Mortgage in Thailand

[ArranP]

Any advice please.

I live in thailand, I am 42, I have custody of my 2 luk krueng children who goto international school here.

My business in the UK, provides me a (generous) monthly income (into my thai bank account). I have accounts and bank statements for my business going back several years.

What options do I have for mortgage to buy a property here in Thailand.

Regards

Arran.

Edited September 7, 2013 by ArranP

[AnotherOneAmerican]

None

[rayongchelsea]

I was in the almost exact position as you.

Couldn't get a mortgage ( nor a credit card) in Thailand but wasn't that interested in trying too hard as my income is mainly in sterling, rental incomes.

You have no work record here. I even had a successful company, work permit etc..but to no avail, no spouse at the time.

Used a broker in the uk, remortgaged on a property in the uk ...set off against rental income.

[ArranP]

I was in the almost exact position as you.

Couldn't get a mortgage ( nor a credit card) in Thailand but wasn't that interested in trying too hard as my income is mainly in sterling, rental incomes.

You have no work record here. I even had a successful company, work permit etc..but to no avail, no spouse at the time.

Used a broker in the uk, remortgaged on a property in the uk ...set off against rental income.

Yes, I'm aware of this option.

The UK (my business) gives much higher return on investment capital than here, therefore its better from a financial perspective, for me to raise funds in Thailand when/if possible.

Edited September 7, 2013 by ArranP

[rayongchelsea]

That makes sense, then best to rent as there are almost no advantages to home ownership here, unless you can find a real bargain.

I presume you would buy in your kids name.

[ArranP]

That makes sense, then best to rent as there are almost no advantages to home ownership here, unless you can find a real bargain.

I presume you would buy in your kids name.

Yes, and hope they don't turf me out when they're older :-)

[TheAceFace]

Mortgage on a condo would be possible, although on a house, without a Thai partner may be tricky, unless you go the company route. Try SCB I had success with them on getting a mortgage for 80% of the new house value. I was working away at the time but the money was coming into Thailand each month, I also did this without a work permit or marriage visa. Just the tourist visa and 6 month's bank statements from me and my wife did the trick........if you know somebody who works in a bank, that could also help.

I was never asked for a work or income history in Thailand.

[AnotherOneAmerican]

Mortgage on a condo would be possible, although on a house, without a Thai partner may be tricky, unless you go the company route. Try SCB I had success with them on getting a mortgage for 80% of the new house value. I was working away at the time but the money was coming into Thailand each month, I also did this without a work permit or marriage visa. Just the tourist visa and 6 month's bank statements from me and my wife did the trick........if you know somebody who works in a bank, that could also help.

I was never asked for a work or income history in Thailand.

You had a wife, he doesn't. Thai wife can get a loan using spouse income.

Thai children can't have debt, so who will he get to own the land?

[TheAceFace]

Mortgage on a condo would be possible, although on a house, without a Thai partner may be tricky, unless you go the company route. Try SCB I had success with them on getting a mortgage for 80% of the new house value. I was working away at the time but the money was coming into Thailand each month, I also did this without a work permit or marriage visa. Just the tourist visa and 6 month's bank statements from me and my wife did the trick........if you know somebody who works in a bank, that could also help.

I was never asked for a work or income history in Thailand.

You had a wife, he doesn't. Thai wife can get a loan using spouse income.

Thai children can't have debt, so who will he get to own the land?

True I have a wife, hence why I mention the condo route or through a company. The Thai wife does not get the loan (it is in both our names and I am the guarantor), Likewise with any names on the title deed, they include myself, wife and children.

There are means and ways to do most things here.

[ArranP]

Mortgage on a condo would be possible, although on a house, without a Thai partner may be tricky, unless you go the company route. Try SCB I had success with them on getting a mortgage for 80% of the new house value. I was working away at the time but the money was coming into Thailand each month, I also did this without a work permit or marriage visa. Just the tourist visa and 6 month's bank statements from me and my wife did the trick........if you know somebody who works in a bank, that could also help.

I was never asked for a work or income history in Thailand.

You had a wife, he doesn't. Thai wife can get a loan using spouse income.

Thai children can't have debt, so who will he get to own the land?

True I have a wife, hence why I mention the condo route or through a company. The Thai wife does not get the loan (it is in both our names and I am the guarantor), Likewise with any names on the title deed, they include myself, wife and children.

