Thailand Housing Loan

[axisgec1]

Hello, guys.

I was build new house at Roi et, I paid around 5M Baht for constrution house. And it was finished March in this year.

I want to housing loan from local thai bank. I visited to SCB Bank, roi et branch office. They said me they will loan as 50% of house value.. what the hell... In my opinion, usually bank should loan as 80% to 90% of house value.

Anyway, the wrer came to my house for apprising, and they said me total value is around 2.7M Baht. bullshit... again. finally, they said me thay will e loan as 50% of 2.7M baht. likie 1.3M Baht.

How do they do like that? So, I was complaint to the bank and manager said, they will loan as sum of 1.8M Baht for 15 years and interest MRR + 3%.. bullshit again..

They came to my home for apprisal, and took 5,000 baht cash.. and they are still working with my cases. around 3 months...

I sent to them, my bank statements during past 6 months, Payee slip for 3 months, and certificate of employee etc....

So, my questions... Is there working right? all foreigner can be available loan amount as 50% of colletarel value? and I have questions about interests, too. Why I paid MRR+3%?

I think the bank cheating me, now. How do you think about it?

I bought one great condominium at Pataya, 10 years ago. In that times, I was also applied housing loan to SCB Bank, they provide me 85% of total value of condominum. Like 7.5M Baht.

and now, all is defferent. Why? do you know why?

James

[Soutpeel]

Are you applying in your own name for a mortgage ? or are you co-signing the loan on behalf your wife and the loan is in fact in her name ?

SCB usually want 12 months payslips (know this because I have done this through SCB)

Secondly...The thing you have to understand, the bank may perceive the property is over captialised at THB 5.0m, ie if you defaulted on the loan and they repo'ed the property the maximum they would get back is put at 2.7 million, there are a lot a facts in this assessment.. ie the area, preveiling market prices in the area for similar properties.. etc...so very simplisit to say because you paid THB 5.0 mil, they must give you 80% of this...it doesnt work that that way.

Are you being cheated...No....the bank has been out assesed the property, applied their lending criteria and this is what they have come up with, its not a god given right for you to get a mortagage....you have to comply with their lending criteria not the other way around..its you that wants the money...

[dave111223]

MRR + 3% on a mortgage That's currently 10.5%, and likely to increase. They are having a laugh; just go to a variety of different banks. You'll find a better offer if you shop around, SCB sucks for loans.

15 years and a fraction of the value of the property is also all part of the standard SCB slap in the face.

5000 seems a lot for the appraisal, normally only 1000-2000 or so from most banks. Oh well it's gone now; best not to think about it and move on.

[axisgec1]

Thank you ,guys..

Wow.. they said me, they will re-appraise to my house value on next tomorrow. And they said so many options.. Bank manager tell me interest will be MRR, not +3%.

land & house owner is my wife's name. But they will lend money to my name, directly. Because my wife is just house wife, no jobs, no incomes..

I will setup some business for my wife. She cannot borrow any money from Thai bank without legal incomes.

O.K I don't need borrow money huge amount. Additionally, they said me I cannot cancel lmlrtgage loan contract within 3 years. I want to retune loan amount not over 2 years..

What the hell.... I have to paid 3 years 36X17,000 baht, one time or during 3 years.. and I'm also paid penalty, 2% of total balace amount with principal...

Oh, my god. How they are running banking business like this??? If I borrowed from U.K, it just not over 4% P.A.

Do you know.. here has over 10% interest rate per month with private financing. some times 15%. I think Thai farmer should be reach persons.. lol.

[Soutpeel]

Thank you ,guys..

Wow.. they said me, they will re-appraise to my house value on next tomorrow. And they said so many options.. Bank manager tell me interest will be MRR, not +3%.

land & house owner is my wife's name. But they will lend money to my name, directly. Because my wife is just house wife, no jobs, no incomes..

I will setup some business for my wife. She cannot borrow any money from Thai bank without legal incomes.

O.K I don't need borrow money huge amount. Additionally, they said me I cannot cancel lmlrtgage loan contract within 3 years. I want to retune loan amount not over 2 years..

What the hell.... I have to paid 3 years 36X17,000 baht, one time or during 3 years.. and I'm also paid penalty, 2% of total balace amount with principal...

Oh, my god. How they are running banking business like this??? If I borrowed from U.K, it just not over 4% P.A.

Do you know.. here has over 10% interest rate per month with private financing. some times 15%. I think Thai farmer should be reach persons.. lol.

Something is wrong with the information you have been given

A farang will not get a Thai mortgage in their own name, most certainly in the case where the property has land in the equation.

A farang however can co-sign on a Thai mortagage for a Thai national, but the mortgage will be in the Thai nationals name, whether the Thai national is employed/assets/income or not in this case is irrelavant as they will only consider the farangs income. In the case of going the co sign route, parties do not need to be married.

I know all this for certain, as I did exactly this for Mrs Soutpeel before she was Mrs Soutpeel with SCB.

As regards early repayment....early payment penalty clauses are common in all long term loans, Even in the UK, the bank will penalise you in someway if you pay off too early, as they are not making the their money (Banks are not charities, they do things to make a profit and they want their profit irrespective of when you pay it off! )

Are you sure this money is actually a mortagage and not a personal loan ? as the information is in complete conflict with what I understand about Thai mortgages having been through all this before.

If what they are doing is giving a personal loan against collaterial (ie existing house) then a lot of this inforation would make sense, ie the higher interest rates, only loaning 50% of the value of the property, loan is in your own name, as this is not a mortgage.

The Bank manager may be telling you a lot of things, but at the end of the day, the loan will be approved in BKK, but beleive he is giving you some incorrect information as regards Thai mortgages, but would be applicable to geting a personal loan