Earlier, the Government in Thailand had the tendency to restrict Thailand mortgage loans from being available to the foreigners. Later, it realized that granting loans to the foreigners could open new vistas in the real estate sector in the country. As such, the practice of extending loans to the purchasers increased.
Lately, the housing market in the United States of America has declined considerably. This decline was mainly due to the subprime mortgage crisis. Owing to this decline, many countries have been impacted by the ripple effects. Experts are of the opinion that Thailand may not be affected by the mortgage crisis in the United States.
Studies indicate that people have started developing more trust on other currencies as compared to the United States dollar. There are many measures adopted to ascertain the flow of capitals in Thailand. Nevertheless, the property market in Thailand has not grown so big so as to earn applauds.
A way to attract foreign investment:
As a rule, a foreigner is not permitted to avail of a mortgage loan in the country for buying property. But it was felt that the non availability of funds were a hindrance in attracting foreign investments, which indirectly acted as a speed breaker in the economic advancement of Thailand.
The Bangkok Bank has lately started operating and providing mortgage facilities as under. Thailand mortgage loan is made available to the debtor for as much as 70% of the valuation of the property. Mortgages are gaining significance in the country and so is the availability of the same. The maximum loan tenure is 10 years. The different banks of Thailand are looking upon the foreign debtors not as potential risks but as opportunities.
However, an individual opting for finance is expected to be granted only 50% financing except under certain circumstances, when the financing available is 70%. The Hong Kong And Shanghai Banking Corporation or HSBC Bank in Thailand extends mortgage loans ranging between 1,500000 to 35,000,000 Thai Baht. The Bank has declared that it would provide mortgage loans with fixed rates of interest and that the term of the loan would be 3 years. The mortgage loan amount would be 80% of price of purchase.
Last Updated on : 24th August 2013