A friend just got back from Singapore and tells me Bangkok Bank (Singapore) has effectively closed the door on Foreign loans for all but the most expensive condo purchases in Thailand.

He was told the MINIMUM loan amount is now $ USD 200,000 (up from around $70,000). Also the maximum equity required by the purchaser has jumped to 40% from a previous 30%. The 10 year re-payment terms remain intact.

The bank apparently is now requiring the minimum purchase price to be 12,000,000 Baht he said.

The repayment schedule of a $200,000 loan was more tahn $3,000 per month

The good news was that it was a 'regular' mortgage with the title clearly in the foreign purchaser's name from day-one, but wth the title deed held by the Bank until repayment was completed.

The banker told him 'the situation' was becoming increasingly 'unstable' though it was unclear what was meant by that, and that the whole offer could fall apart in any event.

A friend just got back from Singapore and tells me Bangkok Bank (Singapore) has effectively closed the door on Foreign loans for all but the most expensive condo purchases in Thailand.

He was told the MINIMUM loan amount is now $ USD 200,000 (up from around $70,000). Also the maximum equity required by the purchaser has jumped to 40% from a previous 30%. The 10 year re-payment terms remain intact.

The bank apparently is now requiring the minimum purchase price to be 12,000,000 Baht he said.

The repayment schedule of a $200,000 loan was more tahn $3,000 per month

The good news was that it was a 'regular' mortgage with the title clearly in the foreign purchaser's name from day-one, but wth the title deed held by the Bank until repayment was completed.

The banker told him 'the situation' was becoming increasingly 'unstable' though it was unclear what was meant by that, and that the whole offer could fall apart in any event.

Just received a news letter from Raimon Land and was surprised to read this: www.raimonland.com/bbl/

Have just tried www.raimonland.com/bbl/ and google blanked me.

Have just tried www.raimonland.com/bbl/ and google blanked me.

Works fine for me (but I'm outside Thailand).

Just received a news letter from Raimon Land and was surprised to read this: www.raimonland.com/bbl/

Since you just received the newsletter, the assumption is that the info on that "bbl" page is current. If it is, that's good news that they are still offering mortgages.

I wonder if the applicant can choose they preferred currency? e.g. I used to live in Japan and still have a bank account there. Could I use the JPY option at 4.10% interest? (Academic question since I am not currently in the market for a condo, much less a mortgage, but wondered about it when I saw the bbl page.)

I wonder if the applicant can choose they preferred currency? e.g. I used to live in Japan and still have a bank account there. Could I use the JPY option at 4.10% interest?

Yes, you can get a loan in any major currency, including JPY.

thaigene2,

Are you and bingobongo trying to outdo each other with "bad" news? Every time either of you comment "yet another nail in the coffin", I know something's up. According to you two, the coffin has several thousand nails. I'm not sure why this announcement would have more than a negligible effect - at the most - on the Thai real estate market. Evidently you, thedude, or bingobongo aren't going to buy real estate in Thailand, but the market will survive without you.

I wonder if the applicant can choose they preferred currency? e.g. I used to live in Japan and still have a bank account there. Could I use the JPY option at 4.10% interest?

Yes, you can get a loan in any major currency, including JPY.

Then why would anybody in their right mind choose anything BUT Japanese yen, given the low interest rate?

From the bbl page linked above:

Loan in SGD – Bangkok Bank’s Prime Lending Rate per annum (currently 6%)

Loan in USD – USD Prime + 0.5% per annum (currently 8.25%+0.5%=8.75%)

Loan in EUR – EUR Prime + 1% per annum (currently 7.25%+1%=8.25%)

Loan in JPY – JPY Prime + 1.25% per annum (currently 2.85%+1.25%=4.10%)

Loan in JPY – JPY Prime + 1.25% per annum (currently 2.85%+1.25%=4.10%)

looks like criminal usury to me (depending on the period of the fixed rate). presently i'm paying for a loan in JPY (offshore and fixed for one year) exactly 1% (ONE percent).

Loan in JPY – JPY Prime + 1.25% per annum (currently 2.85%+1.25%=4.10%)

looks like criminal usury to me (depending on the period of the fixed rate). presently i'm paying for a loan in JPY (offshore and fixed for one year) exactly 1% (ONE percent).

OOPS! looks i am a bit behind timewise. just checked... one year fixed JPY loan is now 0.92+0.5 = 1.42% (my bank in Singapore)