How To Mortgage A House In Thailand?

[srs]

Hi all,

I hope you can help me out here?

Is it difficult to take a small mortgage on a house in Thailand?

Here are the facts:

We are talking about a small house in Isaan.

Brand-new ;-)

Construction costs: about 500.000 baht.

Owner: Thai (of course)

What would the owner have to do in order to get a small mortgage of about 80.000 baht !! on this house?

What documents are needed?

Is this easily done?

Of course it should be done with a "reputable" bank.

How much interest is to be paid monthly / yearly?

Thank you all for the help

[sulasno]

if you require the loan for a short period, try asking for overdraft facilities from the bank instead of a term loan ;

they would want to know what's the loan for though

[InterestedObserver]

Is anybody with a job or banking relationship in Thailand involved is this deal?

[sulasno]

bring the title deeds and simply walk into any commercial bank; approval may take a month though

[srs]

The Thai owner of the house does not have a regular job (studying at university before) and no positive or negative connection with a bank.

The "only" security is the house.

She has a good friend working at the bank though ;-)

For me it would just be very helpful if I could get some rough idea of how easy or difficult it is to ge a small mortgage like this.

In relation to the construction costs of the newly erected house we are talking about a max of about 20% mortgage.

And of course how much this would cost per month/year.

[sulasno]

without an income the bank would like to know how is she going to service the loan ?

[Spoonman]

without an income the bank would like to know how is she going to service the loan ?

By letting others service her, either that or rinse a farang.

[srs]

without an income the bank would like to know how is she going to service the loan ?

By letting others service her, either that or rinse a farang.

That of course is one option. ;-) Though I doubt that would impress the bank since there won't be a rinse-a-farang-contract.

I was under the impression that since there is a house as a security the bank would give away some money quite easily.

I mean, about what monthly "fee" are we talking about for a 70.000-80.000 baht loan?

[sulasno]

how long do you need the loan for ?

simple calculation;

principal X about 9% interest p.a. X number of years of loan divide by number of months for interest payment (it's a rough figure since interest is on reducing balance)

principal repayment = total amount divided by the number of months

there is also a handling charge of 1% on the principal plus another 1% payable to the Land Office to register the loan