If you are unable to pay for a property outright, then you may be looking for a home loan with local financial institutions. The good news is that loans are available for foreigners who meet the right criteria and here are more information about the process, the interest rates and the terms for mortgages and loans for foreign investors.
Foreigners in Thailand are permitted by law to get a mortgage to purchase a property, however, they will need to meet certain criteria in order to qualify, and the long term residency is one of the key requirements to get a loan for a real estate project:
Other criteria that need to be met for personal loans for foreigners in Thailand include:
Foreigners will be granted the same mortgage interest rates as Thais and obviously, the rate you will be offered will be according to what is available at that time. There is considerable competition in the Thai loan market, so it makes sense to shop around to get the best rate for you.
The amount granted will depend largely on your personal income and other factors. Thai lenders will typically carry out a valuation of a property themselves before approving an amount.
A home loan for foreigners in Thailand will typically be granted for 10, 20, or 30 years. However, factors such as the foreigner’s age will restrict how long a mortgage period can be.
Foreigners are permitted to have their own limited company to run a business in Thailand and while they would need to meet certain criteria, one of which is that they cannot own more than 49% of the shares, they are permitted to own more shares than anybody else. Therefore, setting up their own Thai limited company is a relatively common method that foreigner’s use to buy land in Thailand.
Foreigners are not permitted to own land in their own name, but they are permitted to own land in their company’s name. The foreigner will then own the land for as long as they own the company. A foreigner in Thailand is also able to use a Thai limited company to get personal loans. Obviously, the company itself will need to meet certain criteria, particularly being in a financial position to repay the mortgage.
For a foreigner to be granted a mortgage through a Thai limited company, they and their company will need to meet the following criteria.
If you do not meet the criteria determined by the banks, you might still be able to get a mortgage with a local lending company and this is also an option for foreigners whose source of income comes from overseas.
One example of a local lender giving personal loans for foreigners in Thailand is MBK guarantee. They do not require a work permit, marriage certificates, or residency in order to grant a loan but the downside to this route is that the interest rates will be significantly higher than standard mortgage interest rates in Thailand. Indeed, the fixed rates through a local lender will likely be in the region of 8.75% to 9.07%, making the loan considerably more expensive.
Although the requirements of local lenders are less strict, they will still require you to meet some criteria: