Having a home is a great gift. For beginners looking to apply for a loan, what are some financial terms to know? to understand more
10 Vocabulary You Must Know! real estate for beginners
1. Down Payment
is the amount that must be paid after booking and contract completion The proportion is about 10-20% of the full price.
is the amount of money that the financial institution Generally, banks will approve a loan amount between 80-95%, however, the amount of credit depends on each bank. Loan applicants should study the details of each bank thoroughly.
is the amount that must be paid in installments each month Calculated from the loan amount interest rate and loan period
Is the loan interest rate that is specified as a specific number throughout the loan term. or during a specified time does not go up or down according to economic conditions The advantage of a fixed interest rate is that you do not have to worry that the loan payment will increase. And helps borrowers to plan their own finances accurately.
is the loan interest rate that will change according to the announcement of the financial institution. which will adjust up and down according to economic conditions The rate of change in interest depends on each bank.
6.MLR (Minimum Lending Rate) or (Minimum Loan Rate)
is the interest rate that the bank collects from its prime large customers. Types of term loans, such as having a good financial history Sufficient collateral This type of interest rate is mostly used on long-term loans with a fixed term.
7.MRR (Minimum Retail Rate)
is the loan interest rate that the bank collects from prime retail customers such as personal loans. housing loans, etc.
8.LTV (Loan to Value)
Is the ratio of credit to buy a house compared to the value of the house, for example, a house with a price of 2,000,000 baht, the bank lends the amount of 1,800,000 baht, meaning that the LTV ratio is 90%. have a higher amount of savings The ability to buy a house will decrease.
9.DSCRDSCR (Debt Service Coverage Ratio)
is the ratio of income to debt payments. which the bank will take into consideration to release the loan to the borrower by comparing the proportions with the formula (Monthly income ÷ installment amount per installment) which the appropriate ratio is 3.0 or more, or income is 3 times the debt burden. If your DSCR is below 3.0, it means that you have too much installment debt. or the chances of requesting a loan will be less
10. Mortgage fee
A mortgage is a type of loan agreement in which the “mortgagor” uses immovable property as permitted by law, such as title deeds, land, houses, etc., registered with the “mortgagor” as collateral for debt repayment. The mortgage contract must be made in the presence of the Department of Lands only. By stating clearly that the mortgagor loan is the amount of money. And what is the property that is mortgaged?
home loan application like a jigsaw puzzle that must be carefully planned understand each subject And finally, it will be a great gift that is worth it.
for Thai people abroad About having real estate in Thailand It can be a big, worrying issue, especially for those who have never applied for a loan before. This is to gain access to real estate ownership in Thailand. It is easy for foreign beginners. by experts for Thai people abroad, especially You can inquire via line: @sungateway
Data source: https://blog.ghbank.co.th/real-estate-vocabularies/