No Need For Tt3 For Foreigners W/ Mortgage-update

[steveromagnino]

Hello

I just went through the process of buying a condo, and thought I'd explain it, as it clashes a bit with some of the other info I've read. I have Thai blood in a distant way, but effectively on paper I am a foreigner with work permit and stuff.

I bought a condo in a building with very few foreigners, and approached several banks about a mortgage. I do not own a car here, many assets or much else, but the company of which I am a director (family business) has borrowings with one bank. Several banks I approached were willing to do a mortgage for a foreigner with a work permit, VISA, some savings and stuff, but the one where I already had car financing were the most helpful, because I already had an indirect relationship with them. I went with one of my relatives, and a bunch of evidence showing my work here.

I ended up borrowing 60% of the value of the unit; standard terms and conditions. I provided 40% of the deposit on the day of purchase at the land transfer office (the property dept) and they asked whether I had a TT3. When I showed them the work permit and they saw I was borrowing the remainder, they said I do not need a TT3 because the income was generated in Thailand.

I am not sure if they would have said the same thing if I did not have the mortgage, but I suspect so.

So..there you have it.

- foreigners can get a mortgage

- if you have a work permit and a mortgage you do not need a TT3

I hope this is helpful to someone out there

[Digger]

So is this considered as a condo owned in your name as a foreigner and where is the condo located (BKK etc).

Sounds interesting.

[steveromagnino]

yep, in my name, although the bank has a lien or something over it until I pay the mortgage off (as is standard worldwide).

Located in Lard Prao; existing building about 7 years old, which I bought off the developer (one of the last remaining units). About 10% foreign owned and 30,000b per sq. m.

[Dragonman]

Hello

I just went through the process of buying a condo, and thought I'd explain it, as it clashes a bit with some of the other info I've read.  I have Thai blood in a distant way, but effectively on paper I am a foreigner with work permit and stuff.

I bought a condo in a building with very few foreigners, and approached several banks about a mortgage.  I do not own a car here, many assets or much else, but the company of which I am a director (family business) has borrowings with one bank.  Several banks I approached were willing to do a mortgage for a foreigner with a work permit, VISA, some savings and stuff, but the one where I already had car financing were the most helpful, because I already had an indirect relationship with them.  I went with one of my relatives, and a bunch of evidence showing my work here.

I ended up borrowing 60% of the value of the unit; standard terms and conditions.  I provided 40% of the deposit on the day of purchase at the land transfer office (the property dept) and they asked whether I had a TT3.  When I showed them the work permit and they saw I was borrowing the remainder, they said I do not need a TT3 because the income was generated in Thailand.

I am not sure if they would have said the same thing if I did not have the mortgage, but I suspect so.

So..there you have it.

- foreigners can get a mortgage

- if you have a work permit and a mortgage you do not need a TT3

I hope this is helpful to someone out there 

<{POST_SNAPBACK}>

You don't say the term of your mortgage as it has previously only been possible to get short term loans for property purchase.

[steveromagnino]

I got 5 years, because it is hardly any money - the place I am buying is after all only a 2 bedroom and at 30,000b per sq metre.

The bank tried to talk me into either 10 or 15 but I wanted to nail the mortgage earlier than this...

I don't think they would have gone to 25 though.

[appleman_thai]

Steve,

Very interesting. I am in a similar position as you. I have been working here on an expat contract for 4 years.

I applied to SCB for a mortgage for 70% of the Condo. After some haggling over life assurance they approved the mortgage (20 years).

However, my lawyer has highlighted a problem with regard to registrying the condo in my name. As 70% of the funds will come from the mortgage I must get a "Letter of Confirmation" from the Bank stating that the money comes from a Non-Resident Account OR that the mortgage is in foreign currency (not thai baht).

Problem is that SCB know nothing about this "Letter of Confirmation", will not open a non-resident and will not give the mortgage in foreign currency.

Im also buying near Lad Phrao (Supalai Park) and was wondering if its the same land office as you registered yours?? Did you have lawyer or do it all yourself?

[steveromagnino]

I messaged you as well :-)

That is exactly the position i did it; I just rocked up to the office which is just across from Major ratchyothin.

The bank did not provide that letter, and the office did nothing.

The only thing I thought might come up was the deposit money, but they didn't really even care about that.

I did meself, so maybe the lawyer is being over cautious; I didn't use SCB though....hmm..... I would check with the Supalai ppl, and the bank again, but I cannot guarantee you will be in the same position as me.

Do you speak Thai? Can you read the forms? Can you answer for youself if they ask you about this stuff?

[appleman_thai]

Steve,

THanks for message.

ALmost the same position - so I will go to try and register ownership without the full fx certificate for the purchae price. My lawyer says tha legally the land office should not accept but its still possible that they will.

Fingers crossed.

[stateman]

Hi steveromagnino,

I thought the tt3 or FETF will also benefit the buyer, should you decide to remit money from the sale of the property back to a foreign country. It seems that without it, you may have hard time remitting the money back overseas, assuming you or the buyer desires to do so in the future.

But in your case, the money is earned in thailand. So I can see that you probably don't need to plan for the remitting scenario.

[steveromagnino]

True, good point, but yes in my case I will not remit this money back as you say, so no problem :-)