Bank Finance for home

[sgt]

I know not exactly new, but I don't see anything new on the subject and things change quickly here. Has anyone had any recent experience with getting bank financing for home? We have pretty much run into dead ends, after promising starts with Kasikorn and SCB. The dead end comes, of course, after they get the money for the survey. One bank person said I should transfer all my money from the states to their bank and we could talk again in 6 months, yea and I fell off the pumpkin truck yesterday. SCB says maybe they loan 500,000 on a 1.6 mil. baht house. Well hell, if that was all I needed I would just pay in full.

I have enough retirement income (unless the US goes broke), but I am 65, and the wife cannot show a job. She has managed the family farm, but that doesn't count. She will receive an income from my retirement for life after I die and I've got life insurance enough to take care of her when I die, which hopefully will be quite some time into the future. We have been paying on the house with the developer for 2 years and if we don't get financed by next year stand a good chance of losing the house or every penny I have in savings, which isn't much, thanks to divorce that led to bankruptcy.

[BobHelm]

Most of the mortgages I have seen here have been offered on new build estates.
So the developer strikes a deal with a lending organisation & leaflets are printed that show how much it costs to borrow on the various styles of house over a 5, 10, 15, etc. year time frame. Most also allow the owners down payment on the property to be paid over a twelve month period as well - so 15,000 a month for a year for example.

TG tells me it is possible for us to mortgage directly with a bank on an individual property, but the bank are going to require some sort of long term history with us. For example, the bank we have the car financed with would look at us favorably for a mortgage after we had paid of the 4 year car loan with them - as we have a reliable 4 year history of on time payments. Another Bank would probably ignore that history...
The banks here remind me very much of the banks back in the UK when I was first looking for a mortgage all those years ago. They are doing the customer a huge favour & can afford to 'pick' what customers they do business with.

Sorry this isn't very encouraging, but I think you will need to be fortunate to get a mortgage. Can you not ask the 'developer' of your property if he/she has a source of mortgages somewhere??

[maikauzai]

I think there're two problems here. You paid your house far too much over the bank's survey as what the fair market value is. Banks usually loan no more than 70% of the market value. Also, unlike in the States, banks don't routinely offer 30 year mortgage, but 10, 15, 20 years.

[wazza]

A twist on the mortage issue. Would an American bank lend you the money to build a house in the US if all your polices / securities were held in Thailand ? Would you qualify for a loan in America with the income etc you have stated ??

Thai banks , like most banks fail to recognise international assets, reason is simple, if you default on the loan, they have very little chance of geting their outstanding balances back from another country and if they finally do get it, it was an expensive exercise.

U basically dont have any assets, just a fixed income from pension.

Try UOB , they have a branch in Udon, they lend to expats, as they are Singapore based, but u need assets as security for mortages .

[sgt]

I was already aware of the many reasons to not loan, especially to a farang who can up and disappear. I can understand the banks problem, if I split maybe my wife couldn't make payment, right. I would have no problem with a 15 or 20 year mortgage or 70/80% of value, not 31.3% of value, no I didn't pay over fair market value. An American bank probably wouldn't give me the time of day for a mortgage, my area of SE Texas isn't hurting for home sales, yet. I could never afford a new home in the US, I can here. Those are all problems I was well aware of. We will give UOB a shot, along with all the rest.

Thanks

[papaguido]

We got a loan about 5 yrs ago and I can tell you that age was a factor. They took my wife's age into consideration, even though she didn't have a job and I was the sole income provider we got a loan on 80% value of the house. Back then it was a little easier, I wasn't even in Thailand when they processed our loan. We went through KrungThai bank.

About 2 years ago, there was a thread related to this, I recall someone posted a news article which stated something to the effect that most banks we're only allowing 50% on the value of the house to Thai/Farang relationships. I think, but not certain that these changes were as a result of the past Prime Minister. I recall it being really controversial, so it may be worth a search.

[kjellsnell]

I am a customer in the Krungsri bank and they offer loans to me allmost every time i am in the bank for some business. Last week i take out some money cause i by a new car, the manager of the bank says....you can borrow the money if you like to buy a house or a car at the same time if you like!

In Thailand the bankloansystem is built on relationship between the bank and the customer and i been a customer at the same bank for many years. I started my relationship whit the bank by transfer money to my new bankaccount and after that i done many businesstransaktions ower the years and the bank know who i am and that i take god care of my economics. That means.... to have a loan from a Thai bank you have to show you are a solid customer that they can trust ......then you can borrow money in an easy way!

The normal praxis the bank like to use is maximum loan up to 80% if you are a solid customer but if they feel insecure about the loan, they go down to 50%......not under cause that means they for the moment, dont like you as a loantaker! 30 years loan is not popular in any Thai bank.......

[thanuhak]

A couple questions:

1) Do you reckon Finance Companies would do the same re lending, considering I've bought 2 cars through them over the years? And never missed a payment, this have a spotless record with them?

2) And what if it was a business I wanted to buy, and not a house? Providing of course that the business checked out well as a thriving, going concern?

Cheers.

