Getting A Mortgage Or Property Loan In Thailand As A Foreigner

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Posted by Continent Property on April 30, 2024
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Can a Foreigner Get a Property Loan in Thailand?

The short answer is yes, foreign nationals are eligible to apply for a property loan in Thailand, but as is often the case when it comes to home loans, the short answer is often insufficient.

The most popular types of loan for foreigners are interest-free loans, which are available for the duration of the construction period (which, on average, usually lasts anywhere from 1 to 3 years). These loans are usually only available from the property developer, not a bank.

Usually, the buyer needs to pay 30% of the property value before construction begins (this is called the contract payment), with the balance of the payments spread out over the duration of the construction period. Some developers allow buyers to pay the principal amount after the construction is completed. Payment periods vary among developers, and buyers can negotiate changes to these terms. At this point, it is important to note that the buyer should ensure that the purchase and sale agreement synchronizes the customer’s payments with each stage of the property’s construction.

While some developers may offer buyers a grace period of several months after the completion of construction, this is not always feasible and depends on the developer’s decision.

Am I Eligable To Get A Property Loan From A Thai Bank?

Thai banks currently do not offer loans to foreign nationals, but foreigners can potentially be a guarantors for Thai nationals. To delve further into this question, we recently contacted SCB Bank and spoke to a representitive. The following information is based upon the response that we were given.

According to the conversation with the bank representative, foreigners cannot get mortgage loans but can be guarantors.

A foreigner can be a guarantor for a Thai national, but he cannot be a co-borrower. We recommend going to a bank in person and bringing all required supporting documents (e.g. a Thai ID card, proof of income (salary slip, etc.), an account statement for the last six months, title deed, etc.).

If a foreigner wants to be a guarantor, he needs to prepare personal documents in the same way that regular borrowers do.

Qualification:
1) Thai nationality
2) Has never had a non-performing loan at any financial institution
3) Age at least 20 years old, not more than 65

Document Required:
1) Identity Verification
Copy of passport
Copy of house registration
Copy of marriage certificate (if applicable)
Copy of certificate of name change (if applicable)

2) Collateral Document
Copy of sale and purchase agreement

3) Income Document
3.1 Salaried employee
Salary confirmation and pay slips
Bank statements for the past six months

3.2 Business owner
Bank statements for the past six months (personal account and business account)
Four or five photos of the business premises and map showing its location
Copy of trade registration and company registration, including list of shareholders
Tax submission documents for past year, showing income and expenditures as well as receipts for purchase and sale of goods

3.3 Self-employed
Bank statements for past six months
Professional license (e.g. doctor, engineer, lawyer, architect)

What banks give foreign mortgages and property loans

Which Foreign Friendly Banks Give Thailand Property Loans?

There are a couple of foreign banks and lending agencies that allow non-nationals to apply for property loans. Due to the strict land ownership laws in Thailand, it’s worth noting that these loans are specifically for Condominiums and not grounded property.

Here are some examples:

United Overseas Bank (UOB)

UOB is located in Singapore and is a multinational banking organisation that provides property loans in a number of locations, including Thailand, Japan, Malaysia, Singapore, Australia, and the United Kingdom.

  • Property must be in Bangkok, Phuket, or other specified location
  • The value of the loan amount will be up to 70% of the government appraised value, or purchase price (whichever is lower)
  • Loan currency: Singapore Dollars (SGD), United States Dollars (USD)
  • Loan duration of up to 30 years

Other conditions include that all applicants must be between 21 – 65 years of age. Expats with work permits in Thailand are subject to a minimum salary requirement of 140,000 THB and must have worked in Thailand for a minimum of 2 years.

Further terms and conditions apply upon application. More information about the UOB property loans can be found HERE.

MBK Condo Loans

MBK offers Condominium loans in and around Bangkok, Phuket, and Pattaya. The loan size can be up to 50% of the property’s value with a minimum valuation of THB 1 Million.

General MBK financing terms and conditions for Thailand property include:

  • Property must be located in Bangkok, Phuket, Pattaya, or selected key locations
  • Loan amount from 1 million THB minimum
  • Value of the loan amount is up to 50% of the government appraised value, or the purchase price (whichever is lower)
  • Loan currency: THB only
  • Loan duration of up to 10 years
  • Apply loan with collateral as a condominium

Considered one of the more friendly foreigner based mortgage options in Thailand. Work permits, having a Thai spouse or personal references are not required to obtain loans and the customer can use his revenue generated from overseas as a financial reference.

Further terms and conditions apply upon application. For more information, click HERE.

Property developers in Phuket

Are There Any Developers In Phuket That Offer Property Loans?

There are several developers in Phuket that offer potential financing for properties (depending on terms and conditions), and one of the most proven and reliable property developers on the island is Laguna. Laguna offers freehold and renewable leasehold condominium properties for both Thai and Foreign nationals.

When applying for finance, Laguna does not require bank statements or any other kinds of financial documents; only a passport.

Depending on which option you choose to go with, a down payment of 50% of the property value must be paid before construction is completed; the remaining 50% can be taken out on credit for up to 5 years.

Please download this PDF for more details, click here.

Thailand Property Loan Summary

There are a few options which can help to purchase your first Phuket property, and that are foreigner friendly. It’s important to read the terms and conditions thoroughly to ensure that you are getting the best deal available to you.

There are a small number of banks that will allow foreigners to get property loans as stated above, but it’s worth noting that these institutions (UOB, MBK) demand that a lot of requirements are met, and sometimes the documents required are simply not available.

The repayment on these loans are often very high, if you manage to get past the paperwork required.

Generally, foreign nationals tend to prefer using personal cash savings over loans for property purchases, or getting direct financing from the developer if possible.

Authors note: This information was deemed correct at the time of writing, but is subject to change.

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