Home Loan Question

[BB1955]

Am in the process of obtaining a home loan from SCB . My wife is borrowing the money with me as guarrentee . Does anyone know if life insurance is manditory on the wife when taking out a loan as this . Seems like of worthless as I will be making the payments . Woulds love if they would put the insurance on me instead of the wife . My question the insurance is it manditory ???

I know in the US its not required but encouraged because the loan officer makes a fat commision ... But again this is Thailand ...

[onthedarkside]

Yes, with SCB bank loan then insurance cover for the value of the loan is required, all arranged by the SCB insurance division. At least that was the case when my wife last borrowed money from SCB.

[BB1955]

Thanks I just wanted to make sure I wasnt being scammed .... Would make much more sence for it to be on me than her ... But who knows these roads are pretty dangerous ........

[jackr]

When I turned this down (includes 6 months non-payment cover), the dude cleverly reconfigured the loan to spread the exact amount across the term (minus 'insurance'). So I think I ended up paying for it but didn't get it. My advice, just do what they want as they'll always get you... banks are good at that.

[WinnieTheKhwai]

They'll readily sell insurance for you too. In fact, that may actually be a good idea.

[tango]

Some banks will grant you an interest rate reduction, albeit small; though it is significant over time.

Bangkok Bank

" Customers who apply for the Home 1st credit protection insurance for at least 10 years or over their

mortgage period will receive a 0.25% discount per annum off the interest rate for the first year." - can't tell exactly but it may apply to houses bought or bult in an approved 'housing ptoject.

Loans for buying Bangkok Bank properties are significantly lower over the life of the mortgage; but, then that may be offset by the price you pay them for a property.

If you wife is a government employee, teacher par example, rates are even lower.

Probably wise to compare.

[tango]

^ Further to my last:

http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/HomeLoans/InterestRates/Pages/Default.aspx

Here is a similar deduction(s) on home insurance for Kasikorn fans:

http://www.kasikornbank.com/EN/PERSONAL/LOANS/KHOMELOAN/Pages/KHomeLoanKasikorn.aspx

Special conditions

The borrower will get an additional loan rate reduction of up to 0.25 percent during the first year by following these criteria if

- they take out “Pitaksin-Home/Senior/Care” with the 100-percent sum of K-Home Loan limit insured, and selects the protection period that covers the entire loan term. ( 0.25% reduction)

- they take out “Pitaksin-Home/Senior/Care with other conditions as specified from the above condition no 2.1 (0.12% reduction)

[Jobo]

When I took out a home mortgage with BBL they wanted only a mortgage insurance policy, not a life insurance policy. Underwritten by them of course.

However I'm not sure that you don't have the option of taking that insurance policy with any insurer,including the life insurance if that's what they want.

The premiums from the bank are grossly marked up compared with other insurers.

I note somebody said that if you insure with them they'll give you 0.25% off the interest rate for the 1st year only - may be worth it.

Remember that the mortgage insurance policy expires as soon as the mortgage is discharged. May be that the life insurance is too!