[trubrit]

A couple questions:


2) And what if it was a business I wanted to buy, and not a house? Providing of course that the business checked out well as a thriving, going concern?

Cheers.

Just wondering who would want to sell a business that's a thriving , going concern ?

[thanuhak]

There are lots of reasons. Doesn't help answer my question.

[wazza]

One thing any person who is looking at mortages in the long term should do, if they are firstly going to finance a car eg.

Make sure the finance company is alligned to a Thai bank, that way ur credit / repayment history is easliy accessible.

As to who wants to sell a thriving business, thats easy , an entrepeneur who had a business plan, found a niche market, worked hard and found a buyer .

I dont think the Thai banks allow a dream, a wing and a prayer and your experience as a customer in Pattaya , as background stability for their loan requirments.

[sgt]

I remember that thread about farangs and only 50%, did a quick search and didn't find it. One thing about Thailand though, give it 24 hours and it has a very good chance of change. I did read recently in either the Bkk Post or Nation that at the present time all banks were very reluctant to give loans to farangs. Frankly looking at the world, ie farang, economic situation and especially with the corporatists continuing with the destruction of America they started under ronald ray guns and went into high gear with cheney/shrub et-al, I would be very leary of loaning also.

We will just keep submitting maybe we will have a little luck from Buddha.

"I dont think the Thai banks allow a dream, a wing and a prayer and your experience as a customer in Pattaya , as background stability for their loan requirments." by wazza. I don't know you, don't give a damn who you are, if you intend this insult for me, better make it face to face partner.

[wazza]

Sgt

I sent you a PM explaining that my reply was to the post and wasnt meant as any insult etc and i have used examples in my posts to date .

Your reply basically threatening physical violence is not appreciated , " Don't cross me in public. Looking forward to meeting some day."

[trubrit]

I am a little puzzled why anyone would want to borrow money in a currency not the one their pension or other income originates in .For example. One poster said he borrowed 80% of the purchase price of his house 5 years ago. Now that means for every million baht he borrowed at the time he owed say, 25,000$. Now after 5 years and the dramatic fall in the currency exchange, he will be paying back over 30,000$.Now this doesn't take into account any interest charged, which itself will be accruing at today's rate of exchange . Now I don't know if its possible but it would appear to make more sense to borrow from the country, from which your income comes , or at least in the currency of it .Can it be done?

[wazza]

Trubrit

so true, I can borrow in 4 currencies , due to my banking status> HSBC offshore will allow you to have USD, Euro or GBP currency accounts, as well as my home country bank, There are minimum standards for security for significant loans, but can be done.

[sgt]

It wasn't meant to be appreciated. If you don't have anything positive then keep your fingers off the keyboard. You don't know me, yet you go out of your way to insult me and my family. I made the post, it was an insult. No keyboard warrior here. I'm not here to trade pantie waist insults. You owe me an apology.

[BobHelm]

sgt I certainly did not take it that wazza was referring to you in what I took to be a humorous, but quite probably an accurate description of how many Thai Banks will see requests from a Falang. I was surprised when you took it personally, but am glad that you modified your reply.
I have read wazzas' posts ever since he joined the Forum (3,000 of them in 5 years) & a "keyboard warrior" is just about the last description I would apply to him..

[Galee]

Having read wazza's comments, I can't see anything inflammatory in them. He even goes onto give advice about trying another bank. No apology required as far as I can see.

[papaguido]

I remember that thread about farangs and only 50%, did a quick search and didn't find it. One thing about Thailand though, give it 24 hours and it has a very good chance of change. I did read recently in either the Bkk Post or Nation that at the present time all banks were very reluctant to give loans to farangs. Frankly looking at the world, ie farang, economic situation and especially with the corporatists continuing with the destruction of America they started under ronald ray guns and went into high gear with cheney/shrub et-al, I would be very leary of loaning also.

We will just keep submitting maybe we will have a little luck from Buddha.

"I dont think the Thai banks allow a dream, a wing and a prayer and your experience as a customer in Pattaya , as background stability for their loan requirments." by wazza. I don't know you, don't give a damn who you are, if you intend this insult for me, better make it face to face partner.

Sgt,

We had to shop around, got lucky on the 3rd try. The first bank said NO!, the second would only give us 50% and we got lucky with Krung Thai.

[sgt]

papaguido, thanks for the advice/encouragement. We have a packet put together out of trial and error that hopefully will make the submission for a loan a bit easier. I know that it is difficult for the Thai banks to understand my retirement income (SS and 2 government agencies), we have everything translated in hopes that will help. All we can do is just keep trying.

waza, you owe me an apology. If I wanted smart ass remarks I would have asked for them. Your remarks about Pattaya are meant as an insult to my family. Your 3000 or whatever posts give you no right to smart ass somebody that is just asking for advice. I don't care if you have 3,000,000 post and are worth 10 times that much in US dollars, you are no better than me and I won't take condescending smart ass crap from anybody, never have never will.

Let me try to explain just a bit for all the rest of you that don't know diddly squat about me. If you are my friend you can give me all the hell you want, and they do. If I don't know you, you better come prepared to back up your crap.

Hoa Binh