There are means and ways to do most things here.

Yes, I heard about the company route, a thai registered company that invoices my UK business to create a thai based income. It would involve taxes and fees.

[worldtraveller]

I have had a mortgage from Krungsri Bank it took a few weeks to sort out but ok, it often depends on the staff you meet first, Less experienced or junior staff always say no and that happened to me as well, but I was advised by a friend to contact a more friendly manager. I had to put a fairly large deposit ( I think it was between 30 - 40%) , and the maximum term they would give me as non Thai was seven years.

I had been using the bank for a few years before and had a good relationship with them. Accordingly getting a credit card from them was not that hard either. Thailand has a national credit bureaux and once you get a loan once and make payments it becomes easier.

Since them I have applied and got credit cards from the same bank Central department and also approved for a loan from Toyota.

Once you are in the system it becomes easier, like everywhere else. The problem is getting there in the first place,

[Arkady]

Mortgage on a condo would be possible, although on a house, without a Thai partner may be tricky, unless you go the company route. Try SCB I had success with them on getting a mortgage for 80% of the new house value. I was working away at the time but the money was coming into Thailand each month, I also did this without a work permit or marriage visa. Just the tourist visa and 6 month's bank statements from me and my wife did the trick........if you know somebody who works in a bank, that could also help.

I was never asked for a work or income history in Thailand.

You had a wife, he doesn't. Thai wife can get a loan using spouse income.

Thai children can't have debt, so who will he get to own the land?

True I have a wife, hence why I mention the condo route or through a company. The Thai wife does not get the loan (it is in both our names and I am the guarantor), Likewise with any names on the title deed, they include myself, wife and children.

There are means and ways to do most things here.

Yes, I heard about the company route, a thai registered company that invoices my UK business to create a thai based income. It would involve taxes and fees.

It's now difficult to register a title deed in the name of a company that has any foreigners associated with it as shareholders, directors or any other capacity (e.g. father of child shareholders). Land departments have instructions to investigate such applications to see if the Thai shareholders are nominees and they will ask them to show how they acquired the funds to invest in the company and buy the property. If anything is suspicious they will usually decline to transfer the deed but could forward the case to the police for prosecution, if they felt inclined.

In any event it is hard to see how a bank would want to extend a commercial loan to a company that is obviously a man of straw with no genuine business to invest in an asset for the shareholders' family to live in that will produce no cashflow in order to service the loan. The loan would have to go straight into the bank's doubtful loan portfolio requiring posting of loan loss reserves equivalent to 50% of the value.

If you need a mortgage, there is little point in trying to jump through hoops to buy property in Thailand. If you had the case a condo would make sense.

[innerspace]

As someone earlier mentioned minors can only be on the title deed if the property is debt free.

So if using a mortgage then cant be in your name (for house) or your kids. Company is a grey but technically illegal way.

Gf or wife is all down to level of trust....both happy and horror stories.

If you want to put in kids names then forget the mortgage.

[PattayaPhom]

Considering the interest rates here compared to UK you would be better borrowing there, I see even personal loans are only 4.9%. My experience of mortgages here is that there needs to be an income in Thailand plus tax records in Thailand either by a Thai or their foreign spouse. Also if you are registering in kids name you will not be able to have a Thai based loan on the property.

[AnotherOneAmerican]

Considering the interest rates here compared to UK you would be better borrowing there, I see even personal loans are only 4.9%. My experience of mortgages here is that there needs to be an income in Thailand plus tax records in Thailand either by a Thai or their foreign spouse. Also if you are registering in kids name you will not be able to have a Thai based loan on the property.

Tax records in Thailand - not required.

[mccw]

As a way to get in to building the good credit rating one can get a credit card with out any employment etc if you back it up with a savings account of equal value to the line of credit requested. After six months of paying this card off every month doors then open to car and other finance apparently because you have a proven history.

[aussiebebe]

I ended up saving and buying a small condo after originally thinking that I'd get a mortgage. I asked several banks.
If you've already looked into how much sales tax you can expect to pay when you sell a condo in Thailand and you still want to buy, your best bet is to use your savings to buy and then pay yourself back (ie. mortgage yourself so to speak).

