Mortgage For House

[Deez]

Looking to get a morgage for my GF to buy a house. Having trouble locating any info about rates etc. Any one get a motgage lately, or know of a good contact. Its for an existing house not new.

Thanks

[WinnieTheKhwai]

I'm going through that process right now. There are big differences between banks, and even between branches (and individual bank staff) of the same bank. Also the rates are very different. (not much in percentage points, but for a sizeable amount over 20-28 years, that represents a fortune.)

As with so many things in Thailand, personal relationships are also important in how smooth it all goes, and how willing the bank staff are to volunteer hints, tips and alternatives that end up saving big money.

It's a good sign when the Mrs. walks in and the person dealing with the loan request was in the same class as her in high school.. and quite remarkable how far bank staff go into making recommendations to circumvent their own rules. "Oh you're getting this house to rent out.... you know what, don't tell anyone that. That'll put you in the business loan department which isn't as good. Just say you're buying the house for your mum or something." And then there's of course the value assessment. "Well, we only allow mortgages of 80% of the appraised value, so you inflate the purchase price a bit, and don't worry about the appraisal process either."

Aside from that there the actual rates the bank charges; some banks have promotions, i.e. 0% for the first year, average 4.3 percent over the first three years, and a smaller discount on their posted MLR after that. But once you get there you are free to refinance, so you can shop around for the best deal then. Also for example when it comes to life insurance for your wife, which is required, but the premium varies greatly, and some banks seem to throw this one in "free".

The best rates are often the Government Savings Bank (Ormsin) though they have some harder requirements about ownership and the relationship between a Thai woman and a foreign partner. (Need to be officially married it seems). But you definitely need to look into this bank; we will probably end up re-financing there at some point.

As for promotions, I see good rates right now at the Thai Military Bank (TMB). See: http://www.tmbbank.c...tail.php?id=199

Edited February 6, 2012 by WinnieTheKhwai

[Rama]

for current bank rates - http://www.century21lanna.com/mortgage-calculator.php

[mjnaus]

Just got a mortgage for our new home done, on the wife's name obviously. We went with Krung Thai Bank as it came recommended by several people around us. They are a bit harder to accept your application, but they seem to have the lower interest rates plus they have nice promotions (we got one allowing us to not to pay any interest over the first 9 months).