Believe it or not, it’s possible for foreigners to receive a home loan in Thailand. Before you get too excited, there are a few caveats. For starters, these mortgages only cover condominium units. Also, the interest rates aren’t great. Finally, you are expected to put down a deposit of at least 30 percent of the property’s value and sometimes more.
However, if those aren’t a concern, some financial institutions are willing to offer you a loan. Here are a few basics you’ll want to know:
- These loans do not require a Thai work permit or permanent visa
- Open to most nationalities
- Interest rates vary and you should contact each bank for details
- You will be responsible for several fees
- Only covers condo units
With that out of the way, here are the banks where it’s possible for foreigners to receive a home loan in Thailand.
Related: 4 things to know about Thailand property investment in 2023
UOB
Singapore-based UOB (United Overseas Bank) has an international loan program that allows an individual to obtain a loan for property in Malaysia, Japan, Australia, the United Kingdom and Thailand.
In the Kingdom, you can apply for a loan, but it can only be used to purchase freehold condo units priced between THB3 million and THB50 million. UOB will loan you up to 70 percent of the purchase price while you are expected to cover the remaining 30 percent.
There aren’t many requirements to apply for this loan. Applicants must be at least 21 years old and no older than 65 when the loan term ends. The minimum income requirement for those residing outside of Thailand is USD85,000 annually while foreigners holding a work permit in Thailand only need to make USD60,000 per year. Australian and Japanese nationals are ineligible to apply.
MBK Guarantee
Thailand-based MBK Guarantee can provide financing to international clients, although its terms are a little different than UOB. Firstly, you might be wondering if MBK Guarantee has anything to do with the famous MBK shopping mall in Bangkok. Both are part of the MBK Group, a massive conglomerate that does a little bit of everything.
As for the loan, MBK Guarantee will only cover 50 percent of the property value meaning you will need to put down the other half in the form of a deposit. The minimum loan amount is THB1 million while repayment terms can be anywhere from one to ten years. The company only considers loan applications from individuals who won’t be more than 70 years old at the end of their contract.
The one downside with using MBK Guarantee is that they will only provide mortgages for condos on their approved projects list. Click here to see the full list.
Final Thoughts
Citizens of China and Hong Kong can apply for a mortgage through ICBC Bank Thailand. There are a number of restrictions which you can read about here. It should also be noted that Bangkok Bank has ended its program that allowed foreigners to receive a home loan in Thailand.
All things considered, the MBK Guarantee and UOB programs are solid alternatives for those not wanting to tie up a bunch of capital. Of course, you do pay for that luxury through uncompetitive interest rates. Ultimately, you must weigh the pros and cons of each option before making a decision.
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