[PattayaPhom]

Considering the interest rates here compared to UK you would be better borrowing there, I see even personal loans are only 4.9%. My experience of mortgages here is that there needs to be an income in Thailand plus tax records in Thailand either by a Thai or their foreign spouse. Also if you are registering in kids name you will not be able to have a Thai based loan on the property.

Tax records in Thailand - not required.

We have arranged mortgages for clients through SCB and Krung Thai, each time payment of tax by either party has been required, if not available the loan has been refused. This is my experience, lending criteria does not seem to have national consistency. The OP should start with his local banks.

[Johnniey]

I have had a mortgage from Krungsri Bank it took a few weeks to sort out but ok, it often depends on the staff you meet first, Less experienced or junior staff always say no and that happened to me as well, but I was advised by a friend to contact a more friendly manager. I had to put a fairly large deposit ( I think it was between 30 - 40%) , and the maximum term they would give me as non Thai was seven years. 

 

I had been using the bank for a few years before and had a good relationship with them. Accordingly getting a credit card from them was not that hard either. Thailand has a national credit bureaux and once you get a loan once and make payments it becomes easier. 

 

Since them I have applied and got credit cards from the same bank Central department and also approved for a loan from Toyota. 

 

Once you are in the system it becomes easier, like everywhere else. The problem is getting there in the first place, 

The 7 years is not because you are not Thai. My mortgage was for longer.

Its to do with your age. I assume you were 58 when applying.

[TheAceFace]

Considering the interest rates here compared to UK you would be better borrowing there, I see even personal loans are only 4.9%. My experience of mortgages here is that there needs to be an income in Thailand plus tax records in Thailand either by a Thai or their foreign spouse. Also if you are registering in kids name you will not be able to have a Thai based loan on the property.

Tax records in Thailand - not required.

We have arranged mortgages for clients through SCB and Krung Thai, each time payment of tax by either party has been required, if not available the loan has been refused. This is my experience, lending criteria does not seem to have national consistency. The OP should start with his local banks.

Guess we were lucky with SCB....No mention of tax payments, only money coming into my Thai bank each month (which was not an SCB account). Got a great deal and 25yr mortgage.

[worldtraveller]

I have had a mortgage from Krungsri Bank it took a few weeks to sort out but ok, it often depends on the staff you meet first, Less experienced or junior staff always say no and that happened to me as well, but I was advised by a friend to contact a more friendly manager. I had to put a fairly large deposit ( I think it was between 30 - 40%) , and the maximum term they would give me as non Thai was seven years.

I had been using the bank for a few years before and had a good relationship with them. Accordingly getting a credit card from them was not that hard either. Thailand has a national credit bureaux and once you get a loan once and make payments it becomes easier.

Since them I have applied and got credit cards from the same bank Central department and also approved for a loan from Toyota.

Once you are in the system it becomes easier, like everywhere else. The problem is getting there in the first place,

The 7 years is not because you are not Thai. My mortgage was for longer.

Its to do with your age. I assume you were 58 when applying.

I was no where near 58 when I applied for the loan, I was told it wax Bank policy at the time.

[Soutpeel]

Mortgage on a condo would be possible, although on a house, without a Thai partner may be tricky, unless you go the company route. Try SCB I had success with them on getting a mortgage for 80% of the new house value. I was working away at the time but the money was coming into Thailand each month, I also did this without a work permit or marriage visa. Just the tourist visa and 6 month's bank statements from me and my wife did the trick........if you know somebody who works in a bank, that could also help.

I was never asked for a work or income history in Thailand.

You had a wife, he doesn't. Thai wife can get a loan using spouse income.

Thai children can't have debt, so who will he get to own the land?

True I have a wife, hence why I mention the condo route or through a company. The Thai wife does not get the loan (it is in both our names and I am the guarantor), Likewise with any names on the title deed, they include myself, wife and children.

There are means and ways to do most things here.

Although the result is the same just a couple of technical comments for clarity, as I am doing the same thing as you with SCB on a 15 mortgage. Your name is not on the loan, if this is a landed property your talking about, this would be technically illegal, the loan is solely in your wife's name, you signing as a guarantor has no legal standing as regards the property except in the case of your " wife" failing to keep up with the payment, then you as the guarantor will be made to pay the financial short fall....granting a mortgage in Thailand and note I say mortgage, not personal loan, on a landed property in Thailand can only be in a Thai nationals name, rational being how can a bank give some one a loan for something that person cannot legally own....ie the land

As regards title deed, I don't think your names are on the deed, the property is not yours yet, it's still the banks, further don't believe you can put children on a title deed for a property which is still under a mortgage

[Soutpeel]

I have had a mortgage from Krungsri Bank it took a few weeks to sort out but ok, it often depends on the staff you meet first, Less experienced or junior staff always say no and that happened to me as well, but I was advised by a friend to contact a more friendly manager. I had to put a fairly large deposit ( I think it was between 30 - 40%) , and the maximum term they would give me as non Thai was seven years.

