Thai Mortgage Rates

[reflectionx]

We are looking to possibly partially finance a house in Thailand, so I have few questions about mortgage rates in Thailand.

My understanding is that the monthly amount is fixed, and the variable is the amortization, correct? Also, that implies that there is no such beast as fixed rate mortgage?

The rate we have been quoted now is 7%. This seems a bit on the high side to me (compared to the 3% in north america). Are there "discounted" rates? for example, the Canadian banks now publish rates of 6%, but mortgages close around 3%.

Finally, is there a historical chart of the Thai mortgages rates? Kinda worried if the rate is 7% during global slowdown, what would it be when things pick up ...

thanks

[dave111223]

Your assumptions are pretty much correct.

Also all banks have mostly the same rates, but they do offer various different promotions (such as 3% discount for the first 2 years, or .5% discount for the life the mortgage etc...), but they all use very similar MLR starting point base rate.

You've got to shop around for the promotion that best suits your needs, if you plan to pay off the mortgage quickly get a rate which is heavily discounted at the start of the loan, and viceversa.

Also factor in hidden costs as this can vary a huge amount between different banks, ask about loan fees, insurances etc...this can save you a lot of money (or cost you alot if you choose the wrong bank).

Comparing it to the rates in other countries for other currencies in fairly irrelevant.

[TommoPhysicist]

Home loans are calculated using the variable MRR as a base ..... currently MRR=8%

Most banks are offering MRR -1%, with a special fixed rate offer for the first year or two (7% is already discounted).

Beware the compulsory life insurance they don't tell you about until the last minute, seems to be about 5% of the loan amount.

[dave111223]

Most home loans I've seen use MLR as the base, I thought MRR was for business loans...? (MRR is higher than MLR)

Edited March 19, 2013 by dave111223

[TommoPhysicist]

Most home loans I've seen use MLR as the base, I thought MRR was for business loans...? (MRR is higher than MLR)

SCB quote in my hand clearly says MRR.

Dunno what the other banks use as they wouldn't give a big enough loan, so didn't get to the written offer stage.

BKB give explanation here, they also say MRR

http://www.bangkokbank.com/BangkokBank/WebServices/Rates/Pages/LoanInterestRates.aspx

"MLR for corporate customers in good standing"

"MRR for retail customers in good standing"

Edited March 19, 2013 by TommoPhysicist

[dave111223]

Krung Sri homeloan uses MRL: http://www.krungsri.com/en/consumer-detail.aspx?did=130&tid=2⊂=true

SCB: http://www.scb.co.th/en/personal-banking/loans/home-loan/housing-loans

Fixed or floating Interest rate based on MLR.

I also have a Krung Thai loan that is on MLR.

MRR is about 1% higher than MLR.

Edited March 19, 2013 by dave111223

[TommoPhysicist]

Yes, strange .... SCB website says MLR ......... our quote says MRR.

Must be something to do with the competence levels of the banking staff (either those typing the letters or those typing the website).

[TommoPhysicist]

Krung Sri homeloan uses MRL: http://www.krungsri.com/en/consumer-detail.aspx?did=130&tid=2⊂=true

SCB: http://www.scb.co.th/en/personal-banking/loans/home-loan/housing-loans

Fixed or floating Interest rate based on MLR.

I also have a Krung Thai loan that is on MLR.

MRR is about 1% higher than MLR.

Is your loan at the MLR or discounted.

We are offered 4.5% first year, MRR -1% for 2 years, MRR -1.25% for the rest.

[dave111223]

I've got a Krung Sri loan that is MRL-2% for the life of the loan.

Another Krung Thai that was something like MRL-4% for first year, then MLR-0.5% for the life.

P.S. If you go to a Home Loan Expo they normally have good promotion rates.

Edited March 19, 2013 by dave111223

[Nomad97]

As someone said earlier, you should be aware of the additional costs associated with the mortgage. These are:

1. 2,500 Baht to lodge an application for a mortgage.

2. 1% of amount of mortgage to the Land Office to endorse the land deed for the bank, e.g. a 1.5 million baht loan would cost 15,000 baht - payable to the Land Office.

3. A further admin fee levied by the bank after loan approval - 890 Baht.

4. Life insurance for mortgagee and house insurance against fire - somewhere in the order of 35,000 baht on a 1.5 million Baht loan over 10 years.

5. Government tax imposed by the land office, usually shared 50 -50 between the seller and the buyer. This is dependent on purchase price of the house and land.

NB. These costs are based on a recently approved 1.5 million Baht mortgage from the Bangkok Bank. Total additional cost on 1.5M mortgage can easily top 70,000 Baht.

[KhunPadThaiAroy]

Hi all,

i wanted to post a topic for since these is one here, i shall ask here.

i intend to buy a townhouse cost about 1.5m

im married with my thai wife in thailand.

can someone give me a brief explaination if i am able to take home loan from bank and possible over a 5 years period.

thanks a million

[Farang0tang]

Hi all,

i wanted to post a topic for since these is one here, i shall ask here.

i intend to buy a townhouse cost about 1.5m

im married with my thai wife in thailand.

can someone give me a brief explaination if i am able to take home loan from bank and possible over a 5 years period.

thanks a million

If your asking if Farang can take out a mortgage - not sure - probably depends on individual circumstances.

But you can get the wife to take out a mortgage, with you as "backer". (caveat: beware of pitfalls)