Asian News - Thailand: Govt mulling plan to promote mortgage insurance
Source: Asia Insurance Review | May 2016
The Thai Finance Ministry is considering a plan to promote mortgage insurance in the property sector in a move to reduce credit risks for financial institutions and allow homebuyers easier access to housing loans.
“Reduced credit risk for financial institutions would induce greater loan expansion and help support those asking for housing loans to obtain greater credit lines,” said Ms Banthornchome Kaewsa-ard, a fiscal policy adviser in the ministry’s Fiscal Policy Office. “Property businesses would also generate greater property sales.”
The Ministry has asked the Asian Development Bank to help study the plan, reported the Bangkok Post.
Financial institutions would have to come to an agreement with organisations involved with mortgage insurance for the plan to proceed, said Ms Banthornchome.
She said that the Ministry is also studying a reverse mortgage scheme because Thailand is becoming an ageing society with many people aged over 60. The proportion of Thais aged over 65 is expected to increase from 7% in 2003 to 14% by 2025.