Home loans for seniors
At this time, it's believed that parents, elders, or seniors aged 60 and above who wish to apply for a home loan are questioning whether they can apply for a home or condo. In fact, there are still home loans available for retirees that facilitate home ownership, construction, repairs, or mortgage repayment. Details are as follows:
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1. UOB Home Loan
This loan is provided by the bank to purchase a new home, a pre-owned home, a condo, or to construct a home for residential use. It caters to salaried individuals, merchants, civil servants, freelancers, and the elderly. Details are as follows:
Home Loan Applicant Qualifications
- Thai nationality
- Minimum income of 20,000 baht
- Age not over 70 years for salaried borrowers and government agencies and state enterprises
- Age not over 75 years for business owners
Average 3-year interest rate
Minimum interest rate of 4.25% (with life insurance covering the MRTA loan amount)
Loan limit
100% of the appraised value
Documents required for loan applications
Personal documents
- National ID card
- House registration
- Marriage or divorce certificate (if applicable)
- Name change certificate (if applicable)
- Spouse's national ID card and house registration (if applicable)
Security documents
- All pages of the land title deed
- Sales agreement
- Proof of down payment
Financial documents
- Latest payslip and salary certificate (original)
- Bank account statement for the past 6 months
- For self-employed individuals/business owners, a commercial registration, Ministry of Commerce certificate, or memorandum of association are required.
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2. Loan for retired government officials, Government Housing Bank
This loan format is available to retired government officials. They can use their inherited pension as collateral for this loan application. This loan can be used to purchase a home, build, renovate, or repay a mortgage, or purchase equipment and facilities related to their living.
Home loan applicant qualifications:
Be a pensioner or monthly pension recipient at the Comptroller General's Department or Provincial Treasury Office. A certificate of eligibility is issued to use inherited pensions as collateral for the loan. The maximum repayment period is 40 years, provided the borrower's age plus the number of years requested for the loan must not exceed 75 years.
Interest Rate
Effective Interest Rate (EIR)
- For welfare customers and equipment purchases = 4.40%
Loan Amount
Not exceeding 100% of the amount of inherited pension rights of the pension recipient or monthly pension recipient, as specified in the certificate of inherited pension rights, used as collateral for the loan, and the loan guarantee amount under the pension system guaranteed by the Comptroller General's Department, whichever is lower.
Documents required for loan applications
are:
Personal Documents
- National ID Card / Government Pension Card
- House Registration (homeowner's copy)
- Marriage / Divorce Certificate (if applicable)
- Name / Surname Change Certificate (if applicable)
Security Documents
- Certificate of eligibility to use inherited pension rights as collateral for the loan (original)
- Copy of the Sales Agreement or Deposit Agreement In the case of purchasing land with a building, purchasing a condominium unit, or purchasing land with a building constructed on it.
Financial Documents
- A savings account passbook showing monthly pension income or monthly pension recipient (original and copy)
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3. Government Savings Bank Welfare Loan
This home loan aims to make homeownership dreams come true, especially for retired civil servants and permanent employees. The loan is intended for purchasing a new home, constructing a home, repairing it, and redeeming a land mortgage, according to the bank's terms and conditions.
Home Loan Applicant Qualifications
- A retired civil servant who has received a certificate of inherited pension rights issued by the Comptroller General's Department/Provincial Treasury Office, or a permanent employee who has received a certificate of inherited pension rights for a monthly pension recipient issued by the Comptroller General's Department/Provincial Treasury Office.
- A permanent resident who can be contacted.
- A depositor in the bank's savings account.
Interest Rate
4.25% per annum (MRR -2.245% per annum for the duration of the contract).
Loan Limit
The maximum loan amount is 100% of the purchase price or the appraised value of the property, whichever is lower, subject to the bank's consideration criteria.
Documents Required for Loan Applications
Personal documents for both the primary borrower and co-borrowers are:
Full-time employee/government official/state enterprise employee/bank employee/securities finance officer
- Copy of ID card
- Copy of house registration
- Latest payslip (or, if no payslip is available, a salary certificate no more than 2 months old)
- Copy of bank account statement for the past 6 months
Self-employed/Business owner
- Copy of ID card
- Copy of house registration
- Copy of bank account statement for the past 6 months
- Copy of business license issued by a government agency
- Statement of income and expenditure (if applicable) for the past 6 months / Financial statement / In the case of a juristic person VAT receipt (Por. Por. 30) for the past 6 months
Security Documents
- A copy of all pages of the land title deed, or a copy of all pages of the NS. 3 Kor. form, or a copy of the condominium ownership deed or A. Chor. 2 form, or a copy of the building ownership deed, or a copy of the house building permit, or a copy of the land sale contract (Tor. Dor. 13 form), or a copy of the condominium purchase contract (A. Chor. 23 form).
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In summary, can you afford a home loan at age 60? Can you afford a home purchase at age 65? Now it's clear that if seniors want to get a home loan, age is no longer a barrier with the three home loans for retirees mentioned above.
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Thank you for the great information from Sansiri.
