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Thread: Thai banks and house loans

  1. #1
    Senior Member geir's Avatar
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    Thai banks and house loans

    We have a small loan on our house in Ranong and I just found out that you can argue the interest rate every 3 years. Ours is being set down from 6,25% to 4,25%. For us it will be 1100 Baht less to pay every month. We will still keep on paying the same as before and the pay down time will decrease quite a lot.
    So for any of you out there, it's worth having a chat with the bank.

    Don't like the system though, that you have to be on alert yourself to not get ripped off by the bank. I think in the western world the banks have to inform their customers about opportunities like this. We found out from a friend of Joy, no words from our bank.
    We use GHB (government housing bank) BTW.
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  2. #2
    Super Moderator LivinLOS's Avatar
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    Surely thats the same as any variable rate ??

    Except in Thailand they will only tell you when it varies up.. and leave you to miss it when it varies down..
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    Senior Member kris-one's Avatar
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    But a variable rate should be automatic shouldn't it? Like a mortgage if base rates goes down then your payments go down, you don't have to call them to tell them




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    Super Moderator LivinLOS's Avatar
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    Quote Originally Posted by kris-one View Post
    But a variable rate should be automatic shouldn't it? Like a mortgage if base rates goes down then your payments go down, you don't have to call them to tell them
    Thai banks.. I am unsurprised they only vary up..

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    Senior Member geir's Avatar
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    It actually have been going up and down during the last 3 years, but if you have been loyal to the bank and payed on time, they are willing to let you negotiate every 3 years. I think the National Bank interest rate is 2,5ish%, so they for sure have room for negotiations.
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    K2
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    Thai mortgage rates at 2.5% ... the end is neigh! Incredible - no risk premium at all ... this is not going to have a happy ending!

    Should fix your rate at these daft levels and help ensure your lender blows up!!
    Its My Life .....!

  7. #7
    Senior Member geir's Avatar
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    Quote Originally Posted by K2 View Post
    Thai mortgage rates at 2.5% ... the end is neigh! Incredible - no risk premium at all ... this is not going to have a happy ending!

    Should fix your rate at these daft levels and help ensure your lender blows up!!
    I don't think they give that low rates for houses. I think that's the rate the national bank gives to the other banks?? In Norway you get easy a house loan with 20% down payment at 2,5%......
    Last edited by geir; 22nd September 2015 at 19:59.
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  8. #8
    Super Moderator LivinLOS's Avatar
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    Quote Originally Posted by K2 View Post
    Thai mortgage rates at 2.5% ... the end is neigh! Incredible - no risk premium at all ... this is not going to have a happy ending!
    Thai mortgage deals.. always with a happy ending..

    I really should work in advertising..
    Steve@thaib likes this.

  9. #9
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    Quote Originally Posted by LivinLOS View Post
    Thai mortgage deals.. always with a happy ending..

    I really should work in advertising..
    Where do I sign?

  10. #10
    Senior Member geir's Avatar
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    This is getting sillier and sillier. My neighbor opposite the road sold his house for 1,7 mil Baht. Brand new it costed him 1 mil Baht about 3,5 years ago, but the guy have done nothing to it. No garden, no kitchen or any other extras. At the same time it got a lot of wear and tear to it in traditional Thai style.
    The potential buyer is bringing the bank to look at the house to ask how much money he can borrow to buy it. The bank-guy is having a quick look around and telling him he can get 2 mil Baht, if he wants more they need to go through a longer and time spending process.
    The guy is overly happy and spends 1,750k on the house and paperwork and still got enough money to buy a brand new car on finance......
    No wonder things are going down the drain in Thailand, we talked about household debt in another thread.
    On the bright side, I also payed 1 mil for my house and a future buyer can probably get 2,5-3 mil in the bank to purchase it 5555
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  11. #11
    Super Moderator LivinLOS's Avatar
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    Quote Originally Posted by geir View Post
    This is getting sillier and sillier. My neighbor opposite the road sold his house for 1,7 mil Baht. Brand new it costed him 1 mil Baht about 3,5 years ago, but the guy have done nothing to it. No garden, no kitchen or any other extras. At the same time it got a lot of wear and tear to it in traditional Thai style.
    The potential buyer is bringing the bank to look at the house to ask how much money he can borrow to buy it. The bank-guy is having a quick look around and telling him he can get 2 mil Baht, if he wants more they need to go through a longer and time spending process.
    The guy is overly happy and spends 1,750k on the house and paperwork and still got enough money to buy a brand new car on finance......
    No wonder things are going down the drain in Thailand, we talked about household debt in another thread.
    On the bright side, I also payed 1 mil for my house and a future buyer can probably get 2,5-3 mil in the bank to purchase it 5555

    Its 1997 all over again..

    The only thing that surprises me is.. Is a thai buying a second hand house !!

    Up there the resale market is near nothing, the new builds sell (with developer finance) but the second hand homes are really not wanted.. Add in something like 5000 new homes been built just on my side of the city in the last year or two and it makes for a very strange market.

    Been having a nightmare to find a new home, I dont want standard Thai moobaan homes of which there are 100s and the stock of homes with a garden and western kitchens, pools, etc is so small.. Finally got a few choices in the last 2 days. Been a very stressful few weeks in truth.

  12. #12
    Senior Member geir's Avatar
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    We get Thais weekly in our soi asking if anything is for sale. We're in a very attractive part of town where they are building the new Tesseban and Ampur office, we get the new football stadium here and we're close to Tesco and Macro. Still countryside next to a big river (clean one from the near mountains).
    My only regret is that I didn't manage to talk Joy into buying two houses when we bought this one.
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  13. #13
    Super Moderator LivinLOS's Avatar
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    Quote Originally Posted by geir View Post
    We get Thais weekly in our soi asking if anything is for sale. We're in a very attractive part of town where they are building the new Tesseban and Ampur office, we get the new football stadium here and we're close to Tesco and Macro. Still countryside next to a big river (clean one from the near mountains).
    My only regret is that I didn't manage to talk Joy into buying two houses when we bought this one.
    Crazy.. Where I live they have made 1000s of houses. Not an exaggeration, much more than 100s.. Something like 3 or 4 1000 on one road our of town. And yet where I live, theres less than half the houses occupied.

    My tambon, the sub 1km from my house.. has the highest length of unsold time on market in all of Thailand.. With a >24 month average time to sell, and most of those are new builds.. Yet they are building houses and breaking ground for more like it doesnt matter no one bought the last lot !! Every bit of rice paddy they are making more houses, when the last lot sit there !!!

    Chiang mai is a bizarre market, today I got half dunk with a super pleasant dutch guy who showed me a wreck village build quality, maybe 2 - 3 million baht build home, talking about how he wouldnt take less than 12 million for it.. OK, good luck !! I also looked at a really nice german built plot in mae rim, big place in almost a rai with ponds and good layout of a good build quality, and he cant get an offer with a 5 million baht asking price..

    These 2 people should meet and have a beer..

  14. #14
    Senior Member geir's Avatar
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    I think the money is in the lower market that Thais with normal plus income can afford. So maybe up to max 3 mil Baht. It's new house projects here as well that just slowly is being developed. But the location is not so good and the prices still high. (2,5 mil for a smallish 2 bedroom house and as good as no garden).
    And because of the mountains it's not a lot of land available close to the city, so the lack of land is also pushing house prices up.
    Even if I borrowed every single coin to buy a 2nd house 3,5 years ago I would have a house for free today. Mad!!
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  15. #15
    K2
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    London seems positively sane after reading this thread 5555
    Steve@thaib and kris-one like this.
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