Mortgage in Thailand: Learn More!

This is a question we get asked a lot about mortgages in Thailand. We have some good news and some bad news. Here’s the good news: Yes, foreigners can get a mortgage option for foreigners in Thailand to buy property in Thailand. So what’s the bad news? Well, it’s not easy.

Foreigners can only fully own Foreign Freehold condominiums. So, you can only get a mortgage in Thailand for a Foreign Freehold condo. That’s still okay, but you can only get a loan for a completed condo. Banks want to see the actual property, so off-plan projects are not an option. Also, you can’t get a mortgage option for foreigners in Thailand for property anywhere. Mortgages in Thailand are limited to “Bangkok and selected big provinces,” including Phuket.

So far, everything is still okay.

Here’s where it gets tricky. You need a valid work permit for at least two years and a monthly salary of at least 140,000 THB. You’ll need proof of employment in Thailand, like a Letter of Employment from your employer showing your job duration and monthly income. Banks will also ask for your payslips from the past two years.

What is a Mortgage?

A mortgage in Thailand is a type of loan specifically used to buy property, such as a house or condominium. Here’s a simple breakdown of how it works:

• Loan Agreement: You borrow money from a bank or lender to purchase the property.
• Property as Collateral: The property you buy serves as collateral for the mortgage in Thailand, meaning the bank can take the property if you fail to repay the loan.
• Repayment Terms: You agree to repay the mortgage in Thailand over a set period, usually 15 to 30 years, through monthly payments.
• Interest: You pay interest on the loan, which is a percentage of the mortgage in Thailand. The interest rate can be fixed (same throughout the loan term) or variable (changes over time).
• Down Payment: You usually need to pay a portion of the property’s price upfront, known as the down payment. This reduces the amount you need to borrow.

Why Do You Need a Mortgage in Thailand?

You need mortgage options for foreigners to help you buy property, such as a house or condo. Here’s why:

1. A mortgage in Thailand allows you to buy a property without paying the full price upfront.
2. You can spread the cost over many years, making it easier to manage your finances.
3. It helps you own property in Thailand, even if you don’t have all the money right now.
4. Buying a property can be a good investment, and a mortgage in Thailand makes it possible.
5. Successfully paying a mortgage in Thailand can help build your credit history in Thailand.

How to Increase Your Chances of Getting a Bank Loan in Thailand?

Here are a few tips that might help you get a home loan as a foreigner in Thailand Bank. If you already own property in Thailand, it can significantly boost your chances. Also, owning property in your home country that you can use as collateral can help.

Banks That Offer Loans to Foreigners in Thailand

Not all banks provide mortgages in Thailand to foreigners. Some well-known local banks, like Bangkok Bank, Thai Military Bank, and Siam Commercial Bank, do offer these loans. Global banks like HSBC and UOB (United Overseas Bank) also provide mortgages in Thailand to foreigners.

Each bank has different requirements and interest rates. Some might offer a home loan as a foreigner in Thailand for up to 50% of the property’s value, while others might go up to 70%. It’s important to compare all options to find the best terms for your needs.

Other Ways to Finance Property in Thailand

Getting a mortgage in Thailand can be challenging, but there are other ways to finance your property purchase without straining your budget.

For home loans as a foreigner in Thailand, most developers offer extended payment plans until the project is completed. Typically, you pay up to 30% of the property price within a month, and the rest is spread over 12 to 24 months, depending on the construction timeline. Many developers are flexible and can adjust the payment schedule to suit your needs.

Additionally, some reputable developers in Phuket offer low or zero-interest in-house financing. You can discuss these terms directly with the developer once you find a property you like. At Our Villas.co, we can recommend developers who offer financing and help negotiate terms that fit your financial situation.

Learn More about Mortgage in Thailand

So, can foreigners get a mortgage in Thailand? Yes, but it can be tricky. There are various ways to get financial help to buy property in Thailand, some easier than others. If you contact ourvillas, we’ll be happy to help you find the best way to purchase property in Thailand.

Frequently Asked Questions