Mortgages:

It is now possible for foreign non-residents to obtain bank finance when purchasing a freehold property in Thailand. We have listed below the terms and conditions for obtaining a mortgage and Zen Properties are happy to assist you through the application process.

• Loan Amount up to 70% of the purchase price
• Maximum loan amount - S$1,000,000 or equivalent amount
• Minimum loan amount - S$100,000 or equivalent amount

Please note: Withdrawal amount shall be the lowest of:

1. amount as per approved limit
2. up to 70% of purchase price of property, when converted at the banks exchange rate prevailing upon withdrawl
3. 70% of the appraised value upon completion by the banks appointed valuer.

Security:

• Legal mortgage of property to be financed
• Pledge of Borrower's shares (if borrower is a corporation)
• Personal Guarantee

Length of Loan:

• Maximum 10 years

Currency

• The loan shall be denominated in SGD, USD or any other currency acceptable to the bank

Interest Rate (subject to changes at the Bank's discretion) - Loan in SGD - Bangkok Bank's prime lending rate per annum (currently 6%). Loan in USD - US prime + 0.5% per annum (currently 6.75%+0.5 = 7.25%)

Repayment

• Repayment of principal and interest is by monthly instalment and to commence one month from date of disbursement of loan.

Withdrawal

• The loan shall be withdrawn only upon payment by the borrower of the difference between the purchase price and the loan amount, subject to completion of loan documents and fulfillment of the conditions precedent.

Prepayment

• Prepayment of the loan allowed subject to payment of 1.5% flat on the loan amount to be prepaid.

Processing Fee

• Processing fee of S$5,000 or equivalent amount is payable upon acceptance of the banks letter and S$2,000 or equivalent amount shall be refunded upon withdrawal of the loan

Expenses

• All expenses such as legal/mortgage costs, valuation fee and fire insurance premium etc shall be payable by the borrower.

Documents Required

1. Completed Mortgage Loan Application Form
2. Copy of indentification card (front & back)/passport
3. Signed copy of Sales & Purchase Agreement
4. Employers letter addressed to the Bangkok Bank Public Co Ltd (Singapore) confirming position, years of service and remuneration.
5. Bank's reference letter addressed to the Bangkok Bank Public Co Ltd (Singapore) confirming banking relationshop, conduct/type of account and size of loan/deposit with the bank.
6. The last 6 months bank statements
7. The last 2 years Income Tax Return.
8. The last 2 years Balance Sheet & Profit & Loss Statements (for self-employed borrower)
9. Credit Bureau Report from country of residence
10. Others upon request

Please note: Approval of loan subject to evaluation of applicant's financial standing and repayment ability.

Zen Properties 18 years hands on experience of the local real estate market on Koh Samui Thailand