Mortage Companies/banks - For Farangs

[listenup]

Hi guys,

Does anyone know of any companies or banks that offer mortages to forigners?

I have a company, steady income, deposit and work permit.

cheers,

chris

[Moonfruit]

Do a search.

This topic is covered at length at least twice over the last couple of weeks/days.

[thaigene2]

Basically the answer is no.

If the purchase price is more than 12 million you can 'apply' to Bangkok Bank in Singapore. The terms are sh*t. You repay in 10 years or less. I figured it out to be a minimum monthly repayment schedule of around 100,000 baht - changed into a foreign currency - becuase BOT regs do not allow foreigners Thai baht loans.

If you are married to a Thai you can guarantee the loan (allegedly - believe it when they approve it) - but only for a property in her name - not yours and not jointly. Again you have to repay in 8 years max and have minimum 50% downpayment. Oh - and then there is double interest rates for farang guarantors.

If you have Permanent Residence status you can apply in your own name for a thai baht loan - but doesn't mean they will give you one, and according to Cassanundra they still offered higher rates.

You can get a company here to lend you the cash but they will then claim the freehold - it's stupid - and you'd either have to be too - or absolutely desparate...

[Thaibel]

Best and cheapest way to do is from your own home country if possible.

Thaibel Asia

[steveromagnino]

Cannot guarantee what the experiences of others have been. Banks I can confirm from personal knowledge that will give loans to foreigners for condos without guarantees:

- Thanachart

- SCB

Someone I advised has checked with a few other banks and was offered loans from them also. There are a least 2 people I have discussed this exact subject with on the board that I can recall have got mortgages no problem.

Conditions AFAIK:

- could borrow about 60% of estimated value (lower than paid value)

- could borrow for term of 10 years about

- unsure as to whether the various promotional campaigns were available to all

- need WP/visa/income/job history

- no need for Thai gaurantor

Main difference is that the 3 year promotional campaigns such as first year MLR less 2% min 3% etc type campaigns were not necessarily available.

Pays to talk to several branches, rather than just going to one. Depending on her appearance and demeandour, taking a Thai wife/partner might be a help or a hindrance. Knowing how to negotiate and be nice to people (a skill many farang here do not seem to have) might also help as well; barging in and demanding things from a bank doesn't work here or most other places; banks don't understand the words 'customer service' I think they take them out of the dictionaries that are in banks and in training manuals :_)

[sibeymai]

Last year the wife and I wanted to buy a house, in her name of course. Kasikorn, Bangkok Bank, Bank Thai, Thai Military Bank and SCB all told us that they would take our combined income and loan up to 80% of their valuation for a period of 22 years (oldest lender reaching 65). No problem they all said. Having what we thought was a commitment we paid a deposit then went to the bank of our choice to submit the loan application. each bank reneged on their commitment. Of these all except SCB eventually said they don't loan where foreigners are involved, but allowed us to apply and took our money for the valuation first. SCB eventually offered a loan at 50% valuation. Ultimately we lost our deposit because we could not get finance.

The moral from our experience is "Don't believe anything a Thai bank tells you and if it's in writing it's not worth the paper it's printed on." unfortunately it was a very expensive lesson to learn. If you pay a deposit make sure there is a clause in the contract that ensures it is refunded to you should you not be able to secure finance. Not normal practice in Thailand I believe, but I wouldn't consider purchasing again without it. Far too much risk.

Of course, if you can prove to the bank you don't need the money they'll be a lot more generous.

[thaigene2]

As above, I have a very similar experience - and very recent.

SCB also told me it would provide a loan for either a condo (up to 60%) and would do something similar for a house-loan in my wife's name (of course) but with me as a guarantor.

I wasn't convinced - and good thing too as it turned out. I had an accepted offer in principal to buy a condo - but resisted the agent's pressure for a quick deposit until the bank did the valuation and confirmed the loan.

The bank did the evaluation and then rejected the loan - because foreigners can't have thai baht loans for property purchase. So the branch manager - who swore up and down that he had arranged loans for many farangs before - had to tell me the bad news and said it was a zero-tolerance policy from head office. Needless to say I refused to pay for the evaluation (already done and valued 5% higher than the agreed price).

I agree with the above "moral." If Thailand banks won't take even a minimal risk on me - then I won't spend all my money here. Simple as that. I've already repatriated my money and we will leave Thailand when my present job finishes. When my Thai-born kids are grown we'll come back here and buy everything in sight....probably at a higher price..but them's the breaks. Revenge is a dish best served cold.

