Home Loans for Foreigners in Thailand: A Complete Guide

“Can foreigners get a mortgage in Thailand?” is one of the most frequently asked questions we receive from our clients. The short answer is yes, foreigners can obtain a bank loan to purchase property in Thailand, but the process is not straightforward.

Firstly, it’s crucial to understand that foreigners can only own foreign freehold condominiums 100% under their name. Therefore, you can only secure a mortgage to purchase a foreign freehold condominium. If you’re unfamiliar with the ownership options, please read our article on the legal aspect of how foreigners can buy & own property in Phuket, Thailand.

Furthermore, you can only purchase a completed condominium unit with a bank loan in Thailand. Banks require you to show the actual property you intend to purchase, making off-plan projects ineligible for financing. An advantage is that a completed property’s due diligence process is more straightforward. 

However, there are additional limitations, as you cannot obtain a bank loan to purchase property just anywhere in Thailand. Banks restrict lending to “Bangkok and selected big provinces,” with Phuket being an approved location.

Things That May Help You To Obtain a Bank Loan in Thailand

Several factors can strengthen your case for obtaining a mortgage from banks in Thailand. For instance, if you already own property in Thailand, this can significantly enhance your chances of securing a loan. Additionally, owning a property in your home country that you can use as collateral may also work in your favor.

While foreigners face several challenges when seeking a bank loan to purchase property in Thailand, a few banks offer options under specific conditions. Below is an overview of these banks and the requirements for obtaining a loan as a foreigner in Thailand.

Banks Offering Home Loans for Foreigners in Thailand

Not all banks offer loans to foreigners, but a couple that do are: 

1. HSBC
2. Siam Commercial Bank
3. Thai Military Bank
4. Bangkok Bank (via its Singapore branch)
5. United Overseas Bank (UOB)

These banks have varying policies regarding lending to foreigners, and we recommend you to contact each institution for the current specific terms and conditions.

Other Institutions That Offer Loans to Foreigners in Thailand

MBK Guarantee offers financing options, particularly for foreigners purchasing property in Thailand, with terms similar to Thai banks. Their terms offered are similar as from the banks. We at Storm Real Estate have a good relationship with the MBK team and can put you in touch with the right person if you require more information. 

Requirements for Foreigners to Get a Mortage in Thailand

To qualify for a loan, foreigners typically must meet the criterias below. Note that this is not meant to be a complete list. Your bank will tell you exactly what they need from you. 

Income and Employment

• Work Permit: A valid work permit or Thai resident permit is generally required.
• Employment Verification: Proof of stable employment, including a letter from the employer detailing years of service and salary, is necessary. Some banks may also require pay slips and company documents.
• Stable and documented income: Banks require proof of steady employment and income, usually a minimum of 80,000-140,000 THB per month for at least 2 years. 

Credit History and Collateral

• Good credit score: Applicants must have a strong credit history and financial stability.
• Down payment: A down payment of 30-40% is typically required, with a loan-to-value (LTV) ratio of 60-70%.
• Property type: Only foreign freehold condominiums are eligible, as foreigners are restricted from owning land or houses directly

Loan Terms and Conditions

• Interest rates: Typical interest rates for foreigners range from 6-8%, higher than Thai nationals due to perceived risk.
• Loan purpose: Loans are only available for completed condominium units, not off-plan projects.
• Loan amount: Banks conduct their own property valuation to determine the maximum loan amount.

Documentation Requirements

• Passport and work permit: Copies of the applicant’s passport and valid work permit.Proof of income: Employment letter, pay slips, and tax records.
• Property documents: Copies of the land deed or condominium ownership certificate.
• Down payment: Proof of the down payment made
• Age Limit: Applicants must be between 21 and 55 years old and not exceed 60 years of age by the end of the loan term.

What is the Typical Interest Rates for Foreigners Mortage in Thailand?

Typical interest rates for mortgages available to foreigners in Thailand generally range from 6% to 8%. The elevated rates for foreigners are primarily due to the perceived higher risk of lending to non-residents.

The interest rates can vary based on the specific bank and the loan terms. While some banks may offer fixed-rate terms, the overall lending environment for foreigners can be competitive, so it’s advisable to compare rates from different institutions to secure the best deal. 

The typical loan term for mortgages available to foreigners in Thailand generally ranges from 5 to 30 years, depending on the bank and the specific loan conditions.

Application Process

Below is a typical application process for foreigners to apply for a mortgage in Thailand: 

1. Payment of the valuation and upfront fee (+ inspection fee if relevant)
2. The valuer and representative from the bank will make arrangements to see the property (valuations take roughly 7 working days for the report to be ready)
3. Submit the required documents
4. Wait for approval result (timescale may vary, but typically within around 2 weeks for the result)
5. If approved, the team will prepare the loan agreements (around 5 working days) for signing
6. The borrower is required to open a bank account in said bank
7. A meeting at the Land Department with the Legal Department is scheduled. The borrower needs to either go in person or arrange a POA; Thai lawyers are advised to ensure correct POA. Client needs to make sure POA signatures match those registered at the Land Department and that there are no overdue taxes/debts on the property, which would prevent mortgage
8. The mortgage will be registered on the original title deed at the Land Department. The bank will keep the title deed and deposit the loan cheque into the relevant Thai bank account or hand it over to the client at the Land Department

Other Ways to Get Financial Help To Buy Property in Thailand

Obtaining a mortgage or bank loan to buy property in Thailand as a foreigner is not as straightforward as in your home country. However, there are alternative ways to finance your property acquisition and gain the flexibility to make payments.

Extended Payment Plans

When you purchase an off-plan property in Thailand, almost all developers offer an extended payment term until the completion of the project. Those extended payment terms typically start with a down payment of up to 30% of the property price within first month, with the remainder spread out over 12 to 24 months, depending on the construction time of the property. Most developers are pretty flexible in discussing the payment terms, especially if you are working with a real estate agent who has a good relationship with the developer. 

Low-Interest In-house Financing

On top of the extended payment terms, some well-established property developers in Phuket offer their investors low- or zero-interest in-house financing. Those terms can be discussed directly with the developer once you find the property you like. We at Storm Real Estate would happily recommend developers that offer financing to buyers and negotiate the terms to make them more ideal for your financial situation.

If you give us a call, we would be happy to discuss and assist you in finding the right way to buy property in Thailand.

Meet the Author

A. Nuno Isitemiz

With extensive expertise in Phuket’s property market and Thai property laws, as well as deep connections with local developers, Nuno co-founded one of the largest real estate agencies in the region. Recently, he launched his own venture, Storm Real Estate, specializing in a carefully curated selection of properties that meet his high standards. Unlike larger agencies where frequent staff turnover can disrupt client relationships, Nuno is committed to offering a stable, one-on-one experience with himself or a member of his team of experienced property consultants, from initial consultation through purchase and beyond. By prioritizing quality over quantity, he ensures that each client’s unique needs and budget are met, making dream homes a reality.

Contact Us

Do not hesitate to contact us if you have any further questions on the subject, or if you would like to know more about property in Phuket in general.