Mortgage
Mortgage
Not for me, for the in-laws. Small one, some $23K.
- What is (about) the interest rate on mortgages ?
- Up to which percentage of the value of the house, a mortgage is given ? 50%, 70% ?
- What is the payback period ? 5, 10, 20 years ?
- Is it based on linear or annuity ? Just like with personal loans: Linear ?
- The guarantee / pledge / security on this, does the bank take the house ownership papers ?
- Who thumbs for this ? House owner or the whole family ?
Thx. V12.
- What is (about) the interest rate on mortgages ?
- Up to which percentage of the value of the house, a mortgage is given ? 50%, 70% ?
- What is the payback period ? 5, 10, 20 years ?
- Is it based on linear or annuity ? Just like with personal loans: Linear ?
- The guarantee / pledge / security on this, does the bank take the house ownership papers ?
- Who thumbs for this ? House owner or the whole family ?
Thx. V12.
I am far from an expert, but my basic understanding is near 100% of the loan value is secured, and the interest rate is somewhere around 9-12%. If, the land has hard title (a must if you want to borrow off it), and you have another property to put up...........should be no problem.
The problem is the combination of high interest rate and the inability to leverage more money than you can secure.
The problem is the combination of high interest rate and the inability to leverage more money than you can secure.
-
- Damn, I just saw my Internet Bill !
- Reactions: 3
- Posts: 4420
- Joined: Sun Dec 09, 2012 3:04 pm
Also no expert but I've asked ACLEDA twice over the years and the latest time I was told something like 18% if you have no collateral (besides the house, obviously) and only put down a small percentage. 13% if you do have collateral. Terms vary but they are generally short. Best bet would be to go visit a few banks and ask them. They usually give you the info straight up and within a few mins you'll have all you need.
I agree, though I am currently far away and not back in Cambodia within another 2-3 months and have to direct the in-laws what to do, to get rid of loans with extreme high interest (>3% per month). The sooner the better, these loans are going to ruin them.LexusSchmexus wrote:.... Best bet would be to go visit a few banks and ask them. They usually give you the info straight up and within a few mins you'll have all you need.
My wife does bit of money lending in the village and usually gets 5% a month. 3% is a good rate on the informal lending market...............but still way too high for anything but a short term bridge loan.
Yep, and certainly not the type of financing for a house, where a long term mortgage is far more appropriate.
A) Because the interest is far to high given the security of the house and
B) Because the loan has to be payed off in less then 2 years.
They aren't dirt poor, the whole family helps, some have a reasonable income for Cambodians, but this type of loan is to much to handle properly.
Oh, and they are proud, so only come to me, when they really need help.
A) Because the interest is far to high given the security of the house and
B) Because the loan has to be payed off in less then 2 years.
They aren't dirt poor, the whole family helps, some have a reasonable income for Cambodians, but this type of loan is to much to handle properly.
Oh, and they are proud, so only come to me, when they really need help.
-
- Damn, I just saw my Internet Bill !
- Reactions: 3
- Posts: 4420
- Joined: Sun Dec 09, 2012 3:04 pm
Hey, I knew I had written some info down about this but couldn't find it. Stumbled upon it yesterday evening.
From ACLEDA (a few months ago):
13% mortgage, ranging from 2-7 year terms. It's also ok to pay back faster if you have to means to.
Business loans are 10% for 2-4 years.
Obviously, I'm sure the interest rate will vary depending on their means to repay, collateral and so on... I I recall, the rate also changes depending on the legth of your term. But hopefully it helps as a rough estimate. I assume most banks offer similar rates.
From ACLEDA (a few months ago):
13% mortgage, ranging from 2-7 year terms. It's also ok to pay back faster if you have to means to.
Business loans are 10% for 2-4 years.
Obviously, I'm sure the interest rate will vary depending on their means to repay, collateral and so on... I I recall, the rate also changes depending on the legth of your term. But hopefully it helps as a rough estimate. I assume most banks offer similar rates.
-
- 20,000 Posts; I need professional help !
- Reactions: 2
- Posts: 22651
- Joined: Fri Jul 15, 2005 2:31 pm
- Location: Space, maaaan
What I love about ACLEDA is that you can pay in full early without penalty. We just paid the balance on a $2000 loan this week in order to secure a new $4000 loan to buy a car. It's a 4-year loan that we should be able to pay back by the end of the year.LexusSchmexus wrote:Hey, I knew I had written some info down about this but couldn't find it. Stumbled upon it yesterday evening.
From ACLEDA (a few months ago):
13% mortgage, ranging from 2-7 year terms. It's also ok to pay back faster if you have to means to.
Business loans are 10% for 2-4 years.
Obviously, I'm sure the interest rate will vary depending on their means to repay, collateral and so on... I I recall, the rate also changes depending on the legth of your term. But hopefully it helps as a rough estimate. I assume most banks offer similar rates.
I came, I argued, I'm out
-
- Damn, I just saw my Internet Bill !
- Reactions: 3
- Posts: 4420
- Joined: Sun Dec 09, 2012 3:04 pm
Yeah, I don't know about other banks but I made sure to ask them that question as if you suddenly have the means to pay back large chunks, it's a huge bonus. I've used low interest loans to leverage myself several times back in the west (3%, 6% LOC with no collateral, who can argue with that?). Then if the rates go up you just pay back ASAP. Problem is here you really shouldn't take out a big loan unless you really need to (and have the means to pay back). Rates are cut-throat so you can't really borrow as an investment and have to work hard to pay back fast. If I remember correctly, around 3-5 years ago it was 18% so the rates have gone down. But having the option of not being locked in and paying back faster reduces your exposure to unnecessary interest. Is ACLEDA the only bank who gives this option?
Loans in Cambodia have been a problem - expensive money lenders, fraud and plain exploitation.....v12 wrote:Not for me, for the in-laws. Small one, some $23K.
- What is (about) the interest rate on mortgages ?
- Up to which percentage of the value of the house, a mortgage is given ? 50%, 70% ?
- What is the payback period ? 5, 10, 20 years ?
- Is it based on linear or annuity ? Just like with personal loans: Linear ?
- The guarantee / pledge / security on this, does the bank take the house ownership papers ?
- Who thumbs for this ? House owner or the whole family ?
Thx. V12.
See these sites:
http://www.ababank.net/en/house_loan.php
http://www.acledabank.com.kh/kh/eng/ps_ ... ngloan.php
Interest rates are higher than overseas.....with low LVR.
- thighlander
- I've got nothing better to do
- Reactions: 0
- Posts: 80
- Joined: Mon Jun 20, 2011 10:29 am
- Location: Phoenix, USA
I recently looked at hard money loans in Phoenix. You pay 30 points, then pay 30% down, then you get a 15 year fixed at 11%. It's brutal. I financed some Californians with 15% down at 8% the first year, then 12% for 2-15. No early payment penalty. Secured by a deed of trust. I can start foreclosure, if they are 1 day late.
For any decent loan you must have hard land title. (Hard land title means registered at the ministry of land and urban planning). If you have that you can probably expect to borrow less than 50% of the value depending on where the property is located. You have to be a very good proposition or have long lending history to get beyond 7 years here (and beyond 5 realistically). 9% is still a very good interest rate here, you will more likely be paying 12 - 14%. Still a lot better than the 36% they're paying now.
Mortgages on property and loans for cars - are you shitting me?
You didn't move here to get away from all that junk, at least in part?
You didn't move here to get away from all that junk, at least in part?
- thighlander
- I've got nothing better to do
- Reactions: 0
- Posts: 80
- Joined: Mon Jun 20, 2011 10:29 am
- Location: Phoenix, USA