Can Foreigners Get a Mortgage in Thailand?
Can foreigners get a mortgage in Thailand?
This must be one of the most frequently asked questions we get on a regular basis. We have some good news and some bad news. Here’s the good news:
Absolutely! Foreigners can get a bank loan to purchase a property in Thailand.
So what could be the bad news then?
Well, it’s not that easy.
First of all, as we’ve mentioned on our previous article Can Foreigners Buy Property in Thailand?, foreigners can only own Foreign Freehold condominiums under their name 100%. Therefore, you can only get a mortgage to purchase a Foreign Freehold condominium.
That would still be okay, but you can only purchase a completed condominium unit with a bank loan in Thailand. The banks want to see the actual property you intend to purchase; therefore, off-plan projects are not an option.
That would still be okay, but this is not all. You can’t get a bank loan to purchase property wherever you want in Thailand. They limit the market only to “Bangkok and selected big provinces,” which Phuket is on that list.
So probably everything is okay so far.
Here’s where things get a bit complicated. First of all, they ask you to have a valid work permit for at least two years and have a documented salary of at least 140,000 THB per month. This comes with proof of employment in Thailand, such as a Letter of Employment prepared by your employer stating the length of your service as well as your monthly income. They will most likely ask for the payslips for those monthly salaries you’ve been receiving for the past at least two years.
Things That May Help You To Obtain a Bank Loan in Thailand
There are a couple of things that may help your case to obtain a mortgage from the banks in Thailand, though. For example, if you already have a property in Thailand under your name, you will be able to increase your chances by quite a lot. Or if you have a property in your home country that you can use as collateral to get a bank loan, that’ll be also an extra point in your favor.
The Banks Offering Bank Loan for Foreigners to Buy Property in Thailand
Not all the banks offering Mortgages for foreigners to purchase a property in Thailand. There are a couple of well-known local banks such as Bangkok Bank, Thai Military Bank and Siam Commercial Bank, as well as some Global banks such as HSBC and UOB (United Overseas Bank), offering bank loans for foreigners to purchase a property in Thailand.
All of these banks offering Mortgages for foreigners to buy a property in Thailand have different requirements. They also have different interest rates. Some offer a maximum of 50% of the appraisal value of the property, while some may offer up to 70%. It is best to check all the options to get the best terms that may be suitable for your needs.
The Other Ways to Get Financial Help To Buy Property in Thailand
Even though getting a mortgage or bank loan to buy property in Thailand isn’t as easy as it is back home, there are some other ways that you can find some flexibility to pay for the property you have your eye on without getting too tight on the budget.
When you purchase an off-plan property in Thailand, almost all developers are offering an extended payment term until the completion of the project. Those extended payment terms typically start with up to 30% of the property price within one month, and the rest is spread out over the course of 12 to 24 months depending on how long the construction of the project will take. And most developers are quite flexible to discuss the stage payments to tailor them for you to make you feel more comfortable with the terms.
On top of the extended payment terms, some well-established property developers in Phuket are offering low or zero interest in-house financing to their investors. Those terms can be discussed directly with the developer once you find the property that you like. Here at Storm Real Estate, we would be happy to recommend developers offering financing to their buyers and negotiate the terms to make them more suitable for your financial situation.
So overall, when you ask yourself can foreigners get a mortgage in Thailand, remember that there are ways to get some financial aid when you want to buy a piece of heaven in Thailand. Some options may be tougher to obtain than others. 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. For more information you can also check our article can foreigners buy property in Thailand.
