mortgages or personal loan for Thai

[Dirk_brijs]

my gf and me are together for over 15 years so no maybe she want my money replies please.

So we are not married but have 2 joined accounts at SCB and BKKbank on which money goes in and out very regular.

she has no official job and i have worked abroad for several years.

we do have a son. We have bought a house 6 years ago which is paid for completely.

Would it be possible for my Thai gf/non wife to get a personal loan or mortgage on the house and how much would she be able to get to return in how many years.

Any idea on the interest rate too if possible to get that loan?

thanks for the advise as I would like to know where we stand before entering a bank as we both dont have too much of an idea on how banks operate.

[Soutpeel]

its possible I guess, but as to the rest of your questions, they are only answers the specific bank can give, other than to say if its a property the mortgage is better than a personal loan, as the interest rates will be lower, for a mortgage budget on around 7%

On a mortgage, a foreigner can co-sign on the loan for the Thai national, if the foreigner qualifies, but the loan still in the Thai nationals name, you dont need to be married, certainly in the case of SCB having actually done this required a WP and letter from my employer stating my job in Thailand was "permanent" plus 12 months payslips, for me a very painless process, start to finish about 6 weeks, I only had to go into the bank once to sign, literally 15 minutes.

All you can do is shop around the major banks, SCC, K-bank etc

[Dirk_brijs]

question was more if she can get a kind of loan without me being involved what so ever.

So just based on having a house should be sufficient or does she need a job as only requirement?

[Soutpeel]

question was more if she can get a kind of loan without me being involved what so ever.

So just based on having a house should be sufficient or does she need a job as only requirement?

she may very well be able to, using the house as collateral, but don't think anyone can tell you what a bank will or will not do in a specific case, only they could answer that for you.

She may have to get another Thai national to stand surety for her, you don't need to be involved

[Dirk_brijs]

question was more if she can get a kind of loan without me being involved what so ever.

So just based on having a house should be sufficient or does she need a job as only requirement?

she may very well be able to, using the house as collateral, but don't think anyone can tell you what a bank will or will not do in a specific case, only they could answer that for you.

She may have to get another Thai national to stand surety for her, you don't need to be involved

so its more like a hit or miss depending how the bank manager feels that day situation?

[Soutpeel]

question was more if she can get a kind of loan without me being involved what so ever.

So just based on having a house should be sufficient or does she need a job as only requirement?

she may very well be able to, using the house as collateral, but don't think anyone can tell you what a bank will or will not do in a specific case, only they could answer that for you.

She may have to get another Thai national to stand surety for her, you don't need to be involved

so its more like a hit or miss depending how the bank manager feels that day situation?

well yes, same as everywhere else in the world when dealing with bank managers...

all they are doing is assessing the possible risk of the loan defaulting that's all and if it does default can they get their money back...

in a lot of cases banks "don't like" property as collateral, as if the loan does default and they take the property off a person, they are stuck with a property they have to off load to get their money back, which involves effort and cost on their part...

[Dirk_brijs]

question was more if she can get a kind of loan without me being involved what so ever.

So just based on having a house should be sufficient or does she need a job as only requirement?

she may very well be able to, using the house as collateral, but don't think anyone can tell you what a bank will or will not do in a specific case, only they could answer that for you.

She may have to get another Thai national to stand surety for her, you don't need to be involved

so its more like a hit or miss depending how the bank manager feels that day situation?

well yes, same as everywhere else in the world when dealing with bank managers...

all they are doing is assessing the possible risk of the loan defaulting that's all and if it does default can they get their money back...

in a lot of cases banks "don't like" property as collateral, as if the loan does default and they take the property off a person, they are stuck with a property they have to off load to get their money back, which involves effort and cost on their part...

I understand the risk the banks take and so but what I think is funny is that someone with a regular so called pay slip would have much less trouble getting a loan than?

Who says he or she still has that job in a years time from now?

Litte weird how banks reason as a house as colateral is a sure return right? even if you have to try and sell it first.

