Thai Bank 'home Loan' Guarantee Rate

[TommoPhysicist]

OK guys, I know some of you have home loans from Thai banks.

Now the bank agreed a loan but slapped a 'guarantee/insurance' price on the top.

Home loan 1.5M ............ guarantee 80k (28 years)

So is this in line with what you were asked to pay, seems a bit high to me.

[Lite Beer]

Moved to Housing.

[TommoPhysicist]

I'm assuming this is a SCB life insurance product with the entire payment upfront.

[Neeranam]

The bank(Krung Thai) are trying to sell me insurance for 15k a year but I don't want it until I have something to lose in a few years. No guarantee necessary. Do you mean like a downpayment? I did give 40k downpayment on 2.5 mill over 16 years.

[BB1955]

We just did one with SCB which I had to sign had to but life insurance on the wife 100,000 baht for the life of the loan . .....

[TommoPhysicist]

We just did one with SCB which I had to sign had to but life insurance on the wife 100,000 baht for the life of the loan . .....

Life insurance on the wife ....... with you as beneficiary?

What interest rates did you get, 1st year then rest?

Edited March 16, 2013 by TommoPhysicist

[Neeranam]

I thought it a good idea to have life insutance on my wife(house in her name) and also a will putting it in my kids names if she died. She wasn't very happy with the idea; maybe she thinks I'd get rid of her:o

[BIGJIMMY]

What are the monthly payments like on these loans, how much are you paying back in total??

[TommoPhysicist]

Hard to tell, BKB were charging 6.25% with the first year at 2%

SCB 7% or maybe 8% ........ trying to get the rate out of them now.

The big scam is the life insurance, the whole period of the home loan up front or no loan, in our case 80kbht.

A 1.5M loan over 30 years is going to have repayments in the region of 10kbht/month

Edited March 17, 2013 by TommoPhysicist

[thunder30101]

Why wouldnt a bank want some assurance that the loan will be protected by some type of insurance if the primary payee were to expire ? I think the big scam here is that at your quoted numbers above you will be paying 3.6 mil for a 1.5 mil house at the end of your loan. I never go over 15 yr.s on a home loan, my payment may be bigger but overall saves tons of money long term.

[BIGJIMMY]

We're looking to borrow 3 mil against our property and would like to pay it back over 10 years, anyone with a similar scenario????

[USNret]

Why wouldnt a bank want some assurance that the loan will be protected by some type of insurance if the primary payee were to expire ?

The collateral is the house. If the house is truly worth what the OP paid, and if he paid a down payment, then the value of the house should more than cover the remaining value of the loan, sans insurance.

[rgs2001uk]

Why wouldnt a bank want some assurance that the loan will be protected by some type of insurance if the primary payee were to expire ? I think the big scam here is that at your quoted numbers above you will be paying 3.6 mil for a 1.5 mil house at the end of your loan. I never go over 15 yr.s on a home loan, my payment may be bigger but overall saves tons of money long term.

Well its no different from farangland then is it?

Borrow say $100k and pay it off over 25 years, after 25 years you may have paid back about $300k, but whats the house worth in 25 years time, all one big gamble.

The biggest scam is trying to repay the loan early, these sharks want it repaid over the longest time period possible to maximise their profits.

Are 15 year mortgages available in Thailand?

As for banks pushing these dodgy insurance products, they are all at it, reminds me of the UK years ago, everyone wants a piece of your ass and their commission.

If the only way to get a mortgage is by buying one, do what the Thais do, take one out, then cancel it next year.

What are they selling Tommo, prakan cheewit?

[TommoPhysicist]

If the only way to get a mortgage is by buying one, do what the Thais do, take one out, then cancel it next year.

What are they selling Tommo, prakan cheewit?

The 80k is the entire premium for 30 years ...... all paid upfront.

They don't care if you cancel after one year, you already paid in full.

@Thunder

The bigger the monthly repayments the better, it means she can't kick me out of HER HOUSE, cos she can't make the payments.

[Soutpeel]

If the only way to get a mortgage is by buying one, do what the Thais do, take one out, then cancel it next year.

What are they selling Tommo, prakan cheewit?

The 80k is the entire premium for 30 years ...... all paid upfront.

They don't care if you cancel after one year, you already paid in full.

