New mortgage rulings for foreigners!

[ChenMatt]

Apparently this policy just kicked in this after the martial law. Not sure if banks are trying to capitalize here..

I am trying to loan 5 million baht from UOB and now they tell me that this new ruling for foreigner guarantors - I have to take up a 3 million endowment payable in 1 lump sum per year at 500K for 6 years. I can only get my money back after 10 years! If I had that amount of money I might as well put it into my repayment rather than taking up their endowment which pays me lesser than the bank loan interest rate!

Can anyone advise if there are other banks out there with less ridiculous policies in place?

Thank you!

[Gulfsailor]

It sounds a bit like the reports that came in from some European banks a while ago, where if one wanted to loan 100, the actual loan amount would be 110, with 10 immediately deposited back in a long term savings account. Had to do with keeping the loan/deposit ratio for the bank.

I would be interested to hear which Thai bank required this, and if it is just asked from foreigners.

[AnotherOneAmerican]

@OP

Your post is confusing.

Are you trying to borrow 5M? (you understand the difference between loan and borrow?)

Next

Each bank branch makes up it's own rules as they go. There are no new rules, they just don't want to give your wife the loan.

Try SCB, they will give a 90% loan and only rip you off for a 30 year life insurance paid fully upfront and costing about 5% of the loan amount.

The life insurance is in the name of the Thai national taking out the loan with the primary beneficiary being the bank.

Edited May 26, 2014 by AnotherOneAmerican

[ChenMatt]

im trying to borrow 5 million for mortgage. this applies for foreigners acting as guarantors for thai persons.

i just called bangkok bank, no such policy in place and will transfer to them..

[AnotherOneAmerican]

im trying to borrow 5 million for mortgage. this applies for foreigners acting as guarantors for thai persons. i just called bangkok bank, no such policy in place and will transfer to them..

BKB require a LOT of documentation of Thai person's income, and even then require a LARGE deposit, often 30-50% of purchase price. And they want to sell life insurance too.

SCB, don't care, they just want to sell life insurance.

Don't waste your time with BKB, straight to SCB will save you a lot of effort.

Often easier for a Thai/foreigner couple to buy a new house with the aid of the developer who will have contacts (aka regularly bribe manager) with a particular bank.

[TexasRanger]

Agreed. We are doing that with scb. 40% deposit.

Sent from my SM-T210R using Tapatalk

[Crossy]

+1 on SCB, very nice to work with.

A bit long winded in our case (we got a construction loan, construction was nearly finished when the cash finally came through).

[haveaniceday]

With SCB and BKB can you pay the loan out early and only pay interest on the remaining amount ?

I believe some other banks, if you pay the loan out early make you pay what the interest would have been on the original length of them loan.

[haveaniceday]

With SCB and BKB can you pay the loan out early and only pay interest on the remaining amount ?

I believe some other banks, if you pay the loan out early make you pay what the interest would have been on the original length of them loan.

[AnotherOneAmerican]

With SCB and BKB can you pay the loan out early and only pay interest on the remaining amount ?

I believe some other banks, if you pay the loan out early make you pay what the interest would have been on the original length of them loan.

With SCB you can pay any amount (over the minimum) any month.

You get a nice little statement showing, amount outstanding, interest paid, capital paid, interest rate with each monthly payment. Not to mention a card to hand the cashier with all your account details, to make payments easy at any branch each month.

Interest is currently 2% for year 1, 7% for the rest of the term.

Edited May 27, 2014 by AnotherOneAmerican

[grin]

I am the guarantor on my wife's mortgage from BBL (Bangkok Bank). They originally wanted to add 10% to the mortgage amount for life insurance but I was able to bargain them down quite a bit on that. We also had already paid over 50% of the house construction costs but had surprisingly little paperwork considering that I was on sabbatical from work at that time. One detail was that the mortgage could not go past the age of 65 of the guarantor. So if you were 55 at the time then you could only guarantee a 10 year mortgage. Another detail was that although the mortgage has an adjustable interest rate, the mortgage payments themselves are fixed. The varying rate could make the mortgage last shorter or longer than the original term given. We had teaser rates for the first 3 years, 0.9% 1.9%, and 2.9%. After that the rate was 0.5% less than BBL's MRI. Right now our rate is 6.25% so their MRI must be 6.75%. Coincidentally, if the mortgage had been paid off before 3 years then the interest for those 3 years would have been due.

Grin

[ChenMatt]

thanks for all the replies. i am trying to talk to scb now, but it seems that they may only loan out 50% but i am looking to get 80%. they also quoted me an interest rate of 8% since i am unsure whether my moo baan have a tie up with them anot.

problem also is since we are both overseas, the banks are not that happy about that, not to mention my income is fully derived overseas as well, which makes it complicated.

question: for the mrta do you guys buy 100% of the house value over the life of the loan? SCB told me i only had to buy up to 70% of the house value and over 20 years, i am eligible for a 30 years loan.

thing is, the insurance over 20 years and 30 years is more than doubled. 20 years (100% value) is at 200K, 30 years is at 500k.

any experts out there can shed some light how in the unfortunate event of a claim how they circumvent this cost?

i live in singapore and i have a term insurance for 450baht/mth equivalent covering me for 5 million in the event of death so this MRTA seems excessive in my opinion.

my mrta for my housse in singapore over 30 years for a 7.5million baht equivalent loan only amounts to 200k baht.

thailand insurance and interests rate are exceedingly high.

[AnotherOneAmerican]

thanks for all the replies. i am trying to talk to scb now, but it seems that they may only loan out 50% but i am looking to get 80%. they also quoted me an interest rate of 8% since i am unsure whether my moo baan have a tie up with them anot. problem also is since we are both overseas, the banks are not that happy about that, not to mention my income is fully derived overseas as well, which makes it complicated. question: for the mrta do you guys buy 100% of the house value over the life of the loan? SCB told me i only had to buy up to 70% of the house value and over 20 years, i am eligible for a 30 years loan. thing is, the insurance over 20 years and 30 years is more than doubled. 20 years (100% value) is at 200K, 30 years is at 500k. any experts out there can shed some light how in the unfortunate event of a claim how they circumvent this cost? i live in singapore and i have a term insurance for 450baht/mth equivalent covering me for 5 million in the event of death so this MRTA seems excessive in my opinion. my mrta for my housse in singapore over 30 years for a 7.5million baht equivalent loan only amounts to 200k baht. thailand insurance and interests rate are exceedingly high.

SCB wanted 20 years life insurance to cover a 30 year loan when I applied.

Which totalled about 5% of the full loan amount as an upfront extra.

Don't think of it as buying life insurance, think of it as a bribe for not looking at your application too carefully.

[ChenMatt]

is there any other bank that lends to foreigners (based overseas with overseas derived income)

what i learnt from bangkok bank and standard chartered is that they the foreigner must work in thai so is no go.

siam commercial still checking on requirements.

[Soutpeel]

I am trying to loan 5 million baht from UOB and now they tell me that this new ruling for foreigner guarantors

I don't believe this is a new ruling at all, believe this is UOB trying to stitch you up to take an endowment out with them.

One assumes you trying to get a loan on a condo ?.....if your trying to get a mortgage on a landed property in your own name through a Thai bank, you have no chance, due to the land ownership rules, the best your can do is sign a guarantor for a Thai national.

I have done this through SCB about 8 years ago for Mrs S...and they wanted my PP, WP, 12 months pay slips and a letter from the Thai company I worked for at the time, stating my job is a permanent position, not a short term contract etc...

The upside now is I can get a mortgage in my own name for a condo from SCB, although as yet I have not exercised that option