Thailand’s commercial banks have reported better-than-targeted growth in home loans during the first half of the year.
This comes on the back of steady economic recovering which has boosted public confidence.
The Bank of Ayuthaya’s Vice President for Home Loans, Nattaphol Luepromchai, said that new loans for homes across the board were down 9 percent during the first half of this year.
This was due to a slowdown in Thailand’s real estate market which, according to the bank, saw many developers cut prices due to an oversupply.
At the same time Thailand’s financial institutions relaxed home loan approval regulations as the debt situation which was caused by the first car buyer scheme started to lift.
In the second half of the year, new home loans are expected to grow by 5 percent on the recovering economy and high competition among banks.
The Bank of Ayuthaya issued home loans for real estate worth THB 25 billion during the first six months of the year, some 4 percent ahead of target.
It expects full year approvals to reach THB 59 billion.
It is almost impossible for non-Thai property buyers to obtain finance for their purchase from Thai banks without a Thai spouse. There are options however, from private companies that will finance a property purchase with a significant deposit and high interest rates compared with those available to Thai buyers and investors.
Recently, some banks in Singapore were also offering finance for selected completed projects to Singapore nationals.
Whether this is still available is not known. Often it appears to be something that’s available but not promoted.