In recent years, Thai real estate has gradually become a hot spot for overseas real estate investment due to factors such as fine decoration, beautiful environment, complete facilities and high rental income. However, while paying attention to real estate information, people also focus on how to buy a house in Thailand. On the question of loan? So let’s answer it todayIs there interest in buying a house with a loan in Thailand? Is the interest rate on a house loan high in Thailand?
The interest rate for buying a house in Thailand depends on the amount of the loan
- 5.25% in the first year (fixed)
- 5.75% in the second year (fixed)
- The third year and above: SIBOR+6.0%
Generally, it is 50% of the real estate appraisal price or the purchase price (whichever is smaller), and the starting amount of the loan is 1 million baht. In other words, the total price of the house needs to be more than 2 million baht.
Home loan interest rates of various commercial banks in Thailand, latest update January 2019
|bank||lowest interest rate||Maximum loan amount of each bank (first 3 years)|
|Bangkok Bank (BL)||3.04%||95% of the purchase price and not more than 100% of the mortgage assessment (long-term working staff with monthly income of 200,000 baht or more can apply)|
|Ayutthaya Bank (BAY)||3.15%||100% of the assessed value of the house, priced at 1 million baht or more|
|TMB Bank (TB)||3.50%||100% of the assessed value of the house, priced at 1 million baht or more|
|Kasikorn Bank (K Bank)||3.95%||100% of the house’s appraised value, (the bank requires real estate companies that apply for 3 supplementary products as conditions)|
|Government Savings Bank (GSB)||4.08%||85% of the home’s appraised value|
|Krung Thai Bank (KTB)||4.20%||85% of the home’s appraised value|
|Siam Commercial Bank (SCB)||The interest rate given to each project varies according to the confirmation of the bank||100% of the assessed value of the house (designated developer) and 90% of the assessed value of the house (for general projects)|
Among the top three banks this time are Ayutthaya Bank, Bangkok Bank and Kasikorn Bank by issuing loans of up to 90-100% of the assessed value.
Tip: Most home loan rates don’t change very often, about a quarter or half a year at a time. Mortgage rate adjustments depend on different factors between each bank.
Introduction to MRR MLR MOR:
- MLR (Minimum Lending Rate)is the interest rate charged by commercial banks from customers. It is a term loan type, such as having a good financial flow report and sufficient collateral. Applicable to long-term loans with fixed terms, such as business loans, etc.
- MOR (Minimum Overdraft Rate)is the interest rate charged by commercial banks from top customers in the overdraft category.
- MRR (Minimum Retail Price)It is the interest rate charged by commercial banks from customers at retail prices of products, such as personal loans, mortgages, credit card loans, etc.
Thailand Commercial Bank Loan MRR Standard Interest Rate
|bank||MRR||Percent (%) change compared to 2018|
|Bangkok Bank (BL)||7.1250||Stablize|
|Krung Thai Bank (KTB)||7.1200||Stablize|
|Kasikorn Bank (K Bank)||7.1200||Stablize|
|Siam Commercial Bank (SCB)||7.3700||Stablize|
|Ayutthaya Bank (BAY)||7.2000||Stablize|
|Bank of Thailand||7.1750||Stablize|
|U0B United Overseas Bank (U0B)||7.7500||Stablize|
|CIBM Thai Bank (CIBM)||7.7500||Stablize|
|LH Bank (Land and Hounos)||7.7500||Stablize|
|Industrial and Commercial Bank of China (Thailand) (ICBC)||8.1250||Stablize|
|Bank of China (Thailand) (BOC)||7.7500||Stablize|
Referring to the MRR, the Bank of Thailand sets it at 7% in the loan details, indicating that the borrower must pay interest at the following rates: Year 1 = 5% interest, Year 2 = MRR-0.25%, Year 3 = MRR- 0.25%.
Assuming the principal amount is 1,000,000 baht at the above rate
1st year interest payment = 1,000,000 x 5% = 50,000 baht
Year 2 = 1,000,000 x 6.75% (MRR is set at 7% minus 0.25%) = 65,000 THB,
Year 3 = 1,000,000 x 6.75% (MRR is set at 7% minus 0.25%) = 65,000 Baht,
So the total interest to be paid for 3 years is THB 180,000
The calculation of principal and interest for the above example is only a preliminary calculation for the first 3 years. If you want to calculate the installment operation of the housing loan during the entire loan period, you can check the interest rate table on the official website of each bank for calculation.
If you want to go to Thailand to invest and buy a house, you plan to buy a new project or a project for resale, some projects can apply for a loan, and you can follow the above operations. At present, many developers cooperate with local banks to provide low-interest credit loans to customers who buy houses.
How much is the loan interest rate for buying a house in Thailand (list of loan interest rates of various banks in Thailand)That’s all for today. If you don’t know much about it and want to go to Thailand to buy a house loan, you can directly consult the online customer service!Disclaimer: All article content, pictures, videos, etc. on this site are compiled from user submissions and reprinted from the Internet and abstracts. They do not represent the views of this site and do not assume relevant legal responsibilities. The copyrights belong to their original authors or their publishers. If you find any content suspected of plagiarism/infringement/violation of laws and regulations on this site, which infringes your rights, please contact the webmaster online. Once verified, this site will be deleted immediately.