What is a home equity loan? If exchanged for money, will the house still be there? So what do you have to do in order to get the money to use without the house being sold anywhere?
These questions can be solved with interesting information for those who want to apply for a home loan in exchange for money. But even if you don't need a loan right now Knowing about these types of loans may be useful in the future. Because if you need a sum of money to expand your business or use it in an emergency when Will be able to prepare documents and apply for a loan in a timely manner as needed
What is a home equity loan?
The home loan is a money exchange. Loan agreement with a type of collateral which is designed for burden-free homeowners who want to spend a lump sum by taking the house into a mortgage with the bank and then repay the loan in accordance with the agreed period
Who is a home equity loan suitable for?
1. People who have real estate such as houses, townhouses, condos, commercial buildings or vacant land free of burden (Payment is over) but want to get a lump sum to use (Some banks offer home loans in exchange for real estate that hasn't been fully paid off as well.)
2. People who want to consolidate all debts together, such as credit card debt. or credit card debt and then pay installments with a home loan in exchange for just money instead This is because home loans have a lower interest rate than personal loans.
3. People who need capital to do business
Loan amount to be received
In the event that the borrower wants to use the house in exchange for the full price of the house The borrower will receive a loan amount of approximately 80-90% of the appraised value only. The approval band will depend on the consideration of each bank.
However, the borrower can ask for a credit line that is less than the approved limit, for example, the borrower's house is appraised for 3 million baht, it will get 2.4 baht for the house, but needs only 4 hundred thousand baht. The borrower can apply for a loan as much as they need. can be used
Some banks still have the opportunity to choose to get a long term loan (LT) or with a fixed repayment period like a home loan. or choose to receive Overdraft (O/D) loans can be obtained by opening the O/D credit line. If you don't use it, you don't have to pay interest. Or you can choose to receive both types of limits.
interest to be paid
The highlight of the home loan for money is that it charges interest at the same effective rate as for new homes. But the interest rate will be higher. which is generally at the level of 5% per year or more, or a slight reduction from the bank's MRR interest rate announcement. But overall, the interest rate is still considerably lower than that of an unsecured personal loan.
Length of time to relax
In addition to calculating the same interest The installment period for a home equity loan is the same as New home loans as well, with installments up to 30 years, but if you feel that it's too long Some banks also offer the opportunity for home loans and short-term repayments. But the interest rate is different from the long term installment as well.
Procedure for applying for a home loan in exchange for money
1. Get ready
Preparing for a home equity loan is the same as applying for any type of loan. that the borrower must have a good financial history before applying for a loan If the history is lost Banks also have the opportunity to decline. while preparing to make good financial credit Please study the details of each bank's loan application. before deciding which bank is best for you
2. Submit loan application documents
Borrowers must prepare various documents before submitting to the bank for credit consideration. The required documents are the same as applying for a general loan. which can be divided into 3 groups as follows:
- Documents proving identity such as a copy of ID card Copy of house registration and a copy of the name change certificate (if any)
- Proof of income, including salary certificate salary slip Account statement for the past 6 months, etc.
- Documents confirming securities such as a copy of the title deed and a photograph of the home used to apply for a loan
3. Appraisal of securities
After submitting the loan application with the bank completed The bank will send a representative to assess the condition of the house for which the loan is requested. to be considered for approval of the loan amount according to the value of the assets used as collateral At this stage, a home appraisal fee may be charged or not. depending on the promotion of each bank
4. Bank for approval
When the bank receives complete information It will take about 1-2 weeks to consider and inform the borrower of the approval result along with the interest rate. At this stage, the borrower will be the one who will accept the loan amount. Or will reduce the amount received to just enough with the money needed Or you can choose other banks that offer lower interest rates.
