In recent years, Thailand has become a highly sought-after location for property investment in Southeast Asia. Urban locations such as Bangkok, Pattaya and Phuket have been very popular amongst foreign buyers.
However, not all foreign buyers want to be heavily invested by putting all their cash into acquiring the property. Instead, investors want the option to finance their real estate with a property loan. So let’s explore the available options to finance the property in Thailand for foreign buyers.
Can foreigners get a property loan in Thailand?
In short, yes, foreigners are eligible to apply for a property loan in Thailand.
You will be allowed to take a loan if you fall into one of these following categories.
- Work in Thailand under work permit at least 1-2 years with stable income
- Hold Thai PR – PR holders may get more loan options with less strict conditions
- Get married to a Thai – You can take a loan by acting as a guarantor. However, by doing this, you will not have the ownership right to the property
- Foreigner holding dual citizenship including Thai Citizenship
If you do not fit in any of the above categories and wish to take a property loan in Thailand, it is still possible but your options become more limited.
General criteria for foreigners taking a property loan in Thailand
In most cases, the general conditions for foreigners taking a property loan are as follows –
(the conditions may vary from bank to bank)
- Age between 21 – 55 years and not exceeding 60 years by the end of tenor
- Have a good credit score and a stable minimum income of 80,000 THB – 140,000 THB (or at least 3 times of your monthly installment repayment)
- The property must be completed project in Bangkok or selected areas in Thailand
- Loan-to-value amount up to 70% of the government appraised value or purchase price (whichever is lower)
- Interest rates are significantly higher than Thai interest rates (around 5%-8%)
- Payback period is generally a maximum of 15 years
Banks and institutions that provide mortgages to foreigners in Thailand
United Oversea Banks (UOB)
UOB is a Singaporean multinational banking organization headquartered in Singapore. The bank provides international property loans in Singapore, Malaysia, Thailand, Japan, Australia and United Kingdom.
UOB property financing terms and conditions in Thailand –
- Property location musts be in Bangkok or selected upcountry locations
- Available only for investment and residential purposes
- Loan-to-value amount up to 70% of the government appraised value or purchase price (whichever is lower)
- Loan currency: SGD, USD
- Payback period up to 30 years
For expats working under work permit in Thailand, the minimum salary of an applicant is 140,000 THB with at least 2 years working time under the work permit.
To learn more about UOB mortgage click here.
Industrial and Commercial Bank of China (ICBC)
ICBC is a Chinese multinational state-owned commercial bank. The bank provides mortgages to foreigners wishing to purchase property in Thailand. The bank may consider the applications from all nationalities but ICBC prefers and prioritizes the applicants from China, Hong Kong, Macau, Taiwan, Singapore, Malaysia and some Asian countries with its presence.
ICBC property financing terms and conditions in Thailand –
- Property location musts be in Bangkok and its vicinity, Pattaya, and Phuket
- Available for completed condominiums with value more than 2.5 million THB
- Loan amount from 1.5 – 15 million THB
- Loan-to-value amount up to 60% – 70% of the government appraised value or purchase price (whichever is lower)
- Loan currency: SGD
- Payback period up to 3-15 years
For expats working under work permit in Thailand, the minimum salary of an applicant is 80,000 THB with at least 1 year working time.
To learn more ICBC mortgage click here.
Other Thai Banks
Other local banks only offer mortgages to foreign buyers married to Thai spouses. Foreigners, in this case, can only act as a “Guarantor” and cannot own the property legally as the contract will be under the name of Thai spouse.
However, this will allow foreign buyers to get relatively attractive interest rates and conditions as Thai nationals. Most of the cases both Thai spouses and foreign guarantors need to be working professionals with stable income and good credit records.
MBK Guarantee
Most people have a misunderstanding that MBK guarantee can provide mortgages to finance Thai property based on your financial records and income. However, it actually provides a loan using the property in Thailand as a collateral. In other words, you will need to own some property before taking a loan to finance another property.
MBK Guarantee financing terms and conditions in Thailand –
- Property location musts be in Bangkok or selected key locations
- Loan amount from 1 million THB
- Loan-to-value amount up to 50% of the government appraised value or purchase price (whichever is lower)
- Loan currency: THB
- Payback period up to 10 years
- Apply loan with collateral as a condominium
MBK Guarantee is regarded as number one foreigners friendly mortgages options in Thailand. It does not have restrictions on nationality. PR, work permit, and Thai spouse are also not required. Revenue from oversea can be used for reference.
To learn more MBK guarantee click here.
Note: Bangkok Bank and Standard Chartered Bank no longer offer Home loans to foreigners.
Mortgages options for foreigners without income in Thailand
It is possible for foreigners without a Thai Work Permit or Permanent Residence to get access to financing selected property. The options are usually as follows –
Offshore Mortgages
Few international banks with subsidiaries in Thailand provide offshore mortgages to foreign buyers (from the bank’s home country) to purchase property in Thailand. The applicants do not need to work or live in Thailand but need to have proof of stable income from the bank’s country of origin or selected countries. The banks that offer this option are: UOB, ICBC, and Bank of China.
Lending Institution
MBK Guarantee allows applicants from any nationality to apply for loan without having to work or live in Thailand. Applicants may apply for loan using existing property as a collateral.
Other financing solution
You can take a mortgage against property in your country of origin. If you have a fully paid up property in your home country, this option may be beneficial for you because interest rates in Thailand are relatively higher compared to many other countries. You then can use that loan amount to purchase property in Thailand and pay the monthly installment in your home country. Especially, if you have proof of income from your home country, this will be the most viable option.
Conclusion:
- Foreigners can get a property loan in Thailand if they are qualified under the strict conditions of financial institutions.
- UOB and ICBC are the best options for foreign investors to finance their condominium purchase in Thailand. It does not matter if the investor live in Thailand or not. However, the nationality of the buyers is one of the main criteria for banks to consider the loan approval.
- MBK Guarantee is not a bank, but a lending institution your property in Thailand as the collateral
- For foreign buyers taking mortgages in Thailand, the conditions for interest rates, loan-to-value (LTV), and payback period is less attractive compared to Thai buyers
- Consult our property specialists and/or your lawyer before making property purchase decision in Thailand
- Learn how to own a condominium or apartment unit legally as a non Thai citizen.
