Non-Thai nationals find it difficult to obtain mortgages. However, if you are married to a Thai national, the process becomes relatively easy; but the mortgage will be held in the name of your spouse (Thai national).

Thailand is one of the prime locations for foreign nationals looking for lifestyle and investment property in Asia. But the limited amount of loan opportunities restrict foreign investors. There are only a handful of local loan providers and international banks that are worth contacting if you are seeking a loan to buy property in Thailand.

Before you apply, you need to understand the fundamentals of the application procedures and what documents are required to provide the financial institution.

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What are the mortgage procedures for a local?

Local financing is the best way for Thai nationals to avail loan for a variety of purposes. Local financing typically takes several forms and shapes and varies from business loans to credit cards and personