opinions for best home loan options for self employed married thai/farang couple?

[gtrinbkk]

Hi,

We are a married thai/farang couple that primarily work as contractors abroad, because of our

occupation we are always able to work/travel together, our salaries always being wired to our respective bang accounts in

Thailand. Occasionally we do contracts in Thailand, but make more abroad. We are now wanting to get a home loan for a condo in bkk and would like to hear experiences from any other self employed thai or foreigners.

Has anybody been in a similar situation? Is there a bank that is easier than others for self employed/contractor people?

We can show all necessary docs etc, income statements, contracts, sizable down payment, statements showing very good income for prior 6 months, and future contracts as well, but we are aware that to the bank we may look riskier than an office worker making 15k/month.

Any helpful feedback is appreciated as we have our eye on a property and would like to apply to the right bank instead wasting

alot of time with banks that are not self-employed friendly.

Thanks!

[donx]

Assuming you are the foreigner and assuming since you work mostly abroad you don't have permanent Thai residence, if you want the condo in your name then the money must be shown to originate from overseas. This would preclude you from getting a loan from a Thai bank for this purchase. However, if you are comfortable with the condo only being in the name of your Thai partner, then others here can provide information on how to secure such a loan.

[mikebell]

I have a bang account but keep it secret from the missus.

[Paul944]

Banks generally give a mortgage till 80%, so you need to have 20% savings already. Contractors are considered a higher risk so the bank probably lowers the maximum mortgage till 60%. No idea how the banks in Thailand estimate the value of the property. In the Netherlands there are certified appraisers and the banks accept the value they estimate.

Probably a mortgage will only be for a Thai. Foreigners can be accepted as guarantees.

Banks want a profit with minimal risks so you have to convince them the risk is minimal. Mostly they only accept you if they know they can claim your property if you do not pay them anymore and selling the property will cover the loan with a very large margin.

[starship]

I've just sent you a p.m

[bkk_mike]

Your Thai partner can probably get a mortgage far more easily based on her own income. i.e. The banks will be fairly flexible with a Thai person's income so long as they see a history of deposits to bank accounts, and you're not borrowing an unusually large amount.

For a foreigner, back when I was a contractor (earning more money than I do now) - I couldn't get a mortgage. The only mortgage we got was my non-working wife getting one based on the rental income from our flat in London. (i.e. bank statement showing regular deposits)

(By non-working, I mean not in paid employment... At the time we had 2 small kids, and a third on the way).

Later, being an employee in Hong Kong, I was able to act as guarantor when we bought a flat, using my income for proof of funds, although it got discounted by, I think 15%, because it wasn't in Thai baht. However, that required letters from the employer confirming income, etc.

Personally, I was never employed in Thailand, always employed abroad. If you've got contracts in Thailand, you'll have associated work permits which should make life easier.

[cdohrman]

In case you have a work permit, or even better a PR status in Singapore, you can apply for a home loan in Singapore for Thai properties under your name with UOB Singapore. The collateral will be hold with UOB Thailand. Quite attractive interest rates if you keep the repayment period below 5 years.

Otherwise, any of the big Thai local banks will offer your wife (and only your wife) a home loan. Interest rates varies, depending on the 'credit worthiness assessment' of the bank on the official income status of your wife. Interest rates will be unreasonable/unacceptable high (only for the most desperate or naive or stupid ones) if you do not show proof of a regular employment income, etc. I'm not aware, that foreigners can apply for a home loan for their own property at any Thai bank.

[Soutpeel]

In case you have a work permit, or even better a PR status in Singapore, you can apply for a home loan in Singapore for Thai properties under your name with UOB Singapore. The collateral will be hold with UOB Thailand. Quite attractive interest rates if you keep the repayment period below 5 years.

Otherwise, any of the big Thai local banks will offer your wife (and only your wife) a home loan. Interest rates varies, depending on the 'credit worthiness assessment' of the bank on the official income status of your wife. Interest rates will be unreasonable/unacceptable high (only for the most desperate or naive or stupid ones) if you do not show proof of a regular employment income, etc. I'm not aware, that foreigners can apply for a home loan for their own property at any Thai bank.

A credit worthy foreigner can apply for a home loan on a condo only in their own name with a Thai bank, they cannot apply for a loan on a landed property for obvious reason

As regards your last paragraph your talking absolute poo, typical interest rates are around 7% which is the going rate, further if foreigner can co-sign on a mortgage for a Thai national and the assesmnent can do done soley on the foreigners income, been there and got the T shirt

BTW what is the rate from UOB ? And is it a mortgage and not a personal loan and if I remember correctly you don't need a work permit or PR for the UOB loan ???

Edited November 19, 2014 by Soutpeel