Paradise Within Reach: Can Foreigners gain property loan in Thailand?

Imagine waking up to the gentle sound of waves crashing against the pristine shores, surrounded by lush tropical landscapes and vibrant culture. Thailand, the land of smiles, has long been a magnet for wanderers seeking paradise. But what if we told you that paradise could be within reach, not just as a fleeting vacation but as a place to call your own? Yes, you heard it right. Foreigners can now unlock the doors to their dream homes in Thailand, thanks to the possibility of securing property loans. In this blog post, we'll dive deep into the exciting realm of property ownership for expats, uncovering the secrets, opportunities, and challenges that come with financing your slice of Thai bliss. Get ready to embark on a journey that could lead you to a life of serenity and fulfillment in the heart of Southeast Asia.

Is it possible for foreigners to get property loan in Thailand?

To answer the question as to whether or not it is legally possible for foreigners to secure a property loan in Thailand, the short answer is YES. However, please take note that some terms and conditions will apply.

Foreigners will be able to secure a property loan in Thailand if they fall into one of these categories:

• Having worked in Thailand, under a work permit, for a year or two with a stable income.
• Holding Thai Permanent Resident (PR), as PR holders may be able to get more loan options with less strict terms & conditions.
• Having a Thai spouse. You will be able to take a loan by acting as a guarantor. However, be warned that you will not be granted ownership right to the property.
• Foreigner holding Thai citizenship through dual citizenship.

Terms & Conditions

Generally-speaking, the following are the mandatory conditions for foreigners securing property loans in Thailand (which may vary depending on the bank):

• Age between 21 – 55 years and not exceeding 60 years by the end of tenor
• Work permit holders with at least 1-2 years of employment in Thailand might qualify.
• Possessing good credit score and a minimum stable income of at least 80,000-140,000 baht monthly.
• Property must be a completed project within Bangkok or selected areas in Thailand.
• The loan term is usually capped at 15 years (some banks offer up to 30 years).
• Expect a maximum loan-to-value (LTV) ratio of 60-70%, meaning you'll need a down payment of 30-40%.

What type of property can a foreigner buy with a mortgage in Thailand?

Once you have understood the terms and conditions, you will then have to know what kind of property you are allowed to buy in Thailand as a foreigner. First in foremost, foreigners are prohibited from completely owning land (for instance, villas and townhouses). Fortunately, foreigners are allowed to buy a condo, provided that they abide by the 51/49 condo unit ownership ratio rule (the latter of which being the percentage in which foreigners are allowed to own up to).

Read More:

Banks that provide mortgages to foreigners

United Oversea Banks (UOB)

UOB provides international property loans for a multitude of countries including Singapore, Malaysia, Japan, Australia, the UK, and Thailand.

The following are UOB's foreign property loan conditions in Thailand:

• The property must be located in Bangkok or selected upcountry areas.
• Only available for investment and residential purposes.
• Loan-to-value (LTV) amount of up to 70% of the government appraised value or purchase price (depending which is the lower of the two).
• Currency of Loan: Singapore Dollars (SGD) or US Dollars (USD).
• The maximum loan repayment period is 35 years or up to 75 years old at the end of the loan tenor
• For expats working in Thailand under a work permit, the minimum salary for the applicant should be 140,000 THB and with at least 2 years of working time under the work permit.

Learn More:

Other Thai Banks

Other local Thai banks also offer mortgages to foreigners married to a Thai spouse. A stated before, foreigners will only be able to act as guarantor and will not be legally able to own the property due to the contract being under the Thai spouse's name.

On the other hand, foreigners will be able to get relatively attractive interest rates and conditions as Thai nationals. In most cases, both the Thai spouses and the Foreigners have to be working professionals with stable income and good credit records.

MBK Guarantee

MBK Guarantee is a Thai lending institution which, unlike usual Thai Banks and their foreign property loan terms & conditions, will require one to own a property prior to taking a loan to finance another property. MBK Guarantee also does not have restrictions on nationality, work permit, and marriage to a Thai spouse. All in all, MBK Guarantee is regarded as the N.O.1 foreigner-friendly mortgage option in Thailand.

The following are MBK Guarantee's foreign property loan conditions in Thailand:

• Property must be located in Bangkok or selected key areas.
• Loan amount of up to 1M baht.
• Loan-to-value (LTV) amount of up to 50% of the government appraised value or purchase price (depending which is the lower of the two).
• Loan currency: THB.
• Payback period of up to 10 years.

Learn More:

Conclusion

In the enchanting realm of Thailand, where crystal-clear waters meet golden sands and ancient traditions coexist with modern allure, the dream of owning a piece of paradise is no longer confined to the realms of fantasy. As we've journeyed through the intricacies of property ownership for foreigners in Thailand, we've discovered that the answer to the question is a resounding yes. With the right knowledge, preparation, and guidance, foreigners can secure property loans and embark on a life of serenity and fulfillment in this tropical haven. So, don't let your dreams fade away. Take the leap, navigate the legal landscape, and seize the opportunities that lie within reach. Thailand beckons, ready to welcome you with open arms to a world where paradise truly becomes your own.

Find your ideal property, available for sale or rent in the best prices possible, or list your property for sale or rent here. Alternatively, if you have any further questions, please get in touch with us: