs. we have joint bank accounts (a savings account).

I like the idea of an older larger condo but she is not up for it as new is better

Then she can only get a new 45 sqm 1-bedoom costing under Bt70k/m2 by maxing out the available mortgage under her name only.

[johninbkk]

Yep have a work permit - been with the same place for 3 yrs -not married but we have been together for 6 1/2yrs. we have joint bank accounts (a savings account).

I like the idea of an older larger condo but she is not up for it as new is better

If you can also furnish a letter from your employer stating your salary and contract details, you'll have no problems getting the loan. But I'm sure they will only give you MAX, 80% and the term will be calculated on your age as well as hers. Basically you're the guarantor

Good luck

[Soutpeel]

Yep have a work permit - been with the same place for 3 yrs -not married but we have been together for 6 1/2yrs. we have joint bank accounts (a savings account).

I like the idea of an older larger condo but she is not up for it as new is better

If you can also furnish a letter from your employer stating your salary and contract details, you'll have no problems getting the loan. But I'm sure they will only give you MAX, 80% and the term will be calculated on your age as well as hers. Basically you're the guarantor

Good luck

You need more than just a letter from the employer, you also need previous 12 months pay slips + WP + passport.

The age of the applicant for the mortage will be calculated on her age only (she alone is the applicant), insurance will be in her name only, joint bank account is not relevant and your salary (as the guarantor) can/will be considered only if need be

80% is normal these days, however Mrs Soutpeel managed to get approved for 100% some years ago, with me as the guarantor and we were not married at the time

Being married or not does not form part of getting the mortage approved.

[bkk_mike]

You need more than just a letter from the employer, you also need previous 12 months pay slips + WP + passport.

The age of the applicant for the mortage will be calculated on her age only (she alone is the applicant), insurance will be in her name only, joint bank account is not relevant and your salary (as the guarantor) can/will be considered only if need be

80% is normal these days, however Mrs Soutpeel managed to get approved for 100% some years ago, with me as the guarantor and we were not married at the time

Being married or not does not form part of getting the mortage approved.

WP not always - I have acted as guarantor using offshore income.

Mortgage was based on my age (although not relevant as my wife is two years older than me).

Insurance on the loan was on me... - I had to do the medical, etc.

[THAIPHUKET]

Interested to buy for GF condo in that price range , what return if rented out?

Or better 2 smaller condos in different properties?

Spreading of location and management risk?

[aussiebebe]

'Ritti', you wrote you have 500k deposit, but the problem I think you'll have is at the land office unless you can borrow 50% of condo value to transfer into Thailand. I write this based on my experience; my wife is Thai and I bought a condo in my name two years ago. The requirements as I understood it then (it may have changed) is for the land office to see the Foreign Exchange Transaction Form of funds to buy the condo coming into Thailand. The FETF must be for 100% of condo value if foriegner purchasing on their own (as I did), or 50% if buying joinly as you are proposing. Obviously unecessary if your GF buys it, but if you're buying jointly, you'll need to transfer in 50% of value, so 500k isn't going to cut it.

[gregb]

'Ritti', you wrote you have 500k deposit, but the problem I think you'll have is at the land office unless you can borrow 50% of condo value to transfer into Thailand. I write this based on my experience; my wife is Thai and I bought a condo in my name two years ago. The requirements as I understood it then (it may have changed) is for the land office to see the Foreign Exchange Transaction Form of funds to buy the condo coming into Thailand. The FETF must be for 100% of condo value if foriegner purchasing on their own (as I did), or 50% if buying joinly as you are proposing. Obviously unecessary if your GF buys it, but if you're buying jointly, you'll need to transfer in 50% of value, so 500k isn't going to cut it.

According to what VIBE recently discovered in Chiang Mai, this is not true. Please read his thread entitled Condo Title Deed Issue...

The story is that the land office places the provisions of the CCC above those of Condominium Act, thus if you are married before the condo purchase you automatically qualify for a joint listing with no FETF required. The Condo will be considered sin somros and you can use sin somros funds for the purchase. The only FETF requirement is when you wish to be listed as a single owner and keep the condo as sin suan tua of the foreign national. This was Chiang Mai's take on the various laws anyway. There is no such thing as a "50% requirement", as sin somros funds are sin somros. End of story. Percentages are irrelevant.

VIBE's problem then turned out to be the bank (in his case, Bangkok Bank) who would not do a loan on a joint listing, but only for a Thai national with him as guarantor. This appears to be a different perspective than the land office, and apparently originates from a BOT perspective that places the provisions of the Condominium Act above those of the CCC, the exact opposite position of the land office.

I would be curious if the OP can go to the land office in Bangkok and find out directly from the officials there what their policy is on being listed as co-owner with his spouse who is a Thai national and using sin somros funds for the purchase with no other paperwork (forget the mortgage for the time being). There seems to be much confusion about this, and I would like to see if there is any consistency at all between the various jurisdictions. Chiang Mai's position is a logical interpretation. I would just like to know if other offices make the same logical interpretation.

Regarding mortgages, my best guess is that the following is true:

You listed as a single, foreign owner: No mortgage possible without permanent residency docs (and even then extremely difficult). I don't believe the 50% thing. I think you are being told stories that will turn out to be false in the end. Some of the larger banks like BBK used to write these mortgages out of their Singapore office (thus a foreign remittance) a few years ago and had requirements like this, but I believe they stopped that practice long ago. I think you will find that option is anachronistic and has been closed. The only way to accomplish this is full transfer from overseas with appropriate foreign remittance trail.

You listed as a co-owner with your wife: No mortgage possible at some banks. Maybe possible if you search around. There is not enough information on this. Certainly not possible with Bangkok Bank. No problem to buy the condo for cash however with no requirements for foreign remittance. This is confirmed in Chiang Mai. Need to hear actual experiences in other jurisdictions.

Your wife listed as the owner with you as the guarantor: Mortgage possible at almost all banks up to the limit allowed by the bank.

[InterestedObserver]

According to what VIBE recently discovered in Chiang Mai, this is not true. Please read his thread entitled Condo Title Deed Issue...

The story is that the land office places the provisions of the CCC above those of Condominium Act, thus if you are married before the condo purchase you automatically qualify for a joint listing with no FETF required. The Condo will be considered sin somros and you can use sin somros funds for the purchase. The only FETF requirement is when you wish to be listed as a single owner and keep the condo as sin suan tua of the foreign national. This was Chiang Mai's take on the various laws anyway. There is no such thing as a "50% requirement", as sin somros funds are sin somros. End of story. Percentages are irrelevant.

Please cite a source for this interpretation of Chiang Mia's, or any other land office, condominium policy. As far as I can tell, the Chiang Mia land office certainly has not officially confirmed any of this..

Edited January 1, 2011 by InterestedObserver

[Soutpeel]

You need more than just a letter from the employer, you also need previous 12 months pay slips + WP + passport.

The age of the applicant for the mortage will be calculated on her age only (she alone is the applicant), insurance will be in her name only, joint bank account is not relevant and your salary (as the guarantor) can/will be considered only if need be

80% is normal these days, however Mrs Soutpeel managed to get approved for 100% some years ago, with me as the guarantor and we were not married at the time

Being married or not does not form part of getting the mortage approved.

WP not always - I have acted as guarantor using offshore income.

Mortgage was based on my age (although not relevant as my wife is two years older than me).

Insurance on the loan was on me... - I had to do the medical, etc.

Out of interest which bank was it, as I didnt have to do any medicals etc and was told by SCB that they all they wanted was a letter from the company + 12 months pay slips, WP + PP etc and my signature on two documents to sign as a guarantor, for Thailand, all insurance and approval was based on Mrs Soutpeel as the applicant,

it was a very painless process for me..supply the doc's and sign on the dotted line in two places, that was it...in and out in 20 minutes.

[gregb]

According to what VIBE recently discovered in Chiang Mai, this is not true. Please read his thread entitled Condo Title Deed Issue...

The story is that the land office places the provisions of the CCC above those of Condominium Act, thus if you are married before the condo purchase you automatically qualify for a joint listing with no FETF required. The Condo will be considered sin somros and you can use sin somros funds for the purchase. The only FETF requirement is when you wish to be listed as a single owner and keep the condo as sin suan tua of the foreign national. This was Chiang Mai's take on the various laws anyway. There is no such thing as a "50% requirement", as sin somros funds are sin somros. End of story. Percentages are irrelevant.

Please cite a source for this interpretation of Chiang Mia's, or any other land office, condominium policy. As far as I can tell, the Chiang Mia land office certainly has not officially confirmed any of this..

I am entirely going by what VIBE told us in the thread cited above. I have no reason to believe he is misleading us.

[InterestedObserver]

I am entirely going by what VIBE told us in the thread cited above. I have no reason to believe he is misleading us.

Therein lies the problem, VIBE is basing his narrative mostly on what the bank "mortgage lady" is telling him and not on independent inquiries at the land office.

[clinique]

Totally agree with interestedobserver. The VIBE thread was interesting but not based on official info from Chiangmai land office. VIBE was relying on info from the 'mortgage lady' at his bank and was insisting the bank can say who goes on the Title as owner - not so.. only theland dept can say who does and does not.

Suggest you go to the relevant land office for your property and ask the Boss there what he recommends you do.

[jlelouer]

I found last year 3 banks (UOB/Landhouse/Kiatnatkin) ready to provide me loans on my name (no thai guarantee), offering from 50% to 70% of the condo value. I signed with the one offering 70% (1.3M only) - over 10 years repayment period - no deposit.

A no-go with local banks such as SCB/Kasikorn/Bangkok bank.