Can Non-Thai nationals get financing to buy property in Thailand?
There are a few ways foreigners can use finance to purchase property in Thailand. If you’re an expatriate who owns a business in Thailand or you are currently working on a job that pays well, there is a possibility that you can borrow money against your company in the form of a mortgage to buy a home. However, since each bank has various requirements and restrictions, we recommend that you consult with your local bank beforehand. Although it is possible to get financing from banks here, it is usually not a recommended option because interest rates are often quite high in comparison to established markets.
Anyhow here are some options you can consider
Option 1) There are a few reputed banks that can provide foreigners with mortgage solutions. MBK Guarantee, ICBC, and UOB Ban are the three most well-known banks/lending companies that lend to both abroad and locally based clients. These organisations usually only finance freehold apartments, and some have additional requirements, so check each one to check if you qualify. Interest rates vary from 7% and 10%, based on how much you’re borrowing from them.
Option 2) Securing finance from your personal bank in your own country. Several foreign banks offer two types of loans to those who want to buy property in another country. The first is a personal loan, which often has lower interest rates but shorter repayment terms than a standard mortgage (3 – 10 years versus 10 – 30 years).
The second type is an overseas property loan (mortgage), which will demand an extensive documentation report to your bank in order to explain the property you plan to buy. However, each foreign bank will have different requirements.
Option 3) If you are married to a Thai citizen with a regular source of income, you can loan in their name and have your name added to the ownership document to protect yourself at the moment of buying a property.
Option 4) Real estate companies and the whole property business are aware of the growing difficulties in obtaining overseas loans and local mortgages, especially for foreigners and Thais, many companies are offering payment plans ranging from 1 to 4 years to assist with this. Usually, a small down payment of roughly 20 to 30% of your property price is requested in the first 30 to 45 days, with additional payments paid over the remainder of the construction process.
A small number of real estate developers provide post-completion financing options. It allows customers to live in or rent out a finished property while making additional payments to the developer over the course of 1-2 years. In this situation, the developer could charge a 1 to 2% interest rate, but they can help customers finance their acquisition by helping you rent out the property.
But don’t worry as you can always make well-informed decisions and seek professional advice from Thaiger Property. Through this website, you will find a dedicated property consultant that can suggest properties that offer long-term developer finance. Also, check out our article on Do I need a bank account in Thailand to buy property?
