Loan to buy a house for my Thai child? Kasikorn Bank said "sorry only for condo mister"

[Annonymous]

Hello,

I'm not sure where to post this but I'd like to buy a house either to my thai wife or to my thai child.

Question 1: how can I get a loan for a house? Kasikorn will only provide a loan for a condo. My wife could get a loan.. if she was working... I offered to be her guarantor as I have stable income, but no go.

Question 2: can I buy a land/house for my Thai child? He's only a baby so the real question is: Can a minor own a land in Thailand?

Thank you for your advice!

[Annonymous]

Sorry if this is not the good section, perhaps it would be more appropriate in the "General" forum? Feel free to move it, thanks!

Edited September 30, 2013 by Annonymous

[SidJames]

As far as I know a child has no real legal standing until they are 7 & even then someone else (such as their mother) would have complete control over their estate & have poor of attorney

You really need qualified legal advice on this one fella

SJ

[Annonymous]

As far as I know a child has no real legal standing until they are 7 & even then someone else (such as their mother) would have complete control over their estate & have poor of attorney

You really need qualified legal advice on this one fella

SJ

Thanks a lot for the info!

It's fine, I can still buy a house to my wife then, if I can get a loan to buy a house of course!

I really don't understand why Kasikorn Bank would provide me with a loan for a condo with no problem, but won't offer it for a house... that's discrimination, and racism against houses!! lol

[chuckd]

I bought a house for my daughter and put it in her name when she was 9 years old.

I was divorced from her mother but had full custody of her so I signed the land title and papers at the land office as her legal guardian.

I was told the property would become hers when she reached her 20th birthday. Until then I could not dispose of the property without the consent of a juvenile court judge and could only use any funds from the sale for her benefit.

I did pay cash for it and did not require financing. If it is a new property, talk to the contractor or builder and see if they have some way to work out a finance plan you can live with.

She is now nearing her 21st birthday and lives happily in HER home.

Edited September 30, 2013 by chuckd

[Spalpeen]

Look at it from the bank's point of view. The house would be the property of your wife or child, neither of whom presumably have the means to keep up the monthly repayments. You're asking the bank to lend money to another person on the basis of your income. The bank has to ask itself the question whether you are going to disappear off to farang land after a while and leave them with another non performing loan. Since a condo would be your property they have more faith that you'll stick around and keep up the payments.

I happen to know that the number of repo'd properties that Thai banks have on their books is a factor in their reluctance to lend money.

[dsfbrit]

The best place for this would be in the 'Real Estate, housing, house and land ownership' forum. That is where I always go to discuss this sort of thing and get some good advice.

http://www.thaivisa.com/forum/forum/59-real-estate-housing-house-and-land-ownership/

[Annonymous]

Look at it from the bank's point of view. The house would be the property of your wife or child, neither of whom presumably have the means to keep up the monthly repayments. You're asking the bank to lend money to another person on the basis of your income. The bank has to ask itself the question whether you are going to disappear off to farang land after a while and leave them with another non performing loan. Since a condo would be your property they have more faith that you'll stick around and keep up the payments.

I happen to know that the number of repo'd properties that Thai banks have on their books is a factor in their reluctance to lend money.

I understand. But can't the bank just resale the house in case of missing payments?

Any workaround for me? I don't intend to "disappear off to farang land" ^^

The woman who I talked to at the Kasikorn branch in jomtien told me that "TMB" bank might provide me with a loan for a house, anyone knows if it's true?

[Annonymous]

The best place for this would be in the 'Real Estate, housing, house and land ownership' forum. That is where I always go to discuss this sort of thing and get some good advice.

http://www.thaivisa.com/forum/forum/59-real-estate-housing-house-and-land-ownership/

Thanks, went there, did that, got no answer. Came here, got answers.. haha!

[Neeranam]

IF you work in Thailand with work permit, reasonable salary, yellow house registration etc, most banks will give you at least 50%.

Usually, if you want more you'll be hit with a hefty insurance which is really just tea money.

It also depends on how long you've been married.

If you are in Pattaya it might be different for obvious reasons.

Minors can't own land until they are 20.

Edited September 30, 2013 by Neeranam

[Annonymous]

IF you work in Thailand with work permit, reasonable salary, yellow house registration etc, most banks will give you at least 50%.

Usually, if you want more you'll be hit with a hefty insurance which is really just tea money.

It also depends on how long you've been married.

If you are in Pattaya it might be different for obvious reasons.

Minors can't own land until they are 20.

Thanks!

I don't work in Thailand, I'm on a Non-O visa (marriage).

Stable income from business aboard.

Married for one year.

Looking for 90% financing.