[Dirk_brijs]

would it help to go to a bank where we had previous accounts open a new account (business) or go to a new bank and open a business account there on her company in one time? Or as it is a small company better just open a new personal account on company name?

[Soutpeel]

would it help to go to a bank where we had previous accounts open a new account (business) or go to a new bank and open a business account there on her company in one time? Or as it is a small company better just open a new personal account on company name?

now your getting into something else now..business accounts, my understanding from your OP, was that it was a mortgage or personal loan, now you seem to be inferring a company loan, a whole new discussion, as if its a new or small company, there is most likely less chance of getting the loan.

not fully sure of the full details under company law in Thailand, but one suspects cant open a personal account against a company, most certainly not in the case of limited company, as the company is a legal entity ie a "person"

What exactly is it it your trying to do with this loan ?.

[Dirk_brijs]

would it help to go to a bank where we had previous accounts open a new account (business) or go to a new bank and open a business account there on her company in one time? Or as it is a small company better just open a new personal account on company name?

now your getting into something else now..business accounts, my understanding from your OP, was that it was a mortgage or personal loan, now you seem to be inferring a company loan, a whole new discussion, as if its a new or small company, there is most likely less chance of getting the loan.

not fully sure of the full details under company law in Thailand, but one suspects cant open a personal account against a company, most certainly not in the case of limited company, as the company is a legal entity ie a "person"

What exactly is it it your trying to do with this loan ?.

the loan doesnt have to be set up to the company.Can she not get the loan on her name than as a personal loan or mortgage?

the loan would be used to support the set up of the company and other things.

[fletchsmile]

Banks in Thailand prefer to lend against ability to service the debt. Hence this is the key focus. Collateral is only secondary. The reason being is that foreclosure processes in Thailand can be complex and take a long time, particularly if they are contested in some way.

Hence if OP can't show any income and the wife can't show any income that shows no ability to service the debt. The bank really would rather not have to get its money back by having to take possession of the collateral, which can be complex and long-winded, meanwhile tying up their capital which could be used elsewhere.

To put the numbers and capital element into a simple context:

- A bank in Thailand would need to set aside ball park need about 3 baht of capital for every 100 lent on a qualifying mortgage under a standardised approach

- If you then default the bank has to make provisions based on recoverability, time value of money, costs etc. Not to mention the hassle it causes, people's time that could be spent making money elsewhere etc. Let's be generous and say the average loss is 30% that it has to provide. It now has a loss of 30 on 100. That means it's capital goes down by 30. That means it has less capital to lend elsewhere, 30 would be the capital needed for 10 more loans. So oversimplifying it can now make 10 less loans than it would have done if you didn't default. Of course if they lose 60% as the owner contests causes problems, trashes the place etc that's 20 less loans etc. On top it can take ages to get their money back,

So those are some simple numbers as to why a bank is more interested in you being able to service a loan than it is in taking possession of your home via a long winded and possibly complex process

Best thing to do is talk to you bank, and show them how you are going to repay the loan (preferably income from somewhere)

Cheers

Fletch

[Dirk_brijs]

so mortgages are not possible in Thailand?

[fletchsmile]

Yes they're possible. What you need to be able to demonstrate to the bank is how you are going to pay it back, or in their terms how you will service the debt.

[Dirk_brijs]

so if no payslips available from her that would be impossible?

or are there any other means?

as she is setting up a company would not be valid?

[Soutpeel]

so if no payslips available from her that would be impossible?

or are there any other means?

as she is setting up a company would not be valid?

Its not impossible if some one signs as guarantor against the loan, it can be another Thai national or even a foreigner if they qualify

I have signed as a guarantor for a Thai national before, who had no payslips , and all they considered in granting the loan was my income even though the mortgage is in a Thai nationals

As stated in an earlier post, on a new business the bank will even be more reluctant to make a loan and believe it would be illegal to grant a personal mortgage against a company, only the company itself as a legal entity could apply for the loan and the property would be in the companies name

[starship]

I've sent you a p.m