Home Loan And Future Monthly Overpayments

[naboo]

My wife is looking at borrowing approximately 1,000,000B to purchase a house. She has been approved by the Government Savings Bank but for a 25 year term.

In the first few years, she expects to be able to afford to repay approximately 12,000B/month. In 2 years time, she will have paid off her car loan and will be able to pay off considerably more monthly, approximately 20,000B/month.

Does anyone have first experience of:

i) overpayments with the Government Savings Bank in the first few years or later on

ii) overpayments with other banks?

Also - the lady we're buying off didn't like the idea of using Government Savings Bank as she said they are very slow whilst other banks would be able to complete in a week to 10 days. Is this true? My wife isn't in much of a rush, but the seller seems to be, maybe a possibility of shifting the cost of the land transfer tax back to her if she's desperate.

Edited April 12, 2013 by naboo

[AnotherOneAmerican]

SCB and BKB are happy with any monthly payments in excess of the minimum.

They send you a new statement listing outstanding amount and minimum monthly repayments at the start of each year.

Assuming 1,000,000bht loan at 7% over 25 years, minimum repayments would be approx 7,000bht/month

They will likely add compulsory life insurance to the loan, a one-off payment of about 50,000bht (20 years insurance).

[breadbin]

Why not ask the lending provider?

Or more to it, get your wife to ask them as its nowt to do with you.

Again, farang trying to big himself up when wife can ask simple questions.

[naboo]

Why not ask the lending provider?

Or more to it, get your wife to ask them as its nowt to do with you.

Again, farang trying to big himself up when wife can ask simple questions.

In Thai law, debts within a marriage are the responsibility of both, making it to do with me.

My wife asked the government savings bank, but they just said it was a 25 year mortgage and you pay over 25 years. Banks don't like you to repay early as it costs them interest.

I could get my wife to go to all the banks and ask each, but as this is a community forum I thought a thread like this might help my wife and others in the future choose a provider.

The other topic I found contained equally unhelpful comments as yours.

Thanks to anotheroneamerican, Siam Commercial will be an alternative, BKK rep told her no unless 50% down and me as guarantor. She doesn't want to put 50% down.

[aussiebebe]

I've no experience, but this was discussed in another thread - apparently SCB will let you overpay, just call them and ask.

[fletchsmile]

Best to check with the bank and ask to read the terms and conditions. GSB often has policies other banks don't because it's not run along purely commercial lines but also as an outlet for govt policies.

On our mortgage with Stan Chart a few years back: there was no penalty for early repayment by us. We often overpaid and they adjusted the capital and interest amounts. We paid the 10 year term in just over 3 years. Once the fixed rate finished, the rate went up and in the environment I decided better to just pay it off with a lump sum. They often had a policy that if the customer pays it off then no penalty, but if the loan is transferred to another bank there is a penalty. Terms could vary tho'

Fletch

[BrianCR]

You can make any amount of payment over the agreed basic to any bank but (from personal experience) both Government Savings Bank and "KBank" make a charge if the loan is repaid early. Incidently if your wife is a Government employee she will receive special low interest rates with Government Savings Bank