Mortgage conditions for real estate in Thailand

Mortgage lending in Thailand

Becoming increasingly popular among foreigners, despite the complexity of the procedure for obtaining a loan. There are many banks in the country that provide mortgage loans, but not all of them have the the ability to serve non-residents. Nevertheless, foreigners working officially or owning a business in Thailand, have the opportunity to get a mortgage. in Thailand are able to obtain a mortgage loan.

Banks offering mortgage loans

Among such banks, Siam Commercial Bank, Kasikorn Bank, and Thanachart Bank stand out. Each of them has its unique features and advantages, so the choice of bank depends on the borrower's needs.

Main criteria for mortgage lending

• Borrower's age:Not exceed 60 years of age at the time of loan repayment.
• Loan amount:up to 70% off the price of houses and villas, and up to 60% for apartments in condominiums.
• Loan term:from one to ten years.
• Interest rates:between 6% and 10% per year, depending on various factors.

Despite the challenges associated with the mortgage process in Thailand, it is still possible for foreigners interested in purchasing property in this amazing country.

Obtaining an international mortgage: important points

Experienced real estate agenciesanddevelopershelp with mortgage loan, but the final decision is up to thebank.

Russians looking to take out a mortgage abroad need to considertax on material benefitand possible differences in rates.

Foreign citizens in Thailand

• You need to provide: a foreign passport, a work permit, a bank statement, and a letter from your employer.
• The decision on the application depends oncredit historyand other factors.

Foreign citizens with businesses in Thailand

• It is necessary to present the company's founding documents, account statements from foreign and Thai directors, as well as the company's audit.
• The business has been operating for over two years, and an active approach gives the bank a better chance to provide support.approval for mortgage.

Additional expenses when getting a mortgage in Thailand:

• Stamp duty- 0.05% of the loan amount.
• Mortgage fee- 1% of the loan amount.
• Opening fee- 0 to 2% of the loan amount.

Interest-free installment program in Thailand:

• Installment termsThey depend on the developer and the stage of the project.
• Initial paymentis usually between 30% and 50% of the total amount.

Advantages of the installment program:

• No interest on the contract.
• Simplicity of the process without complicated paperwork.
• The option for installment payments for the entire construction period.
• Flexible payment schedule.

Disadvantages of the installment program:

• High monthly payments compared to a mortgage.
• A limited installment period for the cost of constructing the facility.

Payment Scheme

Under such conditions, the payment scheme usually looks as follows: the initial payment is 40% of the total cost (upon signing the contract), the second payment is 10% (at the foundation construction stage), the third payment is 20% (when the walls are being erected), the fourth payment is another 20% (upon completion of the walls and foundation, and the start of interior finishing), and the fifth payment is 10% (after the property is registered).

Developers usually set strict conditions for the first payment, but they are flexible in adjusting the schedule for subsequent payments until the project is completed.

Installment plan for foreigners

Foreign buyers are usually offered installment plans using Thai Baht (THB) as the currency, with the possibility of obtaining up to 70% of the total cost of the property. The terms of the installment can vary - from several years (for properties under construction) to one year (for completed properties), and the repayment schedule is set individually.

Mortgage assistance

If you are interested in purchasing residential or commercial property in Thailand through a mortgage, please leave a request on our website. Our partners in Thailand will help you find suitable properties based on your preferences and provide comprehensive support on all matters related to financing for foreigners.

We thank Dmitry Frolov, the CEO of Alpina Property Co. Ltd., for his assistance. The author of the article is Olga Petegirich. The photographs are provided by Thailand Discovery.

Mortgage conditions for real estate in Thailand

Mortgages in Thailand are very popular among the local population due to the lenient requirements for borrowers from banks, as well as relatively low interest rates. It is more challenging for foreign citizens to obtain a loan for purchasing property in the Kingdom, but it is still possible; however, one must meet certain criteria to do so.

Large banks in Thailand

• Bangkok Bank
• Krungthai Bank
• Siam Commercial Bank
• Kasikorn Bank
• TMB Bank
• Bank of Ayudhya
• Thanachart Bank

Typical mortgage conditions for foreigners

• Currency of the loan:Thai Baht (THB)
• Loan amount:Up to 70% of the property's value (houses and villas), up to 60% of the property's value (apartments in a condominium).
• Mortgage term:From 1 to 10 years

Documents to apply for a mortgage in Thailand

For foreign citizens working in Thailand:

• Passport(foreign, with a valid work visa)
• Work permitwork permit
• account statementfrom the local bank for the last 6 months or 1 year

For foreign citizens who own a business in Thailand:

• Passport(foreign, with a valid work visa)
• Work permitwork permit
• Statement of personal accountin the local bank for a foreign director for 6 months or 1 year

Conclusion

A mortgage in Thailand can be a great way to purchase real estate for both locals and foreigners. locals and foreigners alike. However, it is important to thoroughly research the terms and requirements of the banks and and be prepared to provide all the necessary documents to successfully obtain a loan.