I had been using the bank for a few years before and had a good relationship with them. Accordingly getting a credit card from them was not that hard either. Thailand has a national credit bureaux and once you get a loan once and make payments it becomes easier.

Since them I have applied and got credit cards from the same bank Central department and also approved for a loan from Toyota.

Once you are in the system it becomes easier, like everywhere else. The problem is getting there in the first place,

The 7 years is not because you are not Thai. My mortgage was for longer.

Its to do with your age. I assume you were 58 when applying.

I was no where near 58 when I applied for the loan, I was told it wax Bank policy at the time.

Are sure it's a mortgage you have and not a personal loan ? Although your still getting money from a bank it at may not be a mortgage but a personal loan hence the shorter term and bigger amount you have to put up

[worldtraveller]

I have had a mortgage from Krungsri Bank it took a few weeks to sort out but ok, it often depends on the staff you meet first, Less experienced or junior staff always say no and that happened to me as well, but I was advised by a friend to contact a more friendly manager. I had to put a fairly large deposit ( I think it was between 30 - 40%) , and the maximum term they would give me as non Thai was seven years.

I had been using the bank for a few years before and had a good relationship with them. Accordingly getting a credit card from them was not that hard either. Thailand has a national credit bureaux and once you get a loan once and make payments it becomes easier.

Since them I have applied and got credit cards from the same bank Central department and also approved for a loan from Toyota.

Once you are in the system it becomes easier, like everywhere else. The problem is getting there in the first place,

The 7 years is not because you are not Thai. My mortgage was for longer.

Its to do with your age. I assume you were 58 when applying.

I was no where near 58 when I applied for the loan, I was told it wax Bank policy at the time.

Are sure it's a mortgage you have and not a personal loan ? Although your still getting money from a bank it at may not be a mortgage but a personal loan hence the shorter term and bigger amount you have to put up

It was a mortgage, I had to pay the mortgage tax as well, it was a condo not a house, and in my name, i guess the maximum term was 7years because I was not Thai.

[Soutpeel]

I have had a mortgage from Krungsri Bank it took a few weeks to sort out but ok, it often depends on the staff you meet first, Less experienced or junior staff always say no and that happened to me as well, but I was advised by a friend to contact a more friendly manager. I had to put a fairly large deposit ( I think it was between 30 - 40%) , and the maximum term they would give me as non Thai was seven years.

I had been using the bank for a few years before and had a good relationship with them. Accordingly getting a credit card from them was not that hard either. Thailand has a national credit bureaux and once you get a loan once and make payments it becomes easier.

Since them I have applied and got credit cards from the same bank Central department and also approved for a loan from Toyota.

Once you are in the system it becomes easier, like everywhere else. The problem is getting there in the first place,

The 7 years is not because you are not Thai. My mortgage was for longer.

Its to do with your age. I assume you were 58 when applying.

I was no where near 58 when I applied for the loan, I was told it wax Bank policy at the time.

Are sure it's a mortgage you have and not a personal loan ? Although your still getting money from a bank it at may not be a mortgage but a personal loan hence the shorter term and bigger amount you have to put up

It was a mortgage, I had to pay the mortgage tax as well, it was a condo not a house, and in my name, i guess the maximum term was 7years because I was not Thai.

Ah ok...the condo thing makes sense now

[TheAceFace]

Mortgage on a condo would be possible, although on a house, without a Thai partner may be tricky, unless you go the company route. Try SCB I had success with them on getting a mortgage for 80% of the new house value. I was working away at the time but the money was coming into Thailand each month, I also did this without a work permit or marriage visa. Just the tourist visa and 6 month's bank statements from me and my wife did the trick........if you know somebody who works in a bank, that could also help.

I was never asked for a work or income history in Thailand.

You had a wife, he doesn't. Thai wife can get a loan using spouse income.

