* Freehold Landed Property (Land & Villa)
* Leasehold Landed Property (Land & Villa
In Thailand, a foreigner usually purchases property in cash because under Thai law, financial institutions will generally not lend money to foreigners to buy property in the Kingdom. However, a loan for the purpose of purchasing property in Thailand may be granted to a non-Thai from the Bangkok Bank, Singapore branch. The conditions of financing property with Bangkok Bank are as follows:
1. A loan granted shall not exceed 70% of the total purchase price of property.
2. The Bank will hold legal mortgage over the property to be financed.
3. The loan tenure shall not exceed a period of ten years.
4. A loan shall be denominated in SGD (Singapore Dollar), USD, Japan Yen or EURO.
5. Interest rate varies, depending on the required currency of a loan. The current annual rates are 3.35% for Japanese Yen and 6.75% for USD; however, additional interest may be added. For instance, if a loan is agreed in USD, an annual interest shall be 6.75% plus 1.25% because a loan is paid in a currency other than that of the Singapore dollar. Please note that a loan is not available in Thai Baht.
6. Repayment of the principal, plus any interest, shall be made in monthly payments from date of the disbursement of loan.
7. Loan shall be drawdown only upon payment by the borrower of the difference between the purchase price and the loan amount, subject to completion of all documentations.
8. A flat rate of 1.5% of the approved loan shall be as the prepayment.
9. A processing fee is S$5,000 shall be paid upon acceptance of the bank’s letter of offer and S$2,000 or equivalent shall be refunded upon drawdown of the loan.
10. The borrower is to be responsible for all expenses including, but not limited to, legal and mortgage costs, valuation fee, and premium fire insurance.