@Thunder

The bigger the monthly repayments the better, it means she can't kick me out of HER HOUSE, cos she can't make the payments.

She can pay if she kicks you out for a richer falang...

[thunder30101]

Ummm shorter term loans have higher payments duh. The house is collateral yes but if a bank gets stuck with it and has to eat any depreciation or damage repairs or a second mortgage then yes there is a reason for insurance. In my home country you wont get a loan without insurance, in fact they will force it on your payment. And I damn sure dont want my wife or kids to be burdened with a house payment she cant make because i was too cheap to pay 80k for the protection and security it provides them if i die. But then most farangs i have known in thailand dont give a shit about anything but themselves.

[TommoPhysicist]

Ummm shorter term loans have higher payments duh. The house is collateral yes but if a bank gets stuck with it and has to eat any depreciation or damage repairs or a second mortgage then yes there is a reason for insurance. In my home country you wont get a loan without insurance, in fact they will force it on your payment. And I damn sure dont want my wife or kids to be burdened with a house payment she cant make because i was too cheap to pay 80k for the protection and security it provides them if i die. But then most farangs i have known in thailand dont give a shit about anything but themselves.

It protects me as she is the wage earner and the loan is offered on her salary. If I die, she gets nothing.

[thunder30101]

My last sentence rings true.

[Neeranam]

Why wouldnt a bank want some assurance that the loan will be protected by some type of insurance if the primary payee were to expire ? I think the big scam here is that at your quoted numbers above you will be paying 3.6 mil for a 1.5 mil house at the end of your loan. I never go over 15 yr.s on a home loan, my payment may be bigger but overall saves tons of money long term.

Well its no different from farangland then is it?

Borrow say $100k and pay it off over 25 years, after 25 years you may have paid back about $300k, but whats the house worth in 25 years time, all one big gamble.

The biggest scam is trying to repay the loan early, these sharks want it repaid over the longest time period possible to maximise their profits.

Are 15 year mortgages available in Thailand?

As for banks pushing these dodgy insurance products, they are all at it, reminds me of the UK years ago, everyone wants a piece of your ass and their commission.

If the only way to get a mortgage is by buying one, do what the Thais do, take one out, then cancel it next year.

What are they selling Tommo, prakan cheewit?

Yes, 15 year mortgages are available depending on your age.

I got a 16 year mortgage with Krung Thai bank. It was either 16,000 baht per month over 25 years(wife getting mortgage) or 21,000 a month over 16 years(me getting mortgage).

[swissie]

Why wouldnt a bank want some assurance that the loan will be protected by some type of insurance if the primary payee were to expire ? I think the big scam here is that at your quoted numbers above you will be paying 3.6 mil for a 1.5 mil house at the end of your loan. I never go over 15 yr.s on a home loan, my payment may be bigger but overall saves tons of money long term.

Well its no different from farangland then is it?

Borrow say $100k and pay it off over 25 years, after 25 years you may have paid back about $300k, but whats the house worth in 25 years time, all one big gamble.

The biggest scam is trying to repay the loan early, these sharks want it repaid over the longest time period possible to maximise their profits.

Are 15 year mortgages available in Thailand?

As for banks pushing these dodgy insurance products, they are all at it, reminds me of the UK years ago, everyone wants a piece of your ass and their commission.

If the only way to get a mortgage is by buying one, do what the Thais do, take one out, then cancel it next year.

What are they selling Tommo, prakan cheewit?

Yes normal scenario. Taking out a loan of 100'000 and after 25 years it will be 3x the amount. A further drawback is, that the weather/climate is hard on buildings in LOS. "Maintainance & upkeep" is a term that Thais seem to have a hard time with.

But still, mortgaging the home (in the wifes name) can have certain advantages for the farang: His initial capital-outlay is small (as opposed to paying in cash for everything on the spot.) Many marriages do not survive the first three years. If that becomes reality, the farang will politely be asked to leave the premisses in any case!

Or the old wisdom: If the inflation rate is higher than the (fixed) mortgage-rate for any lenght of time, this could make the lender the winner in this game.

As for insurances, guarantees etc is concerned: My older step-daughter is working for a major bank in Bkk in the mortgage field. She made it clear to me that selling those "accessories" is good for my bank and good for me. "Can make very good commission for me every month" and while saying this, she had a funny smirk on her face..............!?

Cheers.