Is HSBC planning to offer mortgages to foreigners??

 

Special thanks to Geoff Bramwell of Nicaprojects.com for all this:

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Nicaragua is becoming a hotspot for second and vacation homes -- and big financial institutions may be soonb to follow. We're getting rumors of plans by bigshots like HSBC to offer mortgages to foreigners, following years of mounting demand for such financing.

HSBC recently announced that they're preparing to offer mortgages on second homes and vacation homes in 35 countries by March 2008. HSBC completed a financial merge with Banistmo Bank of Nicaragua about April 2007. The Banistmo Bank signs were lowered and HSBC signs raised. HSBC also has a presence in Panama.

The following newswire explains:

HSBC Plans New Cross-Border Mortgage Product for Early 2008

HSBC has announced plans to launch a cross-border mortgage product - a pre-approved loan with an LTV of up to 60%, which is currently only offered to HSBC Premier clients (who are required to keep at least $100,000 in deposits and investments with the bank.)

The new "much, more open," middle market mortgage will be offered in the same 35 countries that HSBC's Premier service operates, which includes the U.S., Mexico, Brazil, and the U.K.

The UK-based bank hopes to take advantage of a recent trend in people buying second and third homes abroad as investment properties or retirement destinations.

A bank spokesperson noted that " complying with all the regulations has been difficult," and that it was too early to provide specific details of how exactly the product would be formulated.

Source: marketwatch, September 3, 2007

Meanwhile, the Leon area of Nicaragua has been getting good press in North America. An article that came out on October 13 2007 in the weekend "National Post", the Canadian national newspaper, alerted us to the growing tourism interest of Leon. It highlights various activities in the Leon area including lagoon swimming in a crater and volcano hiking. The originating article was published in the Seattle Times on August 17th. The article suggests moving beyond the normal route of Granada/San Juan del Sur and suggests that Leon, the third tourist area, is worth a good look.

Naturally we encourage that view -- we have been living it for over two years. Tamarindo Beach continues to be the best choice in the Leon area for ocean front living. With a large expanse of beautiful beach and well designed infrastructure, the future is bright.

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This is very interesting news. Many thanks, Geoff.