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A home loan, also known as a housing loan or a mortgage, is an amount of money you borrow to buy a house from a bank or another financial institution. Simply put, a home loan can help you buy a house without having all the cash upfront.
There are some cases where you can get a home loan even though you have the money to pay it off. For example, if you are an investor, you can use a home loan to buy a property and free up funds for other investments.
Home loans consist of an interest rate and terms of payment that are adjustable or fixed. The loan is secured against the house you’re buying so that if you are unable to continue paying the loan in the future, the lender may demand you to sell the house to settle your debt. Basically, you, as the borrower, has possession of the house, but the lender is the one who owns it until you completely paid the home loan off.
Buying a house in Thailand, whether it is your first or not, can be one of the most fulfilling times of your life. However, the whole process of buying, especially getting a home loan, can be daunting. Therefore, we simplified the process of applying and getting a home loan into five easy steps below.
Before you proceed to interact with a mortgage lender, arrange your financial records first.
Your mortgage expert will check your accounts and give you an idea of how much you can afford to borrow.
When you have picked a home to purchase and deposited your reservation deposit, meet your mortgage lender to complete the loan forms.
The conditions of your mortgage should be clear. For example, to cover the debt sum, the land must be priced at a certain value, or the title must be clear. You may need to offer evidence of insurance as well.
Prior to your meeting, you will be told of the cumulative balance of your loan. Your loan will be funded immediately after you sign the papers!
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It’s a lightning-quick process with no nonsense. They were able to deliver paperwork and funds in record time. During the pandemic, I dealt with several mortgage lenders and never received any response.
Working with Khun Anne was a pleasure. She was very knowledgeable and was always upfront. She was patient with us and took the time to explain everything to us, she also mader herself available if we needed her.
Easy inquiry form, easy information to understand. I have already prepared all the documents that the Thaiger will be needing, looking forwards to be hearing from you soon.
Good English spoken by our representative, she was very formal and knowledgeable with the product. It wasn’t long after I inquired that I received a call back; the Thaiger’s process was impressive, and I will be recommending others about this service.
Very profressoinal staff with all the answers to my question, would recommend this service to other people who are currently looking to buy a house.
It’s been such a crazy year, it’s nice to have something go so smoothly!
The following banks in Thailand support you with the best lending opportunities. Each bank has different requirements for foreigners who want to apply for a home loan.
UOB offers Home Loan Scheme to allow foreigners access to financing when they want to buy condominiums in Thailand. This home loan scheme is a joint program between UOB Thailand and UOB Singapore. The loan is obtained in UOB in Singapore, then secured by SBLC and issued by UOB in Thailand to register the home loan locally. Although the home loan is obtained in UOB Singapore, the entire application can be made in Thailand, so you don’t have to go to Singapore.
HSBC offers home loan for foreigners who want to acquire condominium, houses, or even land in Thailand. The loan granted is based on the current market value, with condominium 70% of the value, while land and house up to 80% of the value.
Siam Commercial Bank or SCB can help make your dream come true with their home loan program. SCB provides loans at special interest rates, either fixed or floating, of up to 100% of the appraisal value.
I had always wanted to buy a house in Thailand but never knew how to get finance as a foreigner. Fortunately, I came across the Thaiger, and they helped me with all the process. From the very first step, everything was very well organised and transparent. All questions that I had were answered clearly. The team researched various home loans for me and managed to help me secure an excellent loan!
Top tip: Before applying, start with your credit card report or income slip, then get the rest of your documentation in order.
We perform all of the legwork, including an unbiased comparison of the market, so you don’t have to. We work closely with various finance providers, which is why we are always in the best place to offer you the best deals. You can be sure to receive a personalised experience as you apply for your home loan in Thailand.
A home loan is an impressive means of obtaining the home you want by paying the principal sum and interest rate over the loan tenure. But what if you need help financing other things besides a property? Below are several other loans you can consider to help you in various conditions.
The car you’ve been eyeing for a while in Thailand can be yours today with a car loan. No need to worry about interest rates mark up and avoid overpaying.
There are no limits on how funds are spent on a personal loan. The payment system is adjustable as well. It’s flexible and can be tailored according to your needs.
The greatest advantage of getting a motorbike loan is that you do not need to save up to pay for the motorbike in one go. The expense can be distributed into manageable monthly repayments with a motorbike loan.
Need to borrow a large sum of money? A secured loan allows you to borrow a larger amount than you can through other types of credit. Check it out now.
A home loan is a great help for anyone who wants to buy a house. Lack of funding is not the only reason you should take a home loan. Below are a variety of advantages that home loans offer.
One of the cheapest borrowing methods that come with a low rate of interest is a home loan. Unlike other loans, home loans with adjustable interest rates have a zero prepayment charge.
You can also choose to use a home loan facility to save on income, even though you can actually afford to buy a house with your own funds. By using a home loan, you can save your funds to gain an enticing return.
Why use your own money to purchase a house in a cash crunch? Your funds can shield you from other risks in life and help you accomplish other essential financial goals.
GST (Goods and Services Tax) prices have been drastically lowered on home sales, which means buying a house with a home low now can give you the advantage of these low rates.
Is your business ready to take a leap, but you don’t have the working capital to do so? Small and Medium Enterprise (SME) Loans may be the solution you’re looking for.
We understand the challenges and needs of running a business. To make a profit and successfully operate, a business needs monetary support to carry out numerous activities. This is why our SME Loans are tailor-made to suit your business’s needs and requirements. Whether you are looking to maintain a healthy cash flow or you want to expand your business in Thailand, you can always apply for SME Loan and get the financial help you need.
Yes, but as a foreigner, the criteria for getting a loan can be strict. Most credit institutions expect you to have at least a 1-year work permit and a letter from your employer specifying your wage and service period to the Thai firm
It typically takes around 3-10 working days to apply your loan application before you collect your loan
You will need to bring the following documents:
o ID Card
o Housing registration document
o Marriage, divorce or death certificate
o Consent letter from your spouse
o Land deed (original)
o Name registration certificate (if you have changed your name or surname)
There are no banks offering a 100% home loan. As a down payment from you, most lenders demand 10-20% of the home’s selling price. It is often named by some lenders’ ‘one’s own contribution’. The majority, 80-90 percent of the value of the land, is funded by the lender
Teaser period means special interest rate which may be a flat rate for the short term. It offers between 1-3 years. And The floating period is the post teaser period that banks typically set at a floating rate that is equivalent to MRR and also can his rate can be adjusted depending on each bank.
Additional paperwork must be submitted, such as a lending arrangement from another financial entity, instalment receipts for the past 6 months, and a mortgage contract.
The costs of refinancing a mortgage from a different financial institution will be considered, on the refinancing bank, the current bank, and the Department of Land expenses.
