Do you have houses for rent in Korat?

Yes, we have various types of rental properties in Phuket including single houses, townhouses, and condominiums.

What are property prices like in Korat?

Property prices in Phuket vary depending on location, size, and condition, ranging from hundreds of thousands to several million baht.

Do you buy properties as-is?

Yes, we buy properties in any condition with fair valuation and quick processing.

Is it a Good Idea to Jointly Apply for a Home Loan with a Partner or Friend? Deep Dive into the Pros and Precautions Before Deciding

Owning a home is a dream for many, but sometimes a single income isn't enough to get a loan approved. Jointly applying for a home loan has become a popular solution, especially jointly applying with a partner or jointly applying with a friend to increase the approved loan amount. However, before you put pen to paper on a long-term contract, let's take a deep dive into the benefits, conditions, and precautions you need to know to prevent potential problems in the future.

What is a joint home loan? Who can apply together?

A joint home loan is a home loan application with two or more applicants (most banks allow a maximum of 3 people). Banks will assess the income and debt obligations of all joint applicants together, which increases the capability to repay the loan.

In the past, banks usually required applicants to be blood relatives or legally married. However, conditions have become more open, allowing the following groups to apply together:

Spouses (both legally married and unmarried partners)
LGBTQ+ couples (many banks have specific campaigns to support this)
Siblings or relatives
Close friends (some banks allow friends to apply for a joint home loan under specified conditions)

Advantages of applying for a joint home loan with partners or friends

1. Easier approval and a higher loan amount

By combining the income of multiple applicants, banks see higher financial stability, which increases the chance of loan approval. Furthermore, the approved loan amount will be higher, allowing you to choose a home in a better location or with a size that better meets your needs.

2. Easing the burden of monthly mortgage payments

Jointly applying with a friend or partner helps reduce the stress of personal financial liquidity because there is someone to help share the installments, as well as common area fees and home maintenance costs.

Precautions and risks you cannot ignore

Even though increasing the loan limit sounds appealing, signing a contract is a legal obligation. Here is what you need to be aware of:

1. 100% debt obligation (Joint debtors)

Legally, if one person stops making payments, the bank has the right to demand the entire debt amount from the remaining joint applicants. You cannot claim that "I have already paid my share."

2. Ownership issues when a relationship ends

If you apply for a joint loan with a partner and break up, or with a friend and have a falling out, managing the property becomes very difficult. If you want to sell or transfer the name, you need the consent of all parties. If you cannot reach an agreement, it could escalate to a lawsuit.

3. Tax deduction rights are split

Home mortgage interest can be used for tax deductions of up to 100,000 THB/year. However, if you jointly apply for a home loan with 2 people, this right is split in half, leaving each person with no more than 50,000 THB, which may result in losing the full tax benefit you could have received.

Conclusion: How to apply for a joint loan as safely and comfortably as possible?

Jointly applying for a home loan with a partner or friend is an excellent aid if planned carefully. The important thing is to communicate clearly from the very first day, make a written agreement on who is responsible for what, and in case of an unexpected event, determine who has rights to the house, ensuring the home truly remains a haven of happiness.

Frequently Asked Questions (FAQ) about joint home loans

Q: Can I apply for a joint home loan if we are not legally married? A: Yes, you can. Currently, many banks allow unmarried couples, including LGBTQ+ couples, to apply for joint loans, though you may need to provide proof of living together.
Q: Can 3 people apply together? A: Most banks allow a maximum of 3 people to apply for a joint loan, provided the applicants meet the criteria set by the bank.
Q: How can I remove a joint applicant's name? A: You can do this by "Refinancing" or requesting a contract change with the original bank. However, the remaining borrower(s) must have enough repayment capacity according to the bank's criteria.