Snake on side of road On Nut

[rcox81]

I have read some of the other threads on this topics but the situations for the OPs in those threads didn't really match mine.

Some key points:

-I have been living in Thailand about 1 year, using Tourist Visas

-I have had a K Bank account the entire time

-I have been making regular deposits into my bank account (around 80,000Baht on average each month)

-I have been paying my rent through cash transfers using my K Bank account (hopefully showing that I can pay responsibly)

_______________

My main question:

What would I need to do to get a Condo mortgage in this case? I want to buy a 2-3 million Baht condo and put about 10% as a down payment. Basically, I just want to know what I would need to do to get a mortgage. I called K Bank today and asked about getting a simple credit card and the guy told me that it would be difficult because I dont have a work permit. I am just really tired of paying rent and want to get started on buying a place.

[noob7]

Contact a Thai Bank branch in S-Pore.

Also check with Siam Commercial/Bangkok Bank in Thailand, asking for a mortgage via a Singapore branch!

Edited November 14, 2012 by noob7

[rcox81]

Contact a Thai Bank branch in S-Pore.

Also check with Siam Commercial/Bangkok Bank in Thailand, asking for a mortgage via a Singapore branch!

thanks for the response

do you think a 10% down payment is possible? How about repayment terms? Possible to get more than 10 years?

[noob7]

Usually (afaik) they'll have to finance minimum 70%, as soon land is involved.

(The Bank will be the 'needed Thai' for the land deal, till you paid the bank off. No mia/gf/company needed for this time period!)

Minimum 70% means to me, 90% is only a bigger deal for them.

But check it with some major Thai Banks with a branch in Singapore.

Also not every bank employee in Thailand knows about. "Farang? No WP? No way!"

Go to the 'main' branch in your area, or ask via mail in S-Pore.

I do not know, if you qualify, to buy a condo this way, but you don't need, to go to S-Pore, to find that out.

All paperwork will be done in Thailand and be posted to Singapore.

Edited November 14, 2012 by noob7

[Naam]

Contact a Thai Bank branch in S-Pore.

Also check with Siam Commercial/Bangkok Bank in Thailand, asking for a mortgage via a Singapore branch!

Singapore is only financing selected Bangkok and Phuket locations, foreigner allocation mandatory.

[yoshiwara]

Source of funds and age are important factors.

Also I would be very surprised at the possibility of a 90% mortgage, irrespective of the wisdom of even thinking about it.

[Naam]

Source of funds and age are important factors.

Also I would be very surprised at the possibility of a 90% mortgage, irrespective of the wisdom of even thinking about it.

90% = no way!

[noob7]

Source of funds and age are important factors.

Also I would be very surprised at the possibility of a 90% mortgage, irrespective of the wisdom of even thinking about it.

90% = no way!

No ploblem with a fixed deposit (~20%) account in the very same bank.

But I only know the side from someone, who wanted to avoid to have any Thai-Thai in the papers, and wanted to speculate for a quick and profitable sale. A Singapore based Thai Bank is a better partner. More reliable, under Singapore laws, ....!

But I think, it really depends on the source of funds, the price of the property and the expectation, if or if not the bank sees a bubble for this kind of property or the area!

If the condo is changing the 5.times the owner, the bubble expectation is pretty big, methinks. The profit is already taken!

Singapore is only financing selected Bangkok and Phuket locations

Btw: Phuket works fine, for me and the one or the other guy, I know!

Edited November 14, 2012 by noob7

[PattayaPhom]

Banks have tightened up this year...Chonburi/sattahip area is 60% max for Foreigner and WP mandatory......maybe different elswhere....Bangkok bank Singapore as mentioned has certain deals.

[noob7]

Banks have tightened up this year...Chonburi/sattahip area is 60% max for Foreigner and WP mandatory......maybe different elswhere....Bangkok bank Singapore as mentioned has certain deals.

For Singapore branches it is MINIMUM 70%.

Because they wanna be the 70% Thai in the book. Safety first, you know?

[starship]

As others have mentioned i think 60/70% is normal. I think you will find it very difficult to get a mortgage if you are not working. You say you transfer 80k baht a month into your kbank account. This shows proof of a decent income which is in your favour but with no WP it offers the bank no permanent guarantee of funds. If you have a Thai gf you may be able to buy in her name with you as guarantor based on your income, but again WP may be required. Banks generally want a guarantor of some kind if their are any issues and of course you could have a Thai guarantor for yourself but i think this would be hard to find! As is usual here you need to try a lot of different banks as you will get different answers form each. It also can help sometimes if you know a Thai person who can help.

The other option is if you are single, look for a cheaper place to rent or buy. If you walk around areas you will find prices a lot cheaper than classified ads and agencies. In the sukhumvit area of Bangkok if you look in the areas from Pra kanong BTS outwards you will find affordable places to rent or buy depending upon what you will be prepared to accept. Rents will be from 3000-5000 bt p/m for studio's 22sqm/30sqm upwards. 30sqm studios to buy start around 6-700,000 baht. These are obviously in older, dated property's and may be a bus/taxi ride away from the skytrain but you could renovate one affordably and make it quite nice. If you do not need a shiny new condo next to the skytrain these are massively cheaper. New build prices have been going up substantially in the last five years as land and building material prices have increased. Also for foreigner's, the value of their currency in relation to the baht has declined substantially.

