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Hi Guys and Girls,

Does anyone know what the current mortgage interest rate is in Cambodia, specifically on residential property in PP?

Is a 50% loaf to valuation ratio acceptable to the banks?

Any ideas about establishment fees?

Thanks
LJ

Depends on the bank...visit different banks websites for information.

Fees depend on the loan value.

You need security (ie. Hard Title Property) and guarantor/s.

PSD-Kiwi wrote:Depends on the bank...visit different banks websites for information.

Fees depend on the loan value.

You need security (ie. Hard Title Property) and guarantor/s.

Is that a Khmer guarantor for an expat borrower?
Do they generally hike up the rates for expats?

Extremely rare for an expat to be granted a mortgage without a Khmer partner (legally married), usually only available for strata-titled properties.

If you or your wife own hard title properties getting 50% to 65% of the value is not hard (sometimes even more if it's a well known borey)
If you own soft titles at best 50%
If you need a quotation I have many friends working in banks and they might get you a better deal than you would normally get.

Soft-titled properties are not accepted as security on mortgages from banks.

Most banks will loan up to 80%, but that is dependent on income, security, guarantors income, etc.

PSD-Kiwi wrote: ↑Wed Oct 10, 2018 5:48 pm Soft-titled properties are not accepted as security on mortgages from banks.

About one year ago, ACLEDA bank change their rules and made a statement saying that soft titles would be accepted from then onwards.

Duncan wrote: ↑Wed Oct 10, 2018 6:01 pm

PSD-Kiwi wrote: ↑Wed Oct 10, 2018 5:48 pm Soft-titled properties are not accepted as security on mortgages from banks.

About one year ago, ACLEDA bank change their rules and made a statement saying that soft titles would be accepted from then onwards.

Could be right, but we were told when we met with an Acleda loans manager late last year that soft-titles are not accepted as security.

Also, forgot to add to previous post that mortgages are only granted for hard-title or strata-title property, you cannot apply for a mortgage on a soft-title property. Depending on the value of the property, the applicants income, and the deposit percentage, the hard-title of the property you are applying for the mortgage may be accepted as security.

PSD-Kiwi wrote: ↑Wed Oct 10, 2018 6:50 pm

Duncan wrote: ↑Wed Oct 10, 2018 6:01 pm

PSD-Kiwi wrote: ↑Wed Oct 10, 2018 5:48 pm Soft-titled properties are not accepted as security on mortgages from banks.

About one year ago, ACLEDA bank change their rules and made a statement saying that soft titles would be accepted from then onwards.

Could be right, but we were told when we met with an Acleda loans manager late last year that soft-titles are not accepted as security.

Also, forgot to add to previous post that mortgages are only granted for hard-title or strata-title property, you cannot apply for a mortgage on a soft-title property. Depending on the value of the property, the applicants income, and the deposit percentage, the hard-title of the property you are applying for the mortgage may be accepted as security.

Cannot find the announcement made by ACLEDA bank but it was reported in the PP Post about one year + ago.


Quote,

It’s hard to pin down an official government statistic for the number of the Kingdom’s households without hard title, but land rights groups have estimated the number to be as high as 85 percent.

Meanwhile, one of the Kingdom’s other major banks, ACLEDA Bank, has a different story. Not only does it lend against soft title, but its mortgage book grew over the course of the GFC.

Despite the different experiences of the two banks, there are some similarities

In Siphann, ACLEDA senior vice president and head of credit, says for long-term loans (about 10 years at ACLEDA) of more than $30,000, customers must have hard title, but otherwise, a mortgage against a soft title property is available.
Furthermore, ACLEDA’s home loan book grew 26 percent during the economic crisis, bringing its total number of customers as of September 2010 to 3,876, and its portfolio value to US$ 67 million.

Some banks only lend until you're 65.

So if you're 55 now, you will be required to pay it off within 10 years

It substantially increases monthly payments