How much one borrow on 30k PCM income

[davidst01]

Hi there

My thai friend is a medical professional earning 30k a month and last night asked me how much I think a bank would lend to buy a house/ land.

In western countries banks usually lend around 30% of gross monthly income. What is the go here in LOS? My friend has 5% downpayment saved to put toward a property.

If you have knowledge on this subject please assist.

thanks

[SheungWan]

A bank will likely want to know net income minus all other outgoings before giving a figure.

[EvilDrSomkid]

OP, it really depends on the bank. He should go to Krung Thai. When my wife made 30k a month, they lent her 2.7mil. She has been a long time customer of Kbank. They flat out refused her when she asked.

The funny thing about mortgages in Thailand is that banks prefer to see (large) cashflows on your account. A staff contract and steady salary counts for less.

[how241]

A bank will likely want to know net income minus all other outgoings before giving a figure.

+1....Banks vary greatly in Thailand...shop around.

[thepool]

As a Thai person your friend should just ask at his/her bank !

[mortenaa]

OP, it really depends on the bank. He should go to Krung Thai. When my wife made 30k a month, they lent her 2.7mil. She has been a long time customer of Kbank. They flat out refused her when she asked.

The funny thing about mortgages in Thailand is that banks prefer to see (large) cashflows on your account. A staff contract and steady salary counts for less.

Large cashflows on your account doesn't help jack shit, unless you are employed somewhere. Employment is the only sure way to ensure a credit card and a mortgage

[davidst01]

As a Thai person your friend should just ask at his/her bank !

yet ANOTHER daft comment from the infamous member. It is my understanding that you have far too much time on your hands- most of which is spent on this url

[ggt]

Your Thai friend should ask a mortgage lending company...they will be able to tell him what he needs to know...would you ask a Thai...how much you could borrow against your wages...in your own country?

[Jonmarleesco]

30% of gross monthly income? Western countries usually work on annual income and, for a mortgage, will lend somewhere around 3 times that. Here, ideally ask around the banks; his own would be a good start.

[Doc46]

As a Thai person your friend should just ask at his/her bank !

yet ANOTHER daft comment from the infamous member. It is my understanding that you have far too much time on your hands- most of which is spent on this url

I think that you are the daft one,the comment IS the correct answer,,,,ASK YOUR OWN BANK,,,, and if you don't like the answer go to a other Bank

[wayned]

GHB - Government Housing Bank - seems to have a very liberal lending policy for Thais to buy homes. They also have a very large loan restructuring department for those that have gotten in over their head.

[PattayaPhom]

Land size counts for a lot also, Find the property he wishes to purchase then visit numerous banks for special dealls. Some have fixed for 2 years etc, dont forget the rate here is around 7%. on only 30K a month, he should be more worried what the repayments are rather than the max amount he can borrow. Mortgages also require life insurance paid in advance for the term of the loan, that could be 70K plus another 5K for valuation, if he only has a 5% deposit, thats a large chunk needed just for that. how old is he, will he be getting married, what about kids.....these scenarios need tobe addressed for future payment plans.

[davidst01]

As a Thai person your friend should just ask at his/her bank !

yet ANOTHER daft comment from the infamous member. It is my understanding that you have far too much time on your hands- most of which is spent on this url

I think that you are the daft one,the comment IS the correct answer,,,,ASK YOUR OWN BANK,,,, and if you don't like the answer go to a other Bank

stay calm mr pool

[robblok]

As a Thai person your friend should just ask at his/her bank !

yet ANOTHER daft comment from the infamous member. It is my understanding that you have far too much time on your hands- most of which is spent on this url

I think that you are the daft one,the comment IS the correct answer,,,,ASK YOUR OWN BANK,,,, and if you don't like the answer go to a other Bank

Your absolutely right nobody but the bank can tell you this and even then there is a large variation between banks.

[robblok]

As a Thai person your friend should just ask at his/her bank !

yet ANOTHER daft comment from the infamous member. It is my understanding that you have far too much time on your hands- most of which is spent on this url

I think that you are the daft one,the comment IS the correct answer,,,,ASK YOUR OWN BANK,,,, and if you don't like the answer go to a other Bank

stay calm mr pool

Are you now going to call me mr pool too ?

[fletchsmile]

The answer really is to check with the various banks. Different banks have different policies.

To be a bit more constructive though here are some other points to bear in mind. They are generalisations:

- The government run banks may be more lenient. eg Omsin/GSB is often geared to help socially rather than just purely commercially.

- If you only have 5% deposit it's unlikely you will get above THB 10mio, as there are BOT regulations that restrict advances on above and below THB 10mio thresholds.

- You might want to google a few banks and look at their websites for normal as well as promotions, as the two may differ.

- Some often also offer calculation tools, eg

https://www.sc.com/th/en/borrow/mortgages-tools-calculator.html

will give your friend an idea of what is possible with Stan Chart. You can play around with the slider entering salary, age, level of current debt, term etc. This is only an estimate to give an idea and may be useful to you. So take it with a pinch of salt. Other banks do similar. It will also bring home that there are many more factors than just level of income.

