Snake on side of road On Nut

[JimmyTheMook]

Anyone have a link to the approximate current interest rates on home loans for here in Thailand ?

Or can someone quote a ballpark percentage rate as to where they are currently at ?

[TommoPhysicist]

Bangkok Bank quoted me 3% last week.

[JimmyTheMook]

Bangkok Bank quoted me 3% last week.

Fixed rate ?

or floating ?

[CWMcMurray]

No fixed home loans in Thailand as far as I am aware

Most offer a low fixed rate for first year or first couple of years and them it goes to a floating rate

Floating rates are usually quoted as MLR - "a certain percent"

For example, we took out a mortgage with Siam City (now Thanachart) and rate is MLR - 1.60% (current MLR is 7.375% but it was lower a few years back and will probably be lower again in the future)

Banks tend to offer various options (usually 3) and you can then pick which one you like

You can find example from Bangkok Bank website below (MLR for BBK is currently at 7%)

http://www.bangkokbank.com/BangkokBank/PersonalBanking/DailyBanking/Loans/BualuangHomeLoan/Pages/HighIncome.aspx

From Thanachart ...

http://www.thanachartbank.co.th/TbankCMSFrontend/personalendetail.aspx?pname=personal&ptypeid=9&proid=7

Edited December 12, 2012 by CWMcMurray

[PattayaPhom]

Bangkok Bank quoted me 3% last week.

Thats a teaser and would only be an introductory rate......most variable rates are currently 7%, many options for the first 6,9,12 months etc at a reduced rate but it will incease. Thanachat are currently offering 1.5% off variable for lifetime of loan

[trajan]

my UOB Thai condo loan was MLR - 0.5% = 7.25% (last I checked)....

but Ive just prepaid my entire loan, so that fat interest rate is gone

[BEVUP]

Just picking brains here

Scenario

In the process of buying second house which is established in a new Moo Baan ( Housing estate )

Since my wife doesnt work ( looking after son & mother) & I dont have the 50% deposit required by banks for a loan & to go gaurantor I Purchased directly from the developer who is providing the finance

Deal is 500,000 deposit & no doubt the 2% Gov. Trans Fee

& Repayment calculations of 0.75% P/MTH over 5 yrs ( Plan to pay out much earlier )

Also have lawyer checking But just gathering thoughts on this

[TommoPhysicist]

@Bevup

If you buy through a developer they can get your misses a home loan of 90%, with you as guarantor.

She doesn't need to have a job, they have 'friends' in the bank to smooth the way.

I just saw some new houses, different moobans

2.2M, builder said 200k deposit, the other 2M over 28 years.

1.8M, office say 100k deposit, 1.7M over 25 years.

Thai national no previous employment history.

3% for the first year then 7% (variable) for the next 30, but they will only offer a maximum length up to her age is 65.

Find a different developer, one with links to a bank.

Edited December 26, 2012 by TommoPhysicist

[BEVUP]

@Bevup

If you buy through a developer they can get your misses a home loan of 90%, with you as guarantor.

She doesn't need to have a job, they have 'friends' in the bank to smooth the way.

I just saw some new houses, different moobans

2.2M, builder said 200k deposit, the other 2M over 28 years.

1.8M, office say 100k deposit, 1.7M over 25 years.

Thai national no previous employment history.

3% for the first year then 7% (variable) for the next 30, but they will only offer a maximum length up to her age is 65.

Find a different developer, one with links to a bank.

Thanks Tommo

But the situation is that all the other Moo Baans in the area are more expensive the cheapest running at 3 M which are all sold

Maybe about 4 Moo baans in area (upper class )

Need this one as its in good location 1 km from school & everything else

I will certainly be takking your inf along to the next meeting with guns blazing

[TommoPhysicist]

@Bevup

If you buy through a developer they can get your misses a home loan of 90%, with you as guarantor.

She doesn't need to have a job, they have 'friends' in the bank to smooth the way.

I just saw some new houses, different moobans

2.2M, builder said 200k deposit, the other 2M over 28 years.

1.8M, office say 100k deposit, 1.7M over 25 years.

Thai national no previous employment history.

3% for the first year then 7% (variable) for the next 30, but they will only offer a maximum length up to her age is 65.

Find a different developer, one with links to a bank.

