Bkk Bank Singapore Loans Not Available

[drbrit]

Bangkok Bank's Singapore Branch advised me in person that they are no longer providing home loans to foreigners working in Thailand. They have reached their limit for loans imposed by head office, and even though the manager said it was great business and low risk lending, he cannot offer it any more.

I would like to find an alternative way to borrow for a condo purchase in Thailand, using savings and earnings I have within my Thai accounts.

I do not have sufficient offshore funds to purchase outright with foreign money.

Can anyone advise?

Note: Bangkok Bank still mention their service in their website under services for Foreigners, but it should be removed soon.

[astral]

Do you have a property in you home country that you could use to raise a loan there?

Remember the golden rule: Do not invest more in Thailand than you are prepared to walk away from.

[drbrit]

Do you have a property in you home country that you could use to raise a loan there?

Remember the golden rule: Do not invest more in Thailand than you are prepared to walk away from.

Yes I do. It is still under mortgage, but in very positive equity. I assume you are suggesting using that as security to get a loan from a foreign bank?

[astral]

Do you have a property in you home country that you could use to raise a loan there?

Remember the golden rule: Do not invest more in Thailand than you are prepared to walk away from.

Yes I do. It is still under mortgage, but in very positive equity. I assume you are suggesting using that as security to get a loan from a foreign bank?

No, I mean get a loan from the bank in your own country and then use the money for the overseas property.

This is the way I financed my Thailand home, 10 years ago.

All my loans are now repaid.

[Barney_the_Dinosaur]

OP is correct. They have filled targets/quotas in Singapore for this year. (Weird huh....so they're not doing any more)

They may offer similar mortgage deals next year.

Bangkok Bank in Hong Kong is still offering the identical package. Apply there. HK$ or US$.

[thaigene2]

Don't count on it. I was told by my bank -- branch of SCB that had been lending to farangs for condo purchses and home loans (e.g farang as guarantor for house/land in name of Thai wife) -- that the headoffice rule was STOP!! No more loans to foreigners...end of story. Seems it's the same story now for car purchases. Some have managed this in the past, but this is what I have been told personally by one of the top farang branches of SCB and was also told this by the vice-president of loans at another top Thai bank.

Listen to Astral's advice very carefully. This is all tied to the visa issue IMHO. If you need a loan to buy a place here you're on thin ice already - how do you know you can even live here when you want to??

I'm out of the market for at least a year or more as I wait and watch - more interested in the anti-farang thing at present as I feel it really is connected to the property and loans issue too.

[bkkandrew]

Hmmm..

This sounds quite a serious policy shift. It could be that the HO bean counters have finally worked out their massive exposure (AKA '97) to the property market, funding countless projects where the return is either fanciful or dependant on the now-threatened foreigner market.

Curtailing loans (and therefore exposure) to nationalised Thais sends out a politically risky signal, so foreigners are the easiest target, even though they provide the best security to limit exposure risk.

Really encapsulates the Thai way - save face with your countrymen, but hurt yourself in the process!

[Heng]

If you need a loan to buy a place here you're on thin ice already

Probably one of the more important things for folks to remember. Goes for foreigners and locals.

[drbrit]

Its more that I have savings here (in THB) that I want to use to make the purchase. With restrictions on sending money out of the country, and the exchange rate losses, a better option is a short term loan outside the country, which you can use your THB savings for repayments.

I also have a house in the UK in positive equity, that could be used as security.

[Barney_the_Dinosaur]

Its very simple

1) BBL Singapore is up to its lending limits for 2006. Maybe get some more allocation in 2007, we'll see when the business plan is done.

2) BBL Hong Kong still has capacity and can do the loan on this years books.

No 'serious policy shift', no 'shades of 1997'. Calm down

[drbrit]

Its very simple

1) BBL Singapore is up to its lending limits for 2006. Maybe get some more allocation in 2007, we'll see when the business plan is done.

2) BBL Hong Kong still has capacity and can do the loan on this years books.

No 'serious policy shift', no 'shades of 1997'. Calm down

I have contacted Bangkok Bank HK office, and received a reply, that they offer this service for HK residents.

They suggested I get in touch with Bangkok Bank HQ in Bangkok....which is of course where I started and they (erroneously) recommended Singapore. My head is spinning in circles. Doesn't the country want any investment?

[astral]

My head is spinning in circles. Doesn't the country want any investment?

Yes.

Hard cash.

As another poster says, if you have to borrow, perhaps you should not be buying.

[webster13b]

Its very simple

1) BBL Singapore is up to its lending limits for 2006. Maybe get some more allocation in 2007, we'll see when the business plan is done.

2) BBL Hong Kong still has capacity and can do the loan on this years books.

No 'serious policy shift', no 'shades of 1997'. Calm down

I have contacted Bangkok Bank HK office, and received a reply, that they offer this service for HK residents.

They suggested I get in touch with Bangkok Bank HQ in Bangkok....which is of course where I started and they (erroneously) recommended Singapore. My head is spinning in circles. Doesn't the country want any investment?

Singapore stopped issuing loans to foreigners, that's true. As for HK, you're right, they only issue for HK residents, same as in Bkk Bank in KL.. only for Malaysian residents

Edited November 29, 2006 by webster13b

[thaigene2]

Yes I was looking and very close to buying when the sh+t hit the fan. It was probably a blessing in disguise.

I've decided to keep an eye on the market, but I will stop bashing my head against the wall over all this. Hurts too much. Money in the bank is a better feeling anyway - money in another country's bank that is!