Can foreigners to receive a home loan in Thailand? Believe it or not, it’s possible. 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. Before you send in that application, there are some important facts you should know:
- Thai work permit or permanent visa not required
- Open to many nationalities
- Interest rates vary
- You’re on the hook for other fees
- Only available for condo units
If you are okay with all those, here are the banks where it’s possible for foreigners to receive a home loan in Thailand.
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Here’s where foreigners can receive a home loan in Thailand
UOB
Singapore-based UOB (United Overseas Bank) has a program that offers foreigners a home loan in Thailand as well a s Malaysia, Japan, Australia and the United Kingdom.
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.
So, what about requirements to apply for this loan? There are a few. Firstly, 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. Finally, a few nationalities are ineligible to apply so be sure to check with the bank ahead of time.
MBK Guarantee
Thailand-based MBK Guarantee can provide financing to international clients, although its terms are a little different than UOB. But before we get to that, let’s answer a question many of you will have. Is MBK Guarantee connected to the famous MBK Center in Bangkok? Yes, both are part of the MBK Group, a massive conglomerate that does a little bit of everything.
With that out of the way, let’s focus on 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.
Other things to know
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. Another thing to note, Bangkok Bank has ended its program that allowed foreigners to receive a home loan in Thailand. You’ll find a lot of information on this online, but the program is no longer active.
Ultimately, the MBK Guarantee and UOB programs are solid alternatives for those not wanting to tie up a bunch of capital in overseas real estate. 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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