Bank Loan For House Purchase

[seesip]

Looking into options for buying a house, any recommendations for particular banks? I checked out Bangkok Bank and have heard a positive comments Government Savings Bank.

[eyecatcher]

I assume you are farang? is it possible for us to get a loan/mortgage etc; I was under the assumption it was not possible.......2 assumptions..........and they say assumption is the mother of all f£ck ups

[seesip]

I assume you are farang? is it possible for us to get a loan/mortgage etc; I was under the assumption it was not possible.......2 assumptions..........and they say assumption is the mother of all f£ck ups

Part farang. But wife is doing the borrowing. Not sure what the policies are for farang borrowing.

[jackr]

Yes it is possible. You act as guarantor (based on current/previous earnings) to the wife, but are looking at a high minimum--typically 50%, over 15 years. Siam Commercial do them for mixed couples also, as will L&H Bank. Might find they all do.

As a singular entity farang, guessing you'd have to have some legit business setup with work permit and paying tax to get one off your own back.

[BB1955]

Unless your wife can show an income last time I checked Bangkok Bank will not make a house loan based on a farrang income as to guarentee . Only bank I could find was SCB and they would only loan 50% of the appraised value of the home . If anyone has another experience or way of doing this I would truly like to know as well . We pretty much checked all of the banks and this is what we found .

[WinnieTheKhwai]

Yes it is possible. You act as guarantor (based on current/previous earnings) to the wife, but are looking at a high minimum--typically 50%, over 15 years.

If you look hard enough an negotiate you can get pretty close to 100% and 30 years. Officially they don't do 100% of course, but if you get the place over-appraised you get real close. Yes, your wife would need regular income.

We financed two places, one at 100% of the sale price, another one I think we got up to 80%

Government savings bank has the best rates, but is also the most hassle to get anything done. As with so many things in Thailand it depends on the individual branch and individual person more than the bank as a whole. (Though I will say that SCB seems a waste of time.) KTB, Military Bank, Bangkok Bank and so on are all game, with various entertaining hoops to jump through.

All of that is for existing properties. If it's new such as Land & Houses these companies tend to provide financing themselves, so then it really turns into an epic negotiation. Find the sales person who wants the sale.

[seesip]

Yes it is possible. You act as guarantor (based on current/previous earnings) to the wife, but are looking at a high minimum--typically 50%, over 15 years.

If you look hard enough an negotiate you can get pretty close to 100% and 30 years. Officially they don't do 100% of course, but if you get the place over-appraised you get real close. Yes, your wife would need regular income.

We financed two places, one at 100% of the sale price, another one I think we got up to 80%

Government savings bank has the best rates, but is also the most hassle to get anything done. As with so many things in Thailand it depends on the individual branch and individual person more than the bank as a whole. (Though I will say that SCB seems a waste of time.) KTB, Military Bank, Bangkok Bank and so on are all game, with various entertaining hoops to jump through.

All of that is for existing properties. If it's new such as Land & Houses these companies tend to provide financing themselves, so then it really turns into an epic negotiation. Find the sales person who wants the sale.

Thanks that's very helpful. Don't the banks themselves usually do the appraisal? Are the banks negotiable in the % they'll finance, or do they usually have an established percentage that's offered?

I've found that so far the banks we've spoken with have said to bring in the signed sale contract (which typically includes a down payment), in order to apply for the loan. But the problem is, if you've already laid down cash for the down payment but the bank decides to deny you the loan and/or offer to finance a low percentage, etc., then you risk losing the down payment. I wonder why they don't do tentative approvals beforehand? Seems risky for the buyer.

[uptheos]

What if the farang just buggers off?

Sounds too risky for the banks IMO and I presume they don't keep your passport for 30 years.

[WinnieTheKhwai]

Thanks that's very helpful. Don't the banks themselves usually do the appraisal?

Yes, they do. That's what makes it so entertaining, because you get the bank girl (who wants to sell a mortgage) coaching the appraiser on what to fill in. Typical Thailand. Also, if you can't get something over-appraised then the selling price is probably too high to begin with.

Are the banks negotiable in the % they'll finance, or do they usually have an established percentage that's offered?

They have several plans. And they have regular 'promotions' that you can join. Stuff like 'don't pay interest the first year' and other stuff that necessitates firing up an Excel sheet and figuring stuff out. The interest % varies per bank, usually the Bank of Thailand rate 'minus X%'. But then some of the incentives and promotions may mean that bank with a slightly higher rate works out better. (Especially if they're willing to finance for a longer term or a higher amount).

