srs Posted August 3, 2011 Share Posted August 3, 2011 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 Link to comment Share on other sites More sharing options...
sulasno Posted August 3, 2011 Share Posted August 3, 2011 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 Link to comment Share on other sites More sharing options...
InterestedObserver Posted August 3, 2011 Share Posted August 3, 2011 Is anybody with a job or banking relationship in Thailand involved is this deal? Link to comment Share on other sites More sharing options...
sulasno Posted August 3, 2011 Share Posted August 3, 2011 bring the title deeds and simply walk into any commercial bank; approval may take a month though Link to comment Share on other sites More sharing options...
srs Posted August 3, 2011 Author Share Posted August 3, 2011 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. Link to comment Share on other sites More sharing options...
sulasno Posted August 3, 2011 Share Posted August 3, 2011 without an income the bank would like to know how is she going to service the loan ? Link to comment Share on other sites More sharing options...
Spoonman Posted August 3, 2011 Share Posted August 3, 2011 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. Link to comment Share on other sites More sharing options...
srs Posted August 3, 2011 Author Share Posted August 3, 2011 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? Link to comment Share on other sites More sharing options...
sulasno Posted August 3, 2011 Share Posted August 3, 2011 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 Link to comment Share on other sites More sharing options...
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