Mortgages for foreigners do exist in Thailand, but getting one is very difficult as you need to comply with a wide variety of criteria in order to pass. Firstly, a mortgage can only be issued to people who are officially working in Thailand with a minimum contract of 2-years, or those who own a legitimate business outright. Remember, mortgages are not issued for those on tourist visas.
What are your options for getting a mortgage in Thailand?
If you are looking to invest in property in Thailand, and would prefer to pay in instalments, it is an option offered by most developers. For example, if you were to invest in a property in The Origin Sukhumvit, there is a chance that you may be able to negotiate an instalment investment with the developer – though it is not always guaranteed.
How do instalments work?
If you are unable to make the full advance payment for your property in Thailand, developers may offer you payment by instalments. The terms and conditions of the agreement will vary from one developer to the other – including what the construction stage is currently at.
Here’s an example of what it might look like:
- Initial payment for apartment reservation: between $3,000 and $5,000 USD.
- First payment due within 1-month of reservation: 20-30% of total apartment cost.
- Payments due at construction completion and finishing & furnishing stages: typically, 20% of total apartment cost.
- Final payment due upon registration of ownership: 5 to 10%.
Depending on developer and project development stage, these instalments may be made over a 1 to 3-year period. For projects that have been completed, payment terms tend to vary from 6-months to 1-year.
Please bear in mind that these are just examples of what an instalment payment agreement might look like. The developer could ask for 80-90% upfront, whereas others may be more open to smaller payments over a longer period.
Do your research and make sure that you have proper legal representation and a reputable real estate agency negotiating for you.
Banks and typical interest rates
As for getting a mortgage / property loan through a bank, the rules are a little different. Depending on your situation, the following banks offer mortgages to foreign investors:
- Bangkok Bank
- Bank of Ayudhya
- Kasikorn Bank
- Siam Commercial Bank
- Thai Military Bank.
Mortgages in Thailand can be issued for the following types of property:
- Commercial properties.
Bear in mind that if you are looking to purchase property as a foreigner in Thailand, there are laws that restrict ownership. Again, do your research and seek proper legal representation to ensure that everything is above board.
Mortgage conditions for those who work or own business in Thailand are as follows:
- Interest rates vary in different banks from 6 to 10%.
- The crediting period does not exceed 10-years.
- Initial instalments for apartments are generally 40%, with villas at 30%.
- Borrowers cannot be over the age of 60.
- Monthly payments are required.
- Application will require all relevant documentation, including passport and visa information.
Yes, it is entirely possible for foreigners to get a mortgage in Thailand, however, there are strict rules that one must adhere to. That being said, with plenty of effort, research, and the proper legal assistance, you shouldn’t run into too many problems.