I've found that so far the banks we've spoken with have said to bring in the signed sale contract (which typically includes a down payment), in order to apply for the loan. But the problem is, if you've already laid down cash for the down payment but the bank decides to deny you the loan and/or offer to finance a low percentage, etc., then you risk losing the down payment.

True, though my down-payment wasn't really worth worrying about all things considered. I think it was 1% of the sale price; wouldn't want to lose it, but we were reasonably confident to come up with the money one way or another. Crucially, the seller has to be reasonable here on the down-payment: if he asks for the sun and the moon then the result is that you can't reasonably take the risk of getting finance. If the seller isn't willing to play ball then he will have to just wait for someone else able and willing to show up with a bag of cash. Or if he's interested in selling to you then you have to explain that this means a modest down-payment, and enough time to go play the bank game, which can EASILY be a month.

Edited September 7, 2012 by WinnieTheKhwai

[WinnieTheKhwai]

What if the farang just buggers off?

Doesn't matter if the payments keep coming in. Or if they don't then the bank repossesses the property, which they then own and can sell. It's the same for mortgages anywhere.

[WinnieTheKhwai]

One more thing: you can also refinance after x years which is well worth investigating. We recently hit 5 years and got a better deal through refinancing with the same bank, taking advantage of some promotions they were running. A couple percentage points makes a big difference in these kinds of things.

[Mario2008]

If your wife is a civil servant, she might have cheaper options.

[BB1955]

I am pretty much on the same boat . Wife has no income but has in the past, borrowed and paid back when she worked in Bangkok . We talked to SCB we were told they would finance 50% of the appraised value based on my income which of course is fixed and solid . Luckly we have located a house we like and the owner is more than willing to sell when her renter vacates which is still five months off . Our plan is to apply sometime in November . We offered a small down payment to hold the house but seller said was not nessasary . We are hoping for an appraisal for more than what the asking price is . If there is any advice on how to get the apprasial kicked up I would very much like to hear them . Thus far and we have checked many banks,, SCB is the only bank we found that would consider a home loan based on a farrangs spouses income ...

Any advice here I would be greatful ..... I can plop down 50% of the asking price but would prefer not to dig that deep in my savings ....

[barefoot1988]

my apologizes to the lengthy question as im really new to loans. any advise if i would be able to secure a house loan for my case?

both my wife and me are self employed. i deposit a million baht in my wife account last year to purchase a car, now its left around 200k now. my personal account is pretty messed up with no savings with just random weekly deposit and withdrawal according to my needs, around 70k-100k in and out monthly. i do pay my house rent on time, 20k before bills per month for around 2 years, would that count for good credit rating? i had a maybank credit card that i use for movies, online shopping and gadget stuff here and pay my bills on time as well, would that qualify for credit rating as well? the card is alittle more than a year old. im looking for a 50% loan, or higher if interest rate is good

[BB1955]

my apologizes to the lengthy question as im really new to loans. any advise if i would be able to secure a house loan for my case?

both my wife and me are self employed. i deposit a million baht in my wife account last year to purchase a car, now its left around 200k now. my personal account is pretty messed up with no savings with just random weekly deposit and withdrawal according to my needs, around 70k-100k in and out monthly. i do pay my house rent on time, 20k before bills per month for around 2 years, would that count for good credit rating? i had a maybank credit card that i use for movies, online shopping and gadget stuff here and pay my bills on time as well, would that qualify for credit rating as well? the card is alittle more than a year old. im looking for a 50% loan, or higher if interest rate is good

I can tell you what we were told at most of the banks . If you wife is Thai and she can show an income for atleast the last 6 months that taxes were paid on then you stand a very good chance of getting better than a 50% loan. Then again if you are putting in and taking out every month they may look at that a little different .

[anselpixel]

Even with rentals here, it's been my experience that the owner declining earnest money/deposit is not a good sign. The first rule of Thai business is that the person who arrives first with the money on the day the property opens gets it. I think most property owners are indifferent about whether it's a long-term renter or a buyer.

[JeffreyMcCollum]

I assume you are farang? is it possible for us to get a loan/mortgage etc; I was under the assumption it was not possible.......2 assumptions..........and they say assumption is the mother of all f£ck ups

Some Banks will loan. 1/3 down and up to 5 months for a property you can put in your name

[KNJ]

^{A few years back but 20% down and 80% on mortgage of 5 years. I had work permit, and shared bank account. Paid off after 2.5 years with sizeable discount. That was with Thai Farmers, so tells you it was a few years back indeed, but it was possible then, and if you shop around should be possible now.}

^{If it is a developer selling why do you not ask them to help arrange, that is probably an easier option}