Global Mortgage Finance
(Thailand Property and Land Finance Specialists)
Published 2nd September 2015
This brief article is to be used as a guide and explanation only, on how to use the “Thailand Condo Re/Finance Map” which has proved extremely popular for Foreigners looking to finance property in Thailand.
What is the “Thailand Condo Re/Finance Map”?
A condominium in Thailand is usually, a building which is under construction or, already completed and that has individual units with chanotes/title deeds, ready for people to reside and set up home in. Most if not all units are almost always built with similar specifications and designs with very little to differentiate between them. Perhaps the interior design or fixtures and fittings maybe different though on the whole, actual constructions specifications are the same.
In light of this, it is perhaps easier to pre-approve a whole Condominium building whereby a lender can almost guarantee a certain level of loan size can be achieved against each and every unit in the building. After all, the chances of a unit being different to the one next door are pretty minimal and the chances are, that the level of security a lender needs is almost identical.
The “Thailand Condo Re/Finance Map” is a list of buildings pre-approved around Thailand with set limits that are easily financeable and most likely, have already been seen and lent on, by a lender. i.e. Almost a guarantee of some form of Mortgage finance within the building is available.
Why Map the Buildings and not just provide a List?
The idea of mapping all buildings is so that it is easier for buyers or owners to check out localised finance amounts and compare around their area. Most people know where they live, or where they own, but sometimes do not know other buildings in the area. An owner who perhaps is looking to release some cash from their home or investment, may not see their own building on the list however, may see in the nearby vicinity a building already pre-approved. This can then be used as a benchmark for a lending rate, where it could be almost guaranteed, a loan will be made available after an official comparison is made. Of course, if the building nearby has better facilities, than perhaps a slightly lower loan size could be expected and vice versa. As new client loan requests come in, the list is growing on a monthly basis and is by no means completed so what may not be printed today, could be there tomorrow.
How to Use the Map
First in order to find the map, usually a straight forward Google of “Thailand Condo Finance Map” will pull up somewhere near the top of search. If not, click the following link:
https://goo.gl/VjBEvF
Once the map is open, the following should be displayed with either an alphabetical list on the left to scroll through OR a search box that can be used to look for the condo required. (If you are on a mobile device, it maybe that there is no search box and only a drop down list which needs selecting)
When using the Map from a PC, the search box is usually most easiest to locate a Condo or in some cases the location. Try searching for a Condo name in the search box and various options will be provided. The one with a Red Pin Point can be found within the map with pre-approved amounts.
How to Calculate a Loan Size or Amount Available
If we take the Condo 185 Rajadamri condominium as an example, it may look something like this when selected:
The description in the text box indicates that the maximum loan size will be up to either 60% OR up to the following:
Royal Bangkok Sports Club View
Floors 28 - 33 up to 160,000 Sq.m.
Floors 21 - 27 up to 150,000 Sq.m.
Floors 14 - 20 up to 140,000 Sq.m.
Floors 07 - 13 up to 130,000 Sq.m.
Lumpini Park View
Floors 28 - 33 up to 150,000 Sq.m.
Floors 21 - 27 up to 140,000 Sq.m.
Floors 14 - 20 up to 130,000 Sq.m.
Floors 07 - 13 up to 120,000 Sq.m.
Lang Suan Road View
Floors 28 - 33 up to 140,000 Sq.m.
Floors 21 - 27 up to 130,000 Sq.m.
Floors 14 - 20 up to 120,000 Sq.m.
Floors 07 - 13 up to 110, 000 Sq.m.
It is now possible to determine how much loan size is easily available on a unit in each of these buildings.
Let’s assume a unit on the 29th Floor (as indicated on the Chanote) is of a size 125.60 Sq.m. (again as indicated on the Chanote) and is facing the Royal Bangkok Sports Club. Our example is either the unit a buyer is looking to purchase OR a unit that an owner has paid already in full and would like some cash out or cash back to spend elsewhere.
The indicative loan size available based on the above figures and scenario would be 125.60 x 160,000 = THB 20,000,000. This is most likely going to be the pre-approved loan size easily available within a matter of 2-4 weeks.
How is the Finance so Easy to Obtain?
As stated, buildings are pre-approved with a cap of 60% loan to value. This means that an official lender valuation will also need to be obtained and the maximum loan size would be capped no more than 60% which means a client would need to have paid at-least 40% deposit or down payment to own the property. A finance company could take the opinion that the risk of a client defaulting and then eventually not being able to obtain the original loan size through a forced sale on the property is minimal. It could also be of the opinion that if a buyer has paid 40% deposit of down payment, this is a reasonable investment to make for most individuals and a borrower would not wish to walk away from this figure and hence, maintain a credit record.
That being said, a lender will of course still require all the usual evidence a bank would typically ask for such as:
Application Form
Passport / ID
Bank Statements
Credit Report
Proof of Income
Etc.
How do I obtain a Personalised Loan Quotation including Repayment Schedule?
As no application is the same, a basic amount of information would be needed to provide a personailsed loan quote. This would typically include the following by email:
Fees Payable
Repayment Schedule
List of Required Documents
In order to receive the personalised loan quote, you may notice in each text box, a link to an online application form. By clicking the link and completing the basic information, a full loan repayment schedule can be emailed along with list of required documents.
Alternatively, email one of the addresses mentioned and an application form could be emailed.
Notes
-- The above set of guidelines are an example only and to be used as a guideline for estimate loan amounts. A lenders final discretion will be required and will only be obtained upon full application.
-- The condominium used as collateral would be registered at the land office under a Mortgage structure therefore is considered as a secured loan.
For further questions or queries regarding the “Thailand Condo Re/Finance Map”, please feel free to email enquiry@globalmortgagefinance.com OR stuart@mbkg.co.th and either shall be happy to assist.