Home Ownership Mortgage Terms?

[jsflynn603]

If a Thai, born in Chiang Mai, who has good proof of income, and good credit wishes to purchase her family residence, now owned by a non-family member, which consists of two ~60 square meter houses, single story, typical concrete construction, in fair condition, on a half hectare piece of land, and wishes to take a 400,000 baht mortgage. What are the usual bank terms?

Here in America, most resident house sales come with a 30 year mortgage. What is the norm in Thailand? 10, 20, 30 years? Care to guess annual percentage rates these days?

Her parents live in one of the houses at the moment.

Anyone care to venture what the above property "range" might be. The location is just off Rte 1014, a few kilometers past Bo Sang (where you go to buy umbrellas if you are interested, while you are in Chiang Mai). Bo Sang is about 10 kilometers West of Chiang Mai.

Thanks

[johnnyk]

Why not ask the banks?

[jsflynn603]

*lol* Because all I know how to say is mai bpen rai; mai rue; and arroy maak maak! They would just look at me and smile. I'm hoping that some of our Thai members who deal with home mortgages might help.

[remiss]

*lol* Because all I know how to say is mai bpen rai; mai rue; and arroy maak maak! They would just look at me and smile. I'm hoping that some of our Thai members who deal with home mortgages might help.

I believe the correct wording to the bank would be 'khaw sadtang noi' or 'khaw tang noi' -- and don't forget krap..

Edited March 17, 2011 by remiss

[clinique]

Someof the Thai banks websites have english versions.

The terms are explained thereon.

If not your wife can look at the Thai version.

From our own experience the maximum home loan term is 30 years , but Thai banks prefer 20 (as do overseas banks as the diffence in repayment amount is not huge)

[samran]

unless you are physcially resident in Thailand, and ideally with a Thai income stream, I'm dubious that they'll lend you anything.

[flying]

http://www.bangkokbank.com/Bangkok%20Bank/Personal%20Banking/Loans/Home%20Loans/Pages/Repayment%20Plan%20Options.aspx

Repayment Plan Options at Bangkok Bank....(In English )

[gregb]

Mortgages are only granted when you (the person applying for the mortgage) are planning on living in the home. (Technically anyway. In practice, as long as you are in Thailand they have no way of knowing whether you really move into the place or not, and if you don't it's too late to do anything about it anyway.) Thus, you will find it will be almost impossible to get a mortgage if you are living overseas. It is possible to apply for a commercial loan though, but that is much shorter and at a higher interest rate.

As long as you are physically living in Thailand and your income is from Thailand, then the bank will typically go 80% of sale price for a (nominally) 30 year adjustable rate mortgage. The monthly payments are then typically calculated so that the loan will be paid back in 20 years if the interest rate doesn't change. A change in interest rates then simply increases or decreases the term of the loan. This is also different from the US where changing interest increases or decreases the payments.

Of course, this is Thailand, and bank policies change all the time, so anything is possible. It never hurts to ask around and see what people are willing to do.

Your other option if you only have overseas income is to find a local Thai with local income to cosign as a guarantor. He can trust your overseas income. A bank generally can not.

[Maxxamum]

I read your post on home mortgages and have this to ask. I plan to have a house built on land my wife owns (her name, my money). She will lease the land to me if necessary, we're still trying to figure that out. I planned to pay cash for it cause I dislike debt but if I can get a mortgage I can buy more farmland with the extra cash which will generate more income for both of us. I will be retired then and my only source of income will be investment and social security from the USA but adequate to cover the mortgage. What are the chances of my getting a mortgage in the first place being retired with a foreign income source?