While it varies bank by bank, for the 9 main commerical banks I wouldn't expect the levels to be massively different, so the calculator above is a reasonable starting place. But for outside the 9 main commercial ones, eg GSB it may differ significantly as from time to time there are special programmes often executed to facilitate govt policies.

Cheers

Fletch

Edited April 26, 2014 by fletchsmile

[robblok]

The answer really is to check with the various banks. Different banks have different policies.

To be a bit more constructive though here are some other points to bear in mind. They are generalisations:

- The government run banks may be more lenient. eg Omsin/GSB is often geared to help socially rather than just purely commercially.

- If you only have 5% deposit it's unlikely you will get above THB 10mio, as there are BOT regulations that restrict advances on above and below THB 10mio thresholds.

- You might want to google a few banks and look at their websites for normal as well as promotions, as the two may differ.

- Some often also offer calculation tools, eg

https://www.sc.com/th/en/borrow/mortgages-tools-calculator.html

will give your friend an idea of what is possible with Stan Chart. You can play around with the slider entering salary, age, level of current debt, term etc. This is only an estimate to give an idea and may be useful to you. So take it with a pinch of salt. Other banks do similar. It will also bring home that there are many more factors than just level of income.

While it varies bank by bank, for the 9 main commerical banks I wouldn't expect the levels to be massively different, so the calculator above is a reasonable starting place. But for outside the 9 main commercial ones, eg GSB it may differ significantly as from time to time there are special programmes often executed to facilitate govt policies.

Cheers

Fletch

Nice calculator, i must say they do give out a lot of money. If you only earn 20k a month and no debts you can get 2,5 million at 25 years.

That is over 10 times the anual salary, where i come from you would be happy to get 4 times (not sure if this tool is for gross or net salary)

[Farma]

We found if a particular bank branch doesn't have loans out in a tambon or umphur they will be more likely to lend if you're requesting a loan for one of those areas. A branch manager was telling us they have amounts allocated for each area. It might explain why it can be hit and miss getting loans at times.

davidst01 if your friend is only after a million or 2 they might get a better deal from their medical credit union. It's something else for them to look at.

Edited April 26, 2014 by Farma

[fletchsmile]

The answer really is to check with the various banks. Different banks have different policies.

To be a bit more constructive though here are some other points to bear in mind. They are generalisations:

- The government run banks may be more lenient. eg Omsin/GSB is often geared to help socially rather than just purely commercially.

- If you only have 5% deposit it's unlikely you will get above THB 10mio, as there are BOT regulations that restrict advances on above and below THB 10mio thresholds.

- You might want to google a few banks and look at their websites for normal as well as promotions, as the two may differ.

- Some often also offer calculation tools, eg

https://www.sc.com/th/en/borrow/mortgages-tools-calculator.html

will give your friend an idea of what is possible with Stan Chart. You can play around with the slider entering salary, age, level of current debt, term etc. This is only an estimate to give an idea and may be useful to you. So take it with a pinch of salt. Other banks do similar. It will also bring home that there are many more factors than just level of income.

While it varies bank by bank, for the 9 main commerical banks I wouldn't expect the levels to be massively different, so the calculator above is a reasonable starting place. But for outside the 9 main commercial ones, eg GSB it may differ significantly as from time to time there are special programmes often executed to facilitate govt policies.

Cheers

Fletch

Nice calculator, i must say they do give out a lot of money. If you only earn 20k a month and no debts you can get 2,5 million at 25 years.

That is over 10 times the anual salary, where i come from you would be happy to get 4 times (not sure if this tool is for gross or net salary)

Yes struck me as high too which is why I'd say take with a pinch of salt. On the other hand, for every 12k of debt (1k a month) they reduce the borrowable amount by 120k a year (10k a month repayment amount too).

In places like the UK it is more common to work on multiplies of annual salary. In Thailand the debt servicing ratio (DSR) is a key factor, with more of a focus on ability to service the loan.

I know that the 70% is a DSR that Thai banks don't like to go above. i.e if earning 30k they won't like repayments above 21k for a salaried employee. That's a max amount and they could and often do restrict further on other criteria.

BTW If you click on the monthly payments tab, it's quite neat in the way it shows the monthly payment for the amount of debt. Plus the 70% DSR cap is there or thereabouts.

The big caveat there those is the interest rate assumed is 5%. Not necessarily something to bank on, and a bit disappointing that particular calculator won't let you vary it. I think that's on the low side. When the actual rate at the time is 6% or 7% the multiple will soon be reduced.

Another factor is age. It's common to restrict to 60 minus age for the tenor. This is because it's difficult to insure the person. i.e 50 year old guy gets a max of 10 years. A 25 year old can usually do up to 30 years tenor so the monthly repayments are lower. Hence for the old guy, the multiple comes down significantly again as the tenor is shorter

Cheers

Fletch

Edited April 26, 2014 by fletchsmile

[Ulic]

Lending you 30% of gross monthly income (9,000 baht) will not get you much. In Canada the banks will lend you

300% of gross annual income. So around 1.1 million baht on 30k a month.