You have decided to move to Thailand. Once you arrive you will start working or opening a business in Thailand to be able to provide for yourself and your loved ones. However, we will debate another topic today. One is about getting your own home in Thailand. One of the questions on everyone’s mind is: Can a foreigner get a mortgage in Thailand or not?
Having your place to call home is something we all desire. Some say it is better to get a home loan for foreigners in Thailand than pay rent. Some people are worried about mortgaging their goods, especially in a new country. Therefore, we will discuss all the relevant information you need to know about before consulting with a bank.
J&E Concierge values the stability and safety of all foreigners arriving in Thailand. We are always available to help you with information or updates regarding laws and regimentations. Contact us now!
General criteria for a home loan for foreigners in Thailand
What is a mortgage? It is a contract between two persons or a person and an institution, such as a bank, where the mortgagor assigns his property as a security of paying back an obligation or a debt. It has become one of the most used types of home loans for foreigners in Thailand. Those who have stable jobs and stable income chooses this method to purchase a house.
Firstly, you will need to understand the general criteria that apply to all foreigners who want to apply for a mortgage in Thailand. The good news is that foreigners can indeed access mortgage loans in Thailand. However, you have to fulfill one of these criteria:
- working in Thailand legally, under a work permit for at least 1-2 years, and with a stable income before your mortgage application
- have dual citizenship, one of them being Thai citizenship
- an advantage is holding a Thai residency permit
These mentioned above are not obligatory. However, falling into one of these categories gives you an advantage. Otherwise, your options as a foreigner to get a loan in Thailand become more limited.
The mandatory criteria may vary from bank to bank but generally fall under the following requirements:
- be of age between 21 to 55 years old
- good credit score
- stable income with a minimum of 80,000 THB – 140,000 THB
- interests rates are higher for foreigners compared to interest for Thai citizens
- the payback period is a maximum of 15 years
- 30% – 40% value of the property as a down payment and 70% – 60% borrowed from the bank
- the property must be finalized and be located in Bangkok or selected areas
What type of property can a foreigner buy with a mortgage in Thailand?
Once you read and understand the criteria for eligibility for a home loan for foreigners in Thailand, you also need to know what type of property you are allowed to own. We have mentioned before in previous articles that foreigners are not allowed to own land in Thailand. It is a measure imposed by authorities to ensure that all land stays within Thai families and maintains its national and cultural heritage.
Therefore, as a foreigner, you will not be allowed to buy a house as it also has the surrounding land coming with it. However, you are allowed by law to buy and own a condo or several condos in Thailand. The limitation is that you are not allowed to own more than 49% of the units within a building. Also, if you are married to a Thai citizen you can act as a guarantor of the credit but the property will not be owned directly by you.
Through which banks can a foreigner get a mortgage in Thailand?
Are you interested in which banks could offer you a mortgage? J&E Concierge can help you prepare the documents required by the bank and guide you with all you need to do to get a home loan for foreigners in Thailand.
- United Overseas Banks (UOB)
It is a multinational bank that provides international home loans to foreigners in Thailand. Financially, foreigners are required to have a salary of a minimum of 140,000 THB and at least 2 years of working time. The payback period is up to 30 years and the value of the loan can reach up to 70% value of the property.
- Industrial and Commercial Bank of China (ICBC)
It is a multinational state-owned bank. Their conditions for home loans for foreigners in Thailand state that the amount of the credit should be between 1.5 – 15 million THB, the payback period varies between 3 to 15 years and the property must be located in Bangkok, Pattaya, or phu*ket.
- MBK Guarantee
It is a Thai lending institution that has different requirements than the banks mentioned before. It requires you to already have a property to use as a guarantee for the new mortgage loan. The payback period is up to 10 years. However, it is considered to be a friendly institution with foreigners who need a mortgage in Thailand. It takes into account the revenue you may have in other countries than Thailand, as a reference.
Can a foreigner get a mortgage in Thailand with the help of J&E Concierge?
Although J&E Concierge cannot guarantee you the answer to the question “Can a foreigner get a mortgage in Thailand?” will be a favorable one concerning the bank, we can provide you with the existing information at the moment. Also, if you decide to take this step and buy a property in Thailand, we will help you prepare all your documents and guide you through the process.