Something to consider.

[fletchsmile]

Very unlikely you would get from a Thai bank given your criteria and info supplied. Possible options to explore further:

1) Thai wife guaranteed by you at a Thai bank in Thailand

2) Being a private banking client (USD1mio up of assets) of an overseas bank that would lend in foreign currency, particularly if they have a branch or subsidiary in Thailand

3) Bangkok Bank Singapore and UOB Singapore used to do a very small volume of this. Don't know if they still do. Last I heard a couple of years back Bank of Thailand was frowning on it, so they stopped -at least for a while. Your amounts were below their levels if I recall correctly. These are also expensive to make it worthwhile for the bank given the complexities so high fees would make it uneconomic anyway. Also your downpayment would have been too small and loan to value (LTV) too high

4) "Other" finance providers. There are some companies - not banks - who broadly speaking buy in a company vehicle name and lease it back until final payment received and title can pass to you

5) Talk direct to the developer. Some in places like Pattaya have done schemes for foreigners with financing direct from developer

The last two are probably your best bet.

This topic comes up from time to time on Thai Visa:

http://www.thaivisa....for-foreigners/

http://www.thaivisa....ge-in-thailand/

there are more threads as I know I've replied on more...

Edited November 14, 2012 by fletchsmile

[TexasRanger]

I have been offered 60% over 10 or 15 years, no work permit based on payslips and years left to work. When I say "I" the mortgage will be in wifes name guaranteed by me.

Sent from my HTC Desire using Thaivisa Connect App

[steveromagnino]

From a Thai bank perspective, it seems unlikely.

1. no proof of income or job (at least from the information you are providing)

2. no proof of permanence in Thailand (no WP, no job, no proper VISA status)

3. small size of loan (peversely, if they go to the effort, then they would rather earn some money and they can't do this on a 2-3 million baht condo)

4. low collateral (you imply that you would pay 10% downpayment, this is low by Thai standards)

I would contact UOB as your first port of call, for onshore banks they are the only one that I know of likely to consider to lend to a person with the details you've listed. You can check but I would probably discard borrowing from Singapore, aside from the currency risk, I am fairly sure they won't do such a small deal (under $100k USD) anyhow.

Given the small price of the condo, have you thought about just waiting 3 years and buying the place outright?

I would also point out the usual loan to value (or LTV) is maximum around 70-80% based on the bank's valuation of the property; they usually low ball it though especially for 2nd hand property (I was offered a mortgage at 75% LTV but they valued the condo at close to 50% of what I paid so I really could only borrow around 50% in the end, ok by me as it was a cheap place (around 4m a few years back) anyhow. So...if you want to run a fairly high LTV (i.e. borrow a high percentage) banks will tend to only lend like that on new developments, not older developments where the secondary market is not very transparent.

I would not be particularly inclined to buy using someone else's name, as this will not enable you to easily own the property yourself should your relationship with the other person change, and since it is a condo, there is not much reason to do so legally anyhow. however, it might be an angle if you really feel you need to buy.

In general renting here is not expensive, so perhaps you are better off to rent a cheaper place, and then purchase outright when you have a better track record.

For me, if I was working at a bank and handling credit applications...even a person 1 year in a job and 80,000b income...that's not a particularly good reason to lend; Thai banks would look for 2 years or more in the same job as an asset, less than 2 years is already problematic. You don't even reach that (as you don't appear on paper to work here in Thailand).

Another option is to borrow in the country where you are actually earning money and use that to then purchase property. If you are only talking 2-3 million, again that's a personal loan of 2-3 years, so easy enough to do it that way, and just buy it outright.

[yoshiwara]

If someone who wants to buy a property does not have the savings to purchase a 2-3m baht apartment outright one wonders about their overall financial position.

[TexasRanger]

If someone who wants to buy a property does not have the savings to purchase a 2-3m baht apartment outright one wonders about their overall financial position.

Wow!

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[noob7]

If someone who wants to buy a property does not have the savings to purchase a 2-3m baht apartment outright one wonders about their overall financial position.

I don't know the OP's options, also i do not know, if there really is another big chance for it, but:

During the time, the EURO was becoming stronger and stronger, it was a really good deal, to buy properties at a rate of ~44, with mortgage contract. And to pay it off with Euro, transferred into Thailand later, but changed into Thaibaht at about 50 Baht/€

[yoshiwara]

If someone who wants to buy a property does not have the savings to purchase a 2-3m baht apartment outright one wonders about their overall financial position.

I don't know the OP's options, also i do not know, if there really is another big chance for it, but:

During the time, the EURO was becoming stronger and stronger, it was a really good deal, to buy properties at a rate of ~44, with mortgage contract. And to pay it off with Euro, transferred into Thailand later, but changed into Thaibaht at about 50 Baht/€

First of all that is hindsight and secondly I really do fail to see the logic of buying a property through the acquisition of debt when one's total financial position is not that good in the first place.

I seriously suspect that the attempt to get a heavy percentage mortgage is backed by a view to walk away at any time they wish with an outside bet on capital appreciation.

The banks are not silly. Even if borrowing a smaller percentage they will want to see past bank statements to ascertain affordability. the days of taking a one-way punt are over.