torrenova Posted January 3, 2007 Report Share Posted January 3, 2007 If a Thai wants to get a mortgage, what do they need and roughly what deposit do they need ? Can they put down a larger deposit in lieu of more substancial paperwork as per the UK ? My missus and her sister are lookig to buy somewhere but neither have a "real" job with monthly payslips etc. If they need these, any idea for how far back ? Any tax forms needed ? Totally out of sorts on tihs one so any info would be really appreciated. Many thanks Link to comment Share on other sites More sharing options...
Bangkoktraveler Posted January 4, 2007 Report Share Posted January 4, 2007 We bought a house in the wife's name. We had to put 10% down with financing for 30 years. We went got the house thru foreclosures.... at an auction. Requirements at an auction are easier to get. All that was needed was to prove money coming in (bank statement). Link to comment Share on other sites More sharing options...
elef Posted January 4, 2007 Report Share Posted January 4, 2007 To build our first apartment house we had to borrow some money from the bank. The regular money I at that time sent to TGF was regarded as an income so we didn't have to make a deposit. The bank manager wanted and got a commission of 30 or 50 k baht (don't remember as it was 7 years ago) to approve the loan. Link to comment Share on other sites More sharing options...
loner w/a boner Posted January 5, 2007 Report Share Posted January 5, 2007 There are a LOT of hoops to jump through; depending on which bank you go to. One bank I'm familiar with: 1. the bank determines eligibility based on the Thai's primary job, no second job counts. 2. term of the loan may be up to 30 years, but...if the Thai is older, they subtract their age from 60 (typical retirement age), and that will be the maximum term of the loan, For example, if they are 40 years old, 60-40=20 year note, thus the monthly payments will be higher. Apparently mortgagers don't accept term-insurance payoffs in the event of death before the mortgage is paid off. 3. depending upon the bank, a Thai woman's husband's income MIGHT not be considered, only the Thai's. And, for all banks, what I've learned is dreadful: To the best of my knowledge: 1. There are NO fixed-rate loans, ONLY adjustable-rate. 2. There is NO maximum interest rate they can charge, nor is there a cap on HOW MUCH they can raise it!!! For example, if you take out a mortgage at 5.5% this year with mo payments of 15,000 baht, then next year, IF THEY WANT TO, they can legally raise the interest rate to 10%, 20%, 50%. To my understanding, there is NO LIMIT in law to what they can raise the rate to. Your monthly payments could then be impossible to pay. Therefore ALL interest rate/inflation risk is assumed by the buyer. Link to comment Share on other sites More sharing options...
Ckrisg Posted January 5, 2007 Report Share Posted January 5, 2007 I think there is a story on Stickman readers submissions about a thai with farang husband getting a mortgage worth a read :smirk: Link to comment Share on other sites More sharing options...
Mekong Posted January 5, 2007 Report Share Posted January 5, 2007 And, for all banks, what I've learned is dreadful: To the best of my knowledge: 1. There are NO fixed-rate loans, ONLY adjustable-rate. 2. There is NO maximum interest rate they can charge, nor is there a cap on HOW MUCH they can raise it!!! For example, if you take out a mortgage at 5.5% this year with mo payments of 15,000 baht, then next year, IF THEY WANT TO, they can legally raise the interest rate to 10%, 20%, 50%. To my understanding, there is NO LIMIT in law to what they can raise the rate to. Your monthly payments could then be impossible to pay. Therefore ALL interest rate/inflation risk is assumed by the buyer. Have to disagree slightly here. My mortgage I had with K Bank,the repayment interest was tied to MLR (Minimum Lending Rate) I cant remember the exact figures i think it was 0-6 Months MLR -2% 6-12 Months MLR-1.5 % 12-24 Months MLR - 1% 24 + Months MLR -0.5% So, Banks can offer deals based around MLR, but the MLR itself is not set by the individual banks. If the MLR in Thailand was 50%, I would have left well before it got there. Link to comment Share on other sites More sharing options...
loner w/a boner Posted January 5, 2007 Report Share Posted January 5, 2007 Have to disagree slightly here. My mortgage I had with K Bank,the repayment interest was tied to MLR (Minimum Lending Rate) I cant remember the exact figures i think it was... ...So, Banks can offer deals based around MLR, but the MLR itself is not set by the individual banks. I am delighted to hear that. Everyone I have asked has given me contrary information. Even a mortgage banker I spoke with kept saying "but in the past, we've never..." which really left me uncomfortable. If I understand what you wrote, are you saying that the rate increases even for 24+ months was written into the contract? That seriously limits the purpose of an adjustable rate. Perhaps whoever sets the MLR is the "guardian" of the mortgage rates. Do you know if mortgage lenders can legally change that figure? I'd really be interested to know. Thanks. Link to comment Share on other sites More sharing options...
Mekong Posted January 5, 2007 Report Share Posted January 5, 2007 If I understand what you wrote, are you saying that the rate increases even for 24+ months was written into the contract? That seriously limits the purpose of an adjustable rate. Perhaps whoever sets the MLR is the "guardian" of the mortgage rates. Do you know if mortgage lenders can legally change that figure? I'd really be interested to know. OK Clarification The rates offered were based on MLR, the Mortgage Interest Rate was on a sliding scale 0-6 Months MLR -2% If MRL 5% MIR 3% For first 6 months of the Loan 6-12 Months MLR-1.5 % If MRL 5% MIR 3.5% For 6-12 months of the Loan 12-24 Months MLR - 1% If MRL 5% MIR 4% For year 2 of the Loan 24 + Months MLR -0.5% If MRL 5% MIR 4.5% For the rest of Loan period. Whether Lenders can legaly change their repayment structure is something I never got into, I paid it off before 3 years and K Bank honoured the agreement we made for the duration. When the MLR, was low and a large (-2%) reduction was offered I was making more interest on the capital in investments than I was paying in Interest, but since the repayments were coming more into line with MLR, and the MLR has increased quite a lot over the last 12 months, it made sense to pay it off I cannot vouch for each and every lender or circumstances, just explaining my own experiences. Link to comment Share on other sites More sharing options...
Bangkoktraveler Posted January 5, 2007 Report Share Posted January 5, 2007 The loan my wife got was a fixed rate. I think the nature of the business has a lot to do with it. Actually where she got her loan, they had a plan where you could also borrow for the down payment of 10% so in effect you would be making 2 loans but could have the pleasure of having to pay nothing down. Government employees can get the best deals. They can buy with zero down. What I would do is do some more shopping around for a better deal. Link to comment Share on other sites More sharing options...
loner w/a boner Posted January 5, 2007 Report Share Posted January 5, 2007 The loan my wife got was a fixed rate. Can you name the mortgage company/bank? I've not heard of a single financial institution offering fixed rate mortgages--would love to know! Link to comment Share on other sites More sharing options...
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