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Summary from The Nation (published on July 11, 2005)
Expatriates in Thailand can now take advantage
of mortgage loans being offered by Bangkok Bank out of their Singapore
branch. However, the loan contract is different from the usual
mortgages that are offered by commercial banks in that it is structured
as a long-term leasing-loan contract with a maximum maturity of
30 years. This has been done to get around the fact that, according
to Bank of Thailand regulations, Thai commercial banks are not
allowed to grant loans directly to foreigners.
The quantum available is up to 70% of the lease
price, and the loan can be denominated in either Singapore dollars
or US dollars. The loans range from S$ 100,000 to S$ 1,000,000.
Interest is charged at the prime lending rate, which currently
stands at 6% for Singapore dollars loans. Loans denominated in
US dollars are charged at the US prime rate, currently 6% as well,
plus an additional 0.5% a year.
Loan processing fees are equal to S$ 5,000, payable
upon acceptance of the Bank’s offer. All other costs are
the borrower’s responsibility. Customers can draw down on
the loan amount after the difference between the lease price and
the loan amount have been settled. Loan repayments are due on
a monthly basis, beginning one month from the date of disbursement.
If a borrower wishes to pay back ahead of maturity, they are subject
to a payment of 1.5% flat on the loan. Other documents including
copies of the applicant’s passport, income tax returns,
lease agreement, and letters from employer and bank are also required.
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