Thai children can't have debt, so who will he get to own the land?

True I have a wife, hence why I mention the condo route or through a company. The Thai wife does not get the loan (it is in both our names and I am the guarantor), Likewise with any names on the title deed, they include myself, wife and children.

There are means and ways to do most things here.

Although the result is the same just a couple of technical comments for clarity, as I am doing the same thing as you with SCB on a 15 mortgage. Your name is not on the loan, if this is a landed property your talking about, this would be technically illegal, the loan is solely in your wife's name, you signing as a guarantor has no legal standing as regards the property except in the case of your " wife" failing to keep up with the payment, then you as the guarantor will be made to pay the financial short fall....granting a mortgage in Thailand and note I say mortgage, not personal loan, on a landed property in Thailand can only be in a Thai nationals name, rational being how can a bank give some one a loan for something that person cannot legally own....ie the land

As regards title deed, I don't think your names are on the deed, the property is not yours yet, it's still the banks, further don't believe you can put children on a title deed for a property which is still under a mortgage

SCB have been good thus far......the mortgage we got was 25yrs. Not sure if you know ( I did not until a couple of years into the payments) That there is a way to reduce payment by a couple of thousand a month, something along the lines of kids benefits or something. Don't know the full sp on it, but if you or the wife are interested I can get the full details of my missus when I finish this hitch. The SCB branch we used was in Pattaya.

[tingtong]

1. buy a condo. your name, clear deal. if that UK biz. provides you well, you should be able to save up money for one in no time

2. rent house. no headache, and your money is in your country. lot less likely to anything happen to you without your knowledge, and no need and hassle to move out from here is things change in the future.

3. there might be some private mortgage deal, sometimes seller accept/offer financing. shop around.

[Soutpeel]

Mortgage on a condo would be possible, although on a house, without a Thai partner may be tricky, unless you go the company route. Try SCB I had success with them on getting a mortgage for 80% of the new house value. I was working away at the time but the money was coming into Thailand each month, I also did this without a work permit or marriage visa. Just the tourist visa and 6 month's bank statements from me and my wife did the trick........if you know somebody who works in a bank, that could also help.

I was never asked for a work or income history in Thailand.

You had a wife, he doesn't. Thai wife can get a loan using spouse income.

Thai children can't have debt, so who will he get to own the land?

True I have a wife, hence why I mention the condo route or through a company. The Thai wife does not get the loan (it is in both our names and I am the guarantor), Likewise with any names on the title deed, they include myself, wife and children.

There are means and ways to do most things here.

Although the result is the same just a couple of technical comments for clarity, as I am doing the same thing as you with SCB on a 15 mortgage. Your name is not on the loan, if this is a landed property your talking about, this would be technically illegal, the loan is solely in your wife's name, you signing as a guarantor has no legal standing as regards the property except in the case of your " wife" failing to keep up with the payment, then you as the guarantor will be made to pay the financial short fall....granting a mortgage in Thailand and note I say mortgage, not personal loan, on a landed property in Thailand can only be in a Thai nationals name, rational being how can a bank give some one a loan for something that person cannot legally own....ie the land

As regards title deed, I don't think your names are on the deed, the property is not yours yet, it's still the banks, further don't believe you can put children on a title deed for a property which is still under a mortgage

SCB have been good thus far......the mortgage we got was 25yrs. Not sure if you know ( I did not until a couple of years into the payments) That there is a way to reduce payment by a couple of thousand a month, something along the lines of kids benefits or something. Don't know the full sp on it, but if you or the wife are interested I can get the full details of my missus when I finish this hitch. The SCB branch we used was in Pattaya.

Agreed SCB are good, can't complain, on the discount, not a biggie as I am intending on paying off the balance next year any way, there is only about 800k left on the loan anyway, the upside for me with this loan has been, SCB are prepared to give me loan directly in my own name on a condo f I want it, no down payment as such on a term of 10 years I think it was

[mortenaa]

I have a mortgage on a condo through UOB Thai / Singapore in USD. Pretty straight forward process. I don't think you needed a work permit in Thailand, even though I have one..

[ArranP]

I'm about to go around the branches to see who might give me a mortgage.

What Phuket branch & bank have people had a good experience with obtaining a mortgage ?

Thanks for your input.

Edited December 7, 2013 by ArranP