5. Contract and mortgage
After agreeing to accept credit line and interest rate It will enter the process of making a loan agreement with the bank. The bank will make an appointment with the borrower to sign the contract. Then perform a land mortgage contract at the land office near the borrower's house. Then the borrower will receive the money requested for the loan. Finishing the process
The cost of applying for a home loan in exchange for money
Even if it is a loan request to receive money to use However, home equity loans also have expenses that the borrower may have to pay to the bank or land office before receiving the money as follows:
- Mortgage fee 1% of the loan amount
- Stamp duty 0.05% of the loan amount
- Securities appraisal
- loan application fee
- fire insurance premiums
- Life insurance premiums for credit protection (if voluntarily)
However, some banks offer expense exemptions to borrowers, which may include the highest mortgage cost of all. But if you have to pay, don't worry. Because most banks tend to deduct these expenses before handing over the money to the borrower.
Including promotions for home loans to exchange money from various banks
Today's home equity loans are getting more and more attention from consumers. Each bank has different promotions for home loan for money as follows:
1. Krung Thai Bank Home Loans
– Maximum loan amount 20 million baht
– Easy to borrow, just mortgage a house, condominium, commercial building or land to the bank.
– No payroll account through Krung Thai can be borrowed
– Loan term up to 30 years
– interest rate and installment period
In this regard, the collateral must be free from the burden of the mortgage, except in the case of refinance from other financial institutions.
2. Home loans can help. Kasikorn Bank
want a sum of money Just having a home free of burden Applying for a home loan can help. Easy to borrow. Fast approval. High limit. No need to be the owner. You can borrow. Get an additional gift voucher worth 3,000 baht.
- People with regular income must have income of 50,000 baht / month or more
– Entrepreneur / self-employed earning 70,000 baht per month or more
– Customers must have life insurance to protect their home loans. by being approved and not canceling or changing life insurance premiums To protect the home loan less than the conditions set after the mortgage
with a minimum loan protection amount of 70% or more of the home loan amount and choose a protection period of 100% of the loan term Or have an insurance fund to cover 100% of the home loan amount and choose a minimum protection period of 70% of the loan term.
– Applicable to all types of collateral for free housing (houses, condos, townhouses, commercial buildings) except vacant land
– The maximum loan amount is not more than 90% of the appraised value of the collateral.
3. Multipurpose Loan CIMB Thai Bank
- Source of funds for people with title deeds
– Must have a credit history for at least 2 years
– Credit limit up to 20 million baht (including life insurance premiums) and fire insurance premiums)
– The credit line ratio to the collateral value is not more than 80% of the appraised value.
– Apply from today-30 December 2022
4. Home loan is My Home My Cash money, Siam Commercial Bank.
– Credit limit up to 20 million baht (only for commercial buildings, the credit limit is not over 10 million baht)
- Easy installment for up to 30 years
– Know the preliminary approval results in 1 business day
– Interest rate for prime retail customers (Minimum Retail Rate) equal to 5.995% announced on August 9, 2021
– Effective Interest Rate is calculated from the loan amount of 1 million baht with a contract term of 20 years.
5. iBank home money exchange loans
The Islamic Bank of Thailand (iBank) enhances daily financial liquidity with loans. "Money Exchange House" provides a maximum credit line of 5 million baht, with an initial profit margin of 4.90% per year. Can be used to refinance credit card debt and personal loans from other financial institutions.
Provides financial opportunities for people with debt-free housing collateral. Single-detached houses, twin houses, townhouses, townhomes, condominiums in buildings, commercial buildings, and home offices respond to those who face the lack of liquidity in the era of the economic downturn.
Or, the money can be used to refinance credit card debt or personal loans from other financial institutions with higher rates. or to pay the Takaful Contribution (MRTA)
Provide a multi-purpose credit line with collateral up to 5 million baht per person The profit margin starts at 4.90% per annum (SPRL – 2.50% per annum throughout the contract period, currently SPRL = 7.40 % per annum).
The repayment period is up to 20 years. The repayment period depends on the age of the loan applicant. which people with regular income must not be more than 60 years old for specific practitioners and private entrepreneurs under 70 years of age
Interested parties can contact iBank. all branches nationwide From today-31 December 2022 or ask for more information at Call center 1302
Although a home equity loan is a very time consuming process. There are also expenses that may be incurred. and has a higher interest rate than a new home loan But swapping your home for money is still a much better option than getting a personal loan.
Therefore, if there is a need for a sum of money when Please consider carefully before making a decision. Because the source of low interest loans, long installments, may be close in the form of a house that lives in right now.
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