7 Types of Housing Loan
One service that every financial institutions must have is service of every kind of loan. One of those is housing loan for those who want their own house or want to transform house to capital. Housing loan tends to lend maximum amount not exceed 80% of appraised price by banks tend to consider loan differently by property type.
Each sort will has condition and approval as well as interest rate which different. By criteria of Kasakornthai Bank as follow:1. Loans granted on up to 80 percent of the sale value of the land and house, townhouse , or its appraised price (whichever is lower). Installment term is up to 30 years. 2. For condominiums priced at more than THB 500,000 per unit, loans granted at not exceeding 80 percent of the unit purchase price or appraised value (whichever is lower), under the installment term, as below:
• Maximum term, not exceeding 25 years if the unit purchase price is less than THB 1 million.
• Maximum term, not exceeding 30 years if the unit purchase price is THB 1 million or more. 3. For commercial buildings , loans granted up to 80 percent of their purchase price and appraised price (whichever is lower). The installment term can be up to 30 years. 4. If you build a home on your own land, mortgage loans are granted at not exceeding 100 percent of home construction cost but not exceeding 80 percent of appraised value of the land and building. The installment term is not longer than 30 years. 5. Loan for remodeling or renovating a house shall not exceed 100 percent of the appraised value for the extended part, and not exceed 80 percent of the appraised value of the land and house. The maximum loan must not exceed THB5 million, and the installment term must not exceed 10 years. 6. The Bank accepts housing loan refinancing of loans from other banks or financial institutions and establishes loan limits and the maximum installment payment period according to the above types of collateral. Asking for more detail at Kasikornthai Bank in every branches or K-Home Loan Delivery 0 2888 8888 press 5 press 1 press 7 7. The loan criteria for buying land must meet with the following objectives:
7.1 To buy a vacant plot of land only in housing projects that the Bank supports.
7.2 To buy a vacant plot of land adjacent to an existing residence for the purpose of extending one’s own home, etc. Loan criteria for 7.1) and 7.2) are:
1) The loan shall not exceed 70 percent of the land’s appraised value and not exceed a maximum of THB5 million
2) The area shall not exceed 3 rai.
3) The maximum installment payment term shall not exceed 10 years.
7.3 To buy land from recovered debt settlements of KBank.
7.4 To buy land from auctions of the Legal Execution Department (mortgaged assets with KBank).
7.5 To buy land as foreclosed property held by KBank and or an asset management company established by KBank. Loan criteria for 7.3 and 7.5 are:
1) The loan shall not exceed 90 percent of trading price and not exceed 85 percent of the land’s appraised value.
2) The maximum amount of the loan must not exceed THB10 million, but is unlimited in area of land to be purchased.
3) The maximum installment payment term shall not exceed 10 years
(Information from Kasikronthai Bank at 18 June 2014)
article by : TerraBKK.com
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