Question: Can I Secure A Loan Today When Buying Uncompleted Properties?
For foreigners, we are often offered a deferred payment scheme by developers when purchasing an uncompleted condominium. Deferred payment scheme refers to the buyer first being required to make a downpayment (often 20% to 30%) and the remaining amount (70% to 80%) to be payable nearer to completion of the condominium.
In Bangkok, subject to credit assessment, foreigners are able to get a mortgage loan from some of the financial institutions in Bangkok.
We are often asked by buyers if they can first confirm their eligibility to take up property loan before committing to the purchase.
The straight answer is no. Let me explain why.
The loan can only be applied at the point when you are required to pay the remaining amount of the property value. Timeline wise, for a brand new condo, this will only happen 2 to 3 years down the road.
In other words, banks will only entertain your application for the mortgage loan nearer to completion of the property or when this final payment is due.
You are required to pay the upfront downpayment via cash only.
As for the applicable interest rates and terms, it will be as per the bank’s conditions 2 to 3 years down the road. Whatever are the terms of mortgage and interest rate today will not apply to you. Not unless you are purchasing a completed condominium today.