Thanks Tommo

But the situation is that all the other Moo Baans in the area are more expensive the cheapest running at 3 M which are all sold

Maybe about 4 Moo baans in area (upper class )

Need this one as its in good location 1 km from school & everything else

I will certainly be takking your inf along to the next meeting with guns blazing

You seem to be dealing with a developer who is funding the loan themselves ....... they charge a higher interest rate.

Bank or developer who uses a bank is the best way to go. They can do all sorts of dodgy deals with the bank.

You can usually get a home loan of 50% over 30 years from Kasikorn Bank without your wife having employment, and foreigner guarantor. Go along to a Kasikorn Bank and ask them directly.

Edited December 26, 2012 by TommoPhysicist

[Soutpeel]

Just picking brains here

Scenario

In the process of buying second house which is established in a new Moo Baan ( Housing estate )

Since my wife doesnt work ( looking after son & mother) & I dont have the 50% deposit required by banks for a loan & to go gaurantor I Purchased directly from the developer who is providing the finance

Deal is 500,000 deposit & no doubt the 2% Gov. Trans Fee

& Repayment calculations of 0.75% P/MTH over 5 yrs ( Plan to pay out much earlier )

Also have lawyer checking But just gathering thoughts on this

Why do you need 50% down ?......I co-signed on a 90%+ loan from SCB some years ago for Mrs Soutpeel, before she was Mrs Soutpeel and she wasnt working at the time and SCB took only my income into consideration, if memory serves the only upfront cash was about THB 55k, they did want a letter from the Thai company I was working for, plus 12 months payslips and obviously copies of the PP and WP....but it was very easy with SCB.

If this a second purchase why cant you use the first house as collateral on the 2nd to secure the loan ?

Developer financing you will charge you a lot more, as typically they will take a home loan out in their name with bank and put a mark up on it, how can you pay a 2% transfer fee on something you will not own until the mortage is paid off

[Soutpeel]

I will certainly be takking your inf along to the next meeting with guns blazing

You will not be going in guns blazing..... ....its not your right to get a loan, its upto the finanical institution your dealing with...its their money...so one could suggest...blazing guns would be rather counter productive...

[TommoPhysicist]

.............. how can you pay a 2% transfer fee on something you will not own until the mortage is paid off

Because house Chanote is immediately registered in Thai partners name, loan details are recorded on back of Chanote until debt paid off.

[Soutpeel]

.............. how can you pay a 2% transfer fee on something you will not own until the mortage is paid off

Because house Chanote is immediately registered in Thai partners name, loan details are recorded on back of Chanote until debt paid off.

Well all I can tell you, having been through this...never paid any 2% over, as mentioned in the previous post my total up front cash was THB 55k and that was the application fee, my understand is once the loan is paid off, there is a transfer duty, which I assume is the 2% ?

[BEVUP]

Just picking brains here

Scenario

In the process of buying second house which is established in a new Moo Baan ( Housing estate )

Since my wife doesnt work ( looking after son & mother) & I dont have the 50% deposit required by banks for a loan & to go gaurantor I Purchased directly from the developer who is providing the finance

Deal is 500,000 deposit & no doubt the 2% Gov. Trans Fee

& Repayment calculations of 0.75% P/MTH over 5 yrs ( Plan to pay out much earlier )

Also have lawyer checking But just gathering thoughts on this

Why do you need 50% down ?......I co-signed on a 90%+ loan from SCB some years ago for Mrs Soutpeel, before she was Mrs Soutpeel and she wasnt working at the time and SCB took only my income into consideration, if memory serves the only upfront cash was about THB 55k, they did want a letter from the Thai company I was working for, plus 12 months payslips and obviously copies of the PP and WP....but it was very easy with SCB.

If this a second purchase why cant you use the first house as collateral on the 2nd to secure the loan ?

Developer financing you will charge you a lot more, as typically they will take a home loan out in their name with bank and put a mark up on it, how can you pay a 2% transfer fee on something you will not own until the mortage is paid off

Thanks Soutpeel

will remember that one

By the way all this info is great, gives a bit more if an edge

[TommoPhysicist]

.............. how can you pay a 2% transfer fee on something you will not own until the mortage is paid off

Because house Chanote is immediately registered in Thai partners name, loan details are recorded on back of Chanote until debt paid off.

Well all I can tell you, having been through this...never paid any 2% over, as mentioned in the previous post my total up front cash was THB 55k and that was the application fee, my understand is once the loan is paid off, there is a transfer duty, which I assume is the 2% ?