TMB offers 90%: https://www.tmbbank.com/personal/homeloan/tmb-homeloan-en.php

Kasikorn only 80%: http://www.kasikornbank.com/EN/Personal/Loans/KHomeLoan/Pages/KHomeLoanKasikorn.aspx

[dsfbrit]

You have a reply there now - the mods wont like you posting in two forums at once - you will get a telling off for that...good luck anyway

Edited September 30, 2013 by dsfbrit

[jbrain]

The best place for this would be in the 'Real Estate, housing, house and land ownership' forum. That is where I always go to discuss this sort of thing and get some good advice.

http://www.thaivisa.com/forum/forum/59-real-estate-housing-house-and-land-ownership/

Thanks, went there, did that, got no answer. Came here, got answers.. haha!

Sure you got answers, you could have posted in the I drink too much forum as well

[KittenKong]

I don't work in Thailand, I'm on a Non-O visa (marriage).

Stable income from business aboard.

Looking for 90% financing.

Hold on.

You have a short visa, no Thai income, no security and yet you want a Thai bank to lend you 90% of the value of a house in Thailand that you cant legally own?

And you wonder why they tell you to #!%$ off?

Personally if I was a bank I wouldn't lend you more than 50% even for a farang-name condo purchase, but then I'm the sort of prudent person who doesn't cause global financial meltdowns, so what do I know?

[Annonymous]

I don't work in Thailand, I'm on a Non-O visa (marriage).

Stable income from business aboard.

Looking for 90% financing.

Hold on.

You have a short visa, no Thai income, no security and yet you want a Thai bank to lend you 90% of the value of a house in Thailand that you cant legally own?

And you wonder why they tell you to #!%$ off?

Personally if I was a bank I wouldn't lend you more than 50% even for a farang-name condo purchase, but then I'm the sort of prudent person who doesn't cause global financial meltdowns, so what do I know?

Pardon? I have a Non-O visa which allows me to stay ad vitam eternal in Thailand without ever leaving the country by extending it on a yearly basis, and you call this a "short visa"? Are there any longer visas than mine and if so what are they???

Second, no Thai income? I withdraw to my Thai bank account near 100 000 baht each month for almost 4 years and you call this "no Thai income, no security"??? What exactly do you need to consider it a "Thai income", that it must come from a local company? What's the difference anyway? It's still money coming in regularly. What do you mean by "no security"?

Lastly, "if you were a bank", thank god you're not! Kasikorn already offered me to finance 80% of any condo under 6 million baht that I would be interested in, so the problem doesn't come from my profile but from my preference of a house rather than a condo. Also, you should know that money is created from loans, meaning that the bank doesn't see its capital impacted by 1 baht when providing a loan of any amount. When you "refund" the loan you actually increase the bank's capital. This is a complex (and sad) financial reality that I'm sure you've heard of a few years ago with the popular "Money as dept" documentary.

Cheers

Edited September 30, 2013 by Annonymous

[Annonymous]

If anyone still wanna advise on any particular bank or loan offer that would let us buy a house it'll be much appreciated. Thanks!

[Pattaya Pat]

I don't work in Thailand, I'm on a Non-O visa (marriage).

Stable income from business aboard.

Looking for 90% financing.

Hold on.

You have a short visa, no Thai income, no security and yet you want a Thai bank to lend you 90% of the value of a house in Thailand that you cant legally own?

And you wonder why they tell you to #!%$ off?

Personally if I was a bank I wouldn't lend you more than 50% even for a farang-name condo purchase, but then I'm the sort of prudent person who doesn't cause global financial meltdowns, so what do I know?

Pardon? I have a Non-O visa which allows me to stay ad vitam eternal in Thailand without ever leaving the country by extending it on a yearly basis, and you call this a "short visa"? Are there any longer visas than mine and if so what are they???

Second, no Thai income? I withdraw to my Thai bank account near 100 000 baht each month for almost 4 years and you call this "no Thai income, no security"??? What exactly do you need to consider it a "Thai income", that it must come from a local company? What's the difference anyway? It's still money coming in regularly. What do you mean by "no security"?

Lastly, "if you were a bank", thank god you're not! Kasikorn already offered me to finance 80% of any condo under 6 million baht that I would be interested in, so the problem doesn't come from my profile but from my preference of a house rather than a condo. Also, you should know that money is created from loans, meaning that the bank doesn't see its capital impacted by 1 baht when providing a loan of any amount. When you "refund" the loan you actually increase the bank's capital. This is a complex (and sad) financial reality that I'm sure you've heard of a few years ago with the popular "Money as dept" documentary.

Cheers

There are plenty of houlier than thou know it all posters like kitten kong around here. i'm just surpised it took so long for one to pipe up..

[Annonymous]

I don't work in Thailand, I'm on a Non-O visa (marriage).

