Frequently Asked Questions
Before you apply for loans
- What can I purchase with a Bualuang home loan?
You can take out a Bualuang Home Loan to purchase a house, townhouse, commercial building, condominium, piece of land, or to refinance a housing loan held with another financial institution.
- What is the maximum amount can I borrow?
Maximum borrowing amounts vary depending on customers’ personal circumstances, however generally you can borrow up to 70-100% of the value of property/land you’re purchasing with the loan.
- How can I pay my mortgage installments?
You have two options: - Monthly step installments - Adjustable installment amount within first 3 years i.e. at the beginning of loan agreement, borrower pays less monthly amount at low and flat interest rates. In the event of floating rate, installment amount will be a bit higher.
- Flat-rate repayments – each installment is the same over the period of your loan.
- How do I apply?
You can apply at any Bangkok Bank branch, or you can also get started with your application online.
- How long will it take for my loan to be approved?
Once you have submitted your loan application together with all documents needed, our Appraisal & Mortgage Center will make an appointment to visit your property. We will then process your loan application. It normally takes around 3-10 working days from submitting your loan application until you receive your loan.
- How does the bank appraise the value of a property?
We base our valuations on land sale prices as recorded by the Land Department, as well as the market prices of real estate.
- Can I borrow money to build a house on land I already own?
Yes. The bank will consider granting the credit line up to 90% of the appraisal value of land and buildings. The borrower must prepare loan application documents such as blueprints, your construction permit and your contract with the builder, specifying the payment installments.
Conditions
- What is the bank's criteria when it comes to considering a loan application?
The bank will consider the purpose of borrowing, according to the type of housing and the ability to make the repayments, based on career, income and collateral value such as
- Type of housing - bare land, land with residential property, including detached houses, townhouses, commercial buildings, condominiums or to build a new residential property as well as refinance an existing loan on a property
- Qualifications of borrower – individual at 20 years of age or above with regular income or being a business owner
- Having a good credit record
- Credit limit - up to 90% of the property appraisal value
- Repayment term - between 5 to 30 years (up to 35 years for permanent employees)
- Your age, together with the loan tenure, is no more than 65 years
- If I don't have sufficient income, can I still get a mortgage?
You can still get a mortgage, however you will need to engage a loan guarantor or co-borrower who meets the income requirements.
- Are there any expenses and if so what are they?
There are a couple of standard costs associated with taking out a loan:- Appraisal fee – a minimum 3,000 baht (excluding VAT). Fee waiver for loan management. The fees depend on the collateral type, size and amount announced by the bank on the website or at branches.
- Penalty fee of 3.0% of the loan amount when refinancing with another financial institution during the first three years
- Fire insurance premiums
- Home 1st insurance premiums (optional)
- Can I borrow to buy a house if I don't have a proper land title?
Yes, if you have Certificate of use, called “Nor Sor 3” which can demonstrate that you are the customary owner of the land.
Co-borrowers
- Who can be a co-borrower?
The co-borrower must have a direct relationship with the borrower such as husband or wife, blood brother or sister, a parent, son or daughter. Number of co-borrowers not limited. Every co-borrower must own the property together.
- If there are several co-owners of a piece of land, can one person take out a loan to build a house?
Yes, however ownership of the property must be transferred to one borrower only.
- Can my live-in boyfriend or girlfriend be my co-borrower?
No. You must be legally married for a partner to be a co-borrower. If you got married without marriage certificate, borrowing is doable by providing other documents such as birth certificate with parents’ names identified or housing registration document showing you are together.
Interest Rates
- What mortgage options do I have?
There are two periods of mortgages: teaser period and floating period.
- Interest rate - Teaser period means special interest rate offering in short term about 1-3 years that could be flat rate or MRR.
- Interest rate - Post Teaser period which banks will normally set at floating rate which equals to MRR and may be different depending on each bank. This rate can be changed through economics and monetary environment such as liquidity, cost and competition.
- How do I choose which option is best for me?
Lowest flat rate in the first year may not always be the best choices because at the end of the period interest rate will be adjust up referring to floating interest rate MRR. This MRR will be up or down depends on changeable economics. Therefore, you’d better compare the rate from 3 years average rate due to your 3 year installment with the bank before you are able to refinance without penalty.
Loan Repayments
- How can I pay my monthly mortgage payments?
You have several options. You can make monthly installments across the counter at any branch or
through Bualuang Direct Debit – we deduct installments from your savings or current accounts automatically on the due date.
- If I do not put money into my account before the due date for my loan installment, what should I do?
You should deposit the money into your account on the following day and inform your home branch because our auto-debit system will check your account every day after the due date.
- Can I change the terms of my loan afterwards and what should I do? - for example can I get an extension to the term?
If you wish to change the terms of your loan, you should contact the branch where you obtained your mortgage and make a new application.
- Make a new application and submit the required documents
- Pay a new appraisal fee if it is more than a year since you originally applied for your loan
Re-financing
- Can I take out a loan from Bangkok Bank to refinance a mortgage from another financial institution?
Yes. Normally, the bank will give you a loan equal to your outstanding loan balance. You can request for credit limit of additional multi-purpose loan either normal loan or overdraft loan.
If I refinance a mortgage from another financial institution, what fee charges will I incur?
In case of refinancing a mortgage from another financial institution, fee charges incurred should be considered as follows:
- Refinancing bank: 3,000 baht for appraisal fee (excludes VAT), stamp duty costs 0.05% of credit limit (not over 10,000 baht)
- Current bank: penalty for refinancing a mortgage before 3 years (3% of outstanding debt)
- Expenses for Land Department: mortgage fee costs 1% of credit limit but not over 200,000 baht (except for condominium - no maximum fee)
- How do I proceed to refinance a mortgage from another financial institution?
You have to submit additional documents, namely the loan contract with other financial institution, repayment receipts for the last six months and the mortgage contract.
Others
- Who is responsible for paying the mortgage agreement registration fee at the Land Department?
As the borrower you are responsible for the mortgage agreement registration fee. The fee is equivalent to 1% of the mortgage amount for a housing project.
- What documents do I need to take when I register my mortgage?
You will need to bring the following documents:
- ID Card
- Housing registration document
- Marriage, divorce or death certificate
- Consent letter from your spouse
- Land deed (original)
- Name registration certificate (if you have changed your name or surname)
- What kinds of documents should I bring to the bank when I want to redeem my mortgage?
- In case of payment completion: redemption request can be submitted every branch and the process will be completed not more than 15 days.
- In case of having outstanding debt: submit the request at your home branch and the process will be completed not more than 25 days.
- Payment made to Bangkok Bank as the same amount as outstanding on date of redemption (check with your home branch)
- Redemption before 3 years (refinancing): additional charge fee for loan payment ahead of schedule costs 3% of outstanding.
You will need to bring the following documents: - ID Card and a copy
- Housing registration document and a copy
- Name registration certificate (if you have changed your name or surname)
- If I want to change my contact details, what should I do?
You can change your contact details at the branch where you applied for your loan.
- Can a juristic person apply for a home loan or personal loan?
No, but business or SME loans can be applied. However, the criteria and conditions are different from applying for a home loan
- What conditions apply to a loan to buy land?
Land must be bought for the purpose of building a house only and must be in a suitable location. The land area must not exceed 1,600 square meters.
- If I want to apply for a loan at Bangkok Bank to buy a house that is mortgaged with another bank, what should I do?
You have to prepare a contract of sale and a copy of the land title showing the name of the current owner. The redemption of the mortgage with another bank is the responsibility of the seller.
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