[bob4you]

SCB is scum, they assured me they would do 50% mortgaqe for my Thai company, just before scheduled close said I needed to put 100K more down, I did it paid off seller and only left the mortgage balance. 90 days later the called with bad news, manager would loan only if I put twice the mortgage amount in a savings account as pledged collateral. Needless to say I had some unkind words for bank, loan officer and manager but was caught between rock and hard place as seller already spent her equity.

You can tell they are lieing whenever their lips move. I have been in mortgage business for more than 25 years in US and would have been thrown in jail if I used the tactics the Thai banks use.

Anyone wanting to talk about setting up a Thai mortgage company paying investors 8% secured by first position @ 60% LTV and backed by mortgage insurance PM me and we will set up a thai company.

[thaigene2]

SCB is scum, they assured me they would do 50% mortgaqe for my Thai company, just before scheduled close said I needed to put 100K more down, I did it paid off seller and only left the mortgage balance. 90 days later the called with bad news, manager would loan only if I put twice the mortgage amount in a savings account as pledged collateral. Needless to say I had some unkind words for bank, loan officer and manager but was caught between rock and hard place as seller already spent her equity.

You can tell they are lieing whenever their lips move. I have been in mortgage business for more than 25 years in US and would have been thrown in jail if I used the tactics the Thai banks use.

Anyone wanting to talk about setting up a Thai mortgage company paying investors 8% secured by first position @ 60% LTV and backed by mortgage insurance PM me and we will set up a thai company.

Yes it's like up to the whim of the officer on duty at their HQ on any given day/hour. Agreements, contract law and due dilligence don't really seem to mean anything here. This is why I don't understand why any foreign company wuold try to do biz here. They are constantly watching the goalposts move - Temasek learned that, so did Carlsberg Beer, Pizza Hut, the American cable guy (forget his name)..Aren't there international rules of business and financing? How do banks keep changing rules, flip-flopping, denying foreigners the right to buy a home when they are married to a Thai and have Thai kids born in the country?? Don't these things violate SOME kind of international agreement?

[paulfr]

This is a very diappointing thread to read.

Thanks for the heads up fellas.

Was just about to go thru the find a house and get a loan legwork.

But it looks like a dead end not worth pursuing.

Takes alot of patience and a positive spirit to continue to live here.

Edited October 28, 2006 by paulfr

[sinam]

This is a very diappointing thread to read.

Thanks for the heads up fellas.

Was just about to go thru the find a house and get a loan legwork.

But it looks like a dead end not worth pursuing.

Takes alot of patience and a positive spirit to continue to live here.

Don't be so down paulfr, the samplings here are small. Most of the people i know who have gone for mortgages with their Thai wives (and even partners) have received them. Yes the climate may have changed a bit lately based anyways on some anecdotal proof but don't give up. I know guys a couple of years ago who did a zero % down mortgage. I don't think they give them out anymore to farangs and good thing, as they have to pay an extra fee for mortgage insurance that covers the bank for the deposit they didn't put down. This is standard practice in the west too and can add thousands to your bill. I’ve read that in the west some banks have conveniently forgotten to take it off once you hit the 20% or the given benchmark. Stay away from this type of insurance.

My suggestions for people considering applying for a mortgage in Thailand is before you go to the bank and ask for a house loan is to do the following:

* Establish a good credit rating as soon as possible in Thailand. I got a credit card and a car loan even though I didn't need either. I did the car loan just for year with no Thai guarantor all just to establish a credit rating (good father’s advice that I’ve applied to my youth and all countries I’ve lived in) BTW it took a couple of tries to find an agent who would give me one.

* Invest a little in Thailand. Not in a savings account but something more long term GIC or a mutual fund or even retirement fund. It doesn't have to be much. Keep ALL your paperwork. Banks love this stuff and they will go photocopy happy with it. None of my loans or investments are with the same bank either and every time I go to the banks for something, the new bank on the list always gives me the best deal, presumably to get my business which sounds pretty normal to me.

* Having a Thai wife shows commitment to the wife but not to a bank. Give them an excuse to give you a loan and not the easy one for not giving you the loan "you are farang" I would like to know how many times they use this excuse because they think its the easiest one to give so the farang can safe face and they don't have to tell them that their credit history stinks (In thailand where it counts).

SiNam

[Sunbelt Asia]

http://www.bangkokpost.com/Yourmoney/30Oct2006_money01.php

Just as in Phuket, financing is a problem for both developers and buyers on Samui, so most transactions are on a cash basis. Dhevatara has offered some of its buyers the option of placing a deposit and making extended payments before title transfer.

Bangkok Bank does offer foreigners mortgages but Mr Owen said only four mortgages were given out in Samui because of the large number of conditions attached. "They will only lend up to 80% of the deemed value, which is invariably around 50% of what the developers are actually selling at. And there are very strict criteria leading up to that."

www.sunbeltasiagroup.com