Stable income from business aboard.

Looking for 90% financing.

Hold on.

You have a short visa, no Thai income, no security and yet you want a Thai bank to lend you 90% of the value of a house in Thailand that you cant legally own?

And you wonder why they tell you to #!%$ off?

Personally if I was a bank I wouldn't lend you more than 50% even for a farang-name condo purchase, but then I'm the sort of prudent person who doesn't cause global financial meltdowns, so what do I know?

Pardon? I have a Non-O visa which allows me to stay ad vitam eternal in Thailand without ever leaving the country by extending it on a yearly basis, and you call this a "short visa"? Are there any longer visas than mine and if so what are they???

Second, no Thai income? I withdraw to my Thai bank account near 100 000 baht each month for almost 4 years and you call this "no Thai income, no security"??? What exactly do you need to consider it a "Thai income", that it must come from a local company? What's the difference anyway? It's still money coming in regularly. What do you mean by "no security"?

Lastly, "if you were a bank", thank god you're not! Kasikorn already offered me to finance 80% of any condo under 6 million baht that I would be interested in, so the problem doesn't come from my profile but from my preference of a house rather than a condo. Also, you should know that money is created from loans, meaning that the bank doesn't see its capital impacted by 1 baht when providing a loan of any amount. When you "refund" the loan you actually increase the bank's capital. This is a complex (and sad) financial reality that I'm sure you've heard of a few years ago with the popular "Money as dept" documentary.

Cheers

There are plenty of houlier than thou know it all posters like kitten kong around here. i'm just surpised it took so long for one to pipe up..

what are you saying? don't understand

[wooloomooloo]

Could the reason be that a Thai bank will lend you money for a condo and not a house be because you don't own land with a condo.

On the other hand, a house would sit on land that you are unable to own and the rug could be pulled from under your feet at a moments notice and obviously a huge risk to a lender.

[Annonymous]

Could the reason be that a Thai bank will lend you money for a condo and not a house be because you don't own land with a condo.

On the other hand, a house would sit on land that you are unable to own and the rug could be pulled from under your feet at a moments notice and obviously a huge risk to a lender.

Well I suggested them that the loan would be in my wife's name, and that I would be her sponsor, but that didn't work out either

In this situation I provide the money to my wife, who gives it to the bank, and in case of payment failure on either side the bank would have full power to take over the land and house.

[Annonymous]

There must be a special deal for married couples foreigner/thai, I can't believe they're not interested by this market!

Condos suck!

Edited September 30, 2013 by Annonymous

[wooloomooloo]

Well I suggested them that the loan would be in my wife's name, and that I would be her sponsor, but that didn't work out either

Don't take it so personally, Annonymous. I know someone in the same position and has the income but unable to secure a loan in his wife's name.

The bank is only interested in his wife's business and they haven't deemed that sufficiently profitable to rubberstamp a mortgage application.

Bank's are in the business of risk and I myself would be hard-pressed to loan money to a foreigner on a temporary visa.

[mataleo]

I know guy he put house in baby name as his will then died and now mother tries sell it cash on it went to court but still cant do it have to wait till kid be 21 and agrees to sell it

mataleo

[JSixpack]

There must be a special deal for married couples foreigner/thai, I can't believe they're not interested by this market!

Condos suck!

Condos are wonderful.

[Rimmer]

Moved to Real Estate Forum

[KittenKong]

Pardon? I have a Non-O visa which allows me to stay ad vitam eternal in Thailand without ever leaving the country by extending it on a yearly basis, and you call this a "short visa"? Are there any longer visas than mine and if so what are they???

Your visa is one year maximum. I call this short. If you had permanent residency I would call it long. Either way you do not have anything approaching right of abode in Thailand, and you probably never will.

So for all the bank knows your extension could be refused at any time and you could be deported immediately, with no possibility of appeal. To my eyes this does not make you a good risk.

Second, no Thai income? I withdraw to my Thai bank account near 100 000 baht each month for almost 4 years and you call this "no Thai income, no security"??? What exactly do you need to consider it a "Thai income", that it must come from a local company? What's the difference anyway? It's still money coming in regularly. What do you mean by "no security"?

Yes, Thai income is income generated in Thailand as a result of a job with a contract that can be verified. This is the sort of thing that shows a local bank that you are probably a good risk. Your ATM withdrawals are meaningless; they could be the last of your life savings. If you have verifiable overseas earnings then maybe you should look to a bank in the country where the earnings arise to make you a loan against them.

What does no security mean? It means you have no security to offer the bank apart from the title to a house that you cant legally own. Doesnt sound very attractive to me.

