Mortgages

[saorsa]

Since I have seen a few threads about foreigners wondering how to get a mortgage for the wife based on their salary, I thought I would share my own experience.

The other day I went to KTB (Krungthai Bank) and GSB (Government Savings Bank) to check out the possibility of getting a mortgage to build a new house on land I am paying cash for. My wife works full time, but on a Thai wage, I work offshore. Both banks said it wasn't a problem for my wife to get a mortgage with my wage being the basis for the repayment. . KTB said due to me not having a work permit for Thailand that they would do 50%, maybe 60% of building costs. GSB offered 10-12,000b per m2 of the finished house size. For both, you must have government approved plans before they will confirm the amount of loan and then the money is released in stages throughout the build. GSB has better interest rates, but as I'm looking at about 30,000b per m2 for the building costs, I will go with KTB.

Hopefully this info will help someone who is thinking of doing a new build and unsure about how to be able to finance it.

[Crossy]

We got a building loan (50%) through Siam Commercial.

Be prepared for the long haul, supposedly stage payments over the build period as noted by saorsa, but it's taken nearly the entire building period (12 months) to finally get the cash in the bank (we've been financing the construction ourselves meanwhile), the paperwork is seemingly endless, and, in common with immigration, they never seem to ask for everything at once, in fact we had to re-supply our pay slips because the first lot were too old by the time the bank got their act together.

We ended up providing (with endless copies):-

My passport.

My work permit (in the past it was a non-starter without, don't know if anything has changed).

6 months payslips for myself and wifey (x2 as indicated above).

Wifey's ID.

Wifeys Tabien Ban.

Tabien Ban for the nearly complete house (I suspect that this is what's needed to get your final stage payment).

Confirmation of Employment from our respective employers (our contracts were not deemed suitable, they wanted dated and stamped letters).

Marriage certificate (you do apparently have to be married to use the combined incomes).

6 months bank statement for me as I don't bank with Siam Commercial.

Credit reference for me from the National Credit Bureau (x2 again because of bank delays).

Building permit with attached approved drawings.

Construction cost breakdown from the contractor.

Independent valuation of the house.

Construction status survey (x2 for us plus the completion survey)

Probably something I've forgotten, the bank file is a massive stack of paper

Signatures by the dozen and initials on what seems like a whole pack of paper.

[rgs2001uk]

"I'm looking at about 30,000b per m2 for the building costs"

None of my business, but what are you building, the Taj Mahal?

Is the 30k a figure someone has quoted you or is it a figure you think it may cost.

What is the 30k getting you, for that sort of money I would want everything included.

This would also include upgrading everything, eg roof purloins upgraded to stainless steel, stainless steel guttering at 1000 baht per linear metre.

Upgrading of plumbing pipework and electrics to a western standard, security bars fitted to all windows plus fly screens, plus security doors fitted to all external doors.

Does this also include a western fitted kitchen?

For that price I would like to think its not Cotto floor tiles throughout the house, but either granite or marble.

Does that price also include the cost of raising the land by at least a metre and even better 1 1/2 meters?

I seem to remember you are looking at On Nut (?) does that include the cost of piles?

You will probably need at least 16 piles at at cost of roughly 13k per pile, so theres another 200k just for starters.

I would google, landyhome.co.th

Should bring you to this page,

If you cannt read Thai I have highlighted a link for you to click on, this will give you homes in the 3-6 million baht price range, also includes floor plans.

May or may not be of any use to you, but it shows what you can get for your money.

landy.bmp

[dave111223]

"I'm looking at about 30,000b per m2 for the building costs"

None of my business, but what are you building, the Taj Mahal?

Agreed, seems pretty high. Better to get the builder to cut the building costs to "standard" stuff (15-20K per square meter), then refund/upgrade the individual items yourself (Tiles, fixtures, doors, etc..as you go) If you just say "give me the best" from the start they will rip you off.

For example there is no point getting a quote which includes a budget of 3000 baht per square meter for tiles, then going and picking out 2000 baht tiles.

Better to get a quote with a 500 baht tile budget, then when you pick out the 2000 tiles, just pay the extra 1500.

[saorsa]

RGS and Dave, thanks for the advice, but I am happy with what I am getting for my money. I was only trying to let people know that finance is available even if you do not have a work permit.

[Crossy]

RGS and Dave, thanks for the advice, but I am happy with what I am getting for my money. I was only trying to let people know that finance is available even if you do not have a work permit.

No WP has always been a stopper in the past, it would be really good to hear of someone getting financing solely based upon a foreign income. We used my local income together with that of Wifey totalling 150k per month for a loan of 2.3 million over 15 years.

I don't want to rain on your parade but until you have the cash in your pocket nothing is a given, despite what your local bank manager says, as all decisions are ultimately made by Head Office

BTW, our place (shell only) cost about 13,500 Baht per m²

[saorsa]

No WP has always been a stopper in the past, it would be really good to hear of someone getting financing solely based upon a foreign income. We used my local income together with that of Wifey totalling 150k per month for a loan of 2.3 million over 15 years.

I don't want to rain on your parade but until you have the cash in your pocket nothing is a given, despite what your local bank manager says, as all decisions are ultimately made by Head Office

BTW, our place (shell only) cost about 13,500 Baht per m²

Shouldn't post when drunk...my reply was a bit 'short'.

20k per m2 for shell including piles and I'm anticipating another 10k per m2 for fitting it out.

Everything I have read here said a WP is required, but both banks seemed to think it is doable with no WP. As you say, until the cash is in the bank, nothing is guaranteed and I will update here with what happens when we get to the stage of actually applying. If in the end we can't get the finance, then plan B is to postpone the start of the build by 12-18 months by which time I should have enough to cover the costs myself.