What does your Chanote say?

[Soutpeel]

.............. how can you pay a 2% transfer fee on something you will not own until the mortage is paid off

Because house Chanote is immediately registered in Thai partners name, loan details are recorded on back of Chanote until debt paid off.

Well all I can tell you, having been through this...never paid any 2% over, as mentioned in the previous post my total up front cash was THB 55k and that was the application fee, my understand is once the loan is paid off, there is a transfer duty, which I assume is the 2% ?

What does your Chanote say?

Dont know the banks got it and I cant read Thai...

[CWMcMurray]

OP, you mention this is a second property...

If so and you have enough equity in the first, you can refinance the mortgage on the first or take out a mortgage on the first and then just buy the the second straight out.

[BEVUP]

Good one Soutpeel

Thats why i engaged a lawyer since we are not talking pocket change

As for the first baan that is another story so cant do

its been good that you have provide good advise & i did laugh at Soutpeels response but the bank doesnt have yet

2nd meeting with lawyer tommorow

Am looking at a no panelty clause for early payment & if no have will try to drop the interest rate to 0.55% as they will be making alot of money either way

[Soutpeel]

Am looking at a no panelty clause for early payment & if no have will try to drop the interest rate to 0.55% as they will be making alot of money either way

If you are financing through a bank...guess again on the penalty clause for early repayment....if you pay the place off in anything less than 3 years or less...they will hit you, as they are not making any money on the deal (this came from an SCB manager, when I did mine directly)..... 0.55% ?.....decrease in interest rate ? or interest rate..as the current rate is somewhere around 7%..

[TommoPhysicist]

Am looking at a no panelty clause for early payment & if no have will try to drop the interest rate to 0.55% as they will be making alot of money either way

If you are financing through a bank...guess again on the penalty clause for early repayment....if you pay the place off in anything less than 3 years or less...they will hit you, as they are not making any money on the deal (this came from an SCB manager, when I did mine directly)..... 0.55% ?.....decrease in interest rate ? or interest rate..as the current rate is somewhere around 7%..

0.55% PER MONTH!

[Soutpeel]

Am looking at a no panelty clause for early payment & if no have will try to drop the interest rate to 0.55% as they will be making alot of money either way

If you are financing through a bank...guess again on the penalty clause for early repayment....if you pay the place off in anything less than 3 years or less...they will hit you, as they are not making any money on the deal (this came from an SCB manager, when I did mine directly)..... 0.55% ?.....decrease in interest rate ? or interest rate..as the current rate is somewhere around 7%..

0.55% PER MONTH!

oh is that what he is on about....I am used to seeing annual interest rates quoted....in that case dont think he will get down to 6.6% p.a.

[BEVUP]

Am looking at a no panelty clause for early payment & if no have will try to drop the interest rate to 0.55% as they will be making alot of money either way

If you are financing through a bank...guess again on the penalty clause for early repayment....if you pay the place off in anything less than 3 years or less...they will hit you, as they are not making any money on the deal (this came from an SCB manager, when I did mine directly)..... 0.55% ?.....decrease in interest rate ? or interest rate..as the current rate is somewhere around 7%..

0.55% PER MONTH!

oh is that what he is on about....I am used to seeing annual interest rates quoted....in that case dont think he will get down to 6.6% p.a.

Thanks Fellas

OK forgot about that 3 yr thing where i had actually read somewhere before

The interest rate is 0.75 % Per/ Month = if my maths is ok 12 x 0.75 = 9 %

Developer said this was due to the company backing you with the finance

As to this date it does seem a bit shonky

Did a check using Bangkok Bank calculator & dicovered the company will be earning a minimum of 2000 bht p/mth

[Soutpeel]

Thanks Fellas

OK forgot about that 3 yr thing where i had actually read somewhere before

The interest rate is 0.75 % Per/ Month = if my maths is ok 12 x 0.75 = 9 %

Developer said this was due to the company backing you with the finance

As to this date it does seem a bit shonky

Did a check using Bangkok Bank calculator & dicovered the company will be earning a minimum of 2000 bht p/mth

told ya so... ....the developer will take out a loan with a bank in their name to finance you, the interest rate they get will most likely be better than an individual would get and they put a mark up on it......if you assume your 9% p.a. is correct and the average rate is 7%, they are making +/-2% p.a. for doing nothing, and if they are getting a better than 7% base rate from the bank, they are making even more money