Lastly, "if you were a bank", thank god you're not! Kasikorn already offered me to finance 80% of any condo under 6 million baht that I would be interested in, so the problem doesn't come from my profile but from my preference of a house rather than a condo. Also, you should know that money is created from loans, meaning that the bank doesn't see its capital impacted by 1 baht when providing a loan of any amount.

If banks were run as they used to be a few decades ago there never would have been a global financial crisis 5 years ago. This crisis was caused entirely by high percentage loans being made to people/companies who had no collateral and little ability to pay anything back. Sensible lending would have avoided this and indeed the banks that weathered the storm well were the ones that didnt get involved in sub-prime (aka crap) loans and debt repackaging. The ones that did get involved with this have mostly gone to the wall.

Lending money to someone in your situation to purchase a house here would be nothing short of insanity.

[KittenKong]

There are plenty of houlier than thou know it all posters like kitten kong around here. i'm just surpised it took so long for one to pipe up..

Ho ho ho.

Maybe the people here who think I'm an idiot will lend this guy the money he wants? Assuming they have anything left from previous loans they made to tattooed ex-SAS/CIA drinking companions to buy a Pattaya bar, of course.

[Mario2008]

A Thai child can as any other Thai person own land and his ownership will be under the protection of the court. meaning that the legal representatives of the child (the parents) must obtain prior court approval for things as sale of the property. The court will make sure that everything done is in the intrest of the child. The property will be the property of the child and you can not use him as a proxy.

What you cannot do is give a child property with a loan/morage attached to that property. You must give the land debt free. So if you have some other property, you can take out a loan against that to pay for the property you want to give to your child but you can not secure a loan against the property you want to gve the child.

[Neeranam]

I don't work in Thailand, I'm on a Non-O visa (marriage).

Stable income from business aboard.

Looking for 90% financing.

Hold on.

You have a short visa, no Thai income, no security and yet you want a Thai bank to lend you 90% of the value of a house in Thailand that you cant legally own?

And you wonder why they tell you to #!%$ off?

Personally if I was a bank I wouldn't lend you more than 50% even for a farang-name condo purchase, but then I'm the sort of prudent person who doesn't cause global financial meltdowns, so what do I know?

Pardon? I have a Non-O visa which allows me to stay ad vitam eternal in Thailand without ever leaving the country by extending it on a yearly basis, and you call this a "short visa"? Are there any longer visas than mine and if so what are they???

Second, no Thai income? I withdraw to my Thai bank account near 100 000 baht each month for almost 4 years and you call this "no Thai income, no security"??? What exactly do you need to consider it a "Thai income", that it must come from a local company? What's the difference anyway? It's still money coming in regularly. What do you mean by "no security"?

Lastly, "if you were a bank", thank god you're not! Kasikorn already offered me to finance 80% of any condo under 6 million baht that I would be interested in, so the problem doesn't come from my profile but from my preference of a house rather than a condo. Also, you should know that money is created from loans, meaning that the bank doesn't see its capital impacted by 1 baht when providing a loan of any amount. When you "refund" the loan you actually increase the bank's capital. This is a complex (and sad) financial reality that I'm sure you've heard of a few years ago with the popular "Money as dept" documentary.

Cheers

Thai banks can be funny with foreigners. I went to a Bangkok Bank once for a credit card. The said I need a work permit. I went back showing my work permit and they said I needed to have had an account for 5 years. I'd been with them for 12 years. Eventually she admitted that she just didn't want to give it to me as there was a German who stole 240,000 baht from them !

A mate of mine built a house for 4 million baht. He still had 2 million in his bank account. He went to the bank asking for a home improvement loan of 500,000 baht. They turned him down as they just couldn't understand why he wanted it. He immediately took out his 2 million and went to another bank.

I was offered a 90% loan from Krung Thai, the most racist bank in the country when they totally discriminated against me in other matters. Why, because the builder was a vice - president of a nearby bank. Actually it worked out as 100% as the builder, as most do, lied about the price of the house to the bank.

I noticed someone say that the chanote name must be the same as the mortgage name - not true.

This is Thailand and there are ways around ALL obstacles. It might cost you some cash but don't give up trying to buy a house.

What many Thai people do is ...... actually I can't tell you as it's illegal.

But so is gambling and not wearing a crash helmet.

Other ways are for you to start putting your salary, or part of it into your wife's account every month. This is a wise thing to do for the future and I suuggest this to all married couples where the Thai wife doesn't work. Your wife can make certain transactions that the banks like to see. Your wife should buy a ledger book and start making entries for something.

Edited October 1, 2013 by Neeranam

[KittenKong]

If I was a bank I wouldnt consider the books of small companies as offering any sort of security. Much too easy to falsify.

If the company owned property etc then I would accept a lien on that as security against a personal loan made to the owner of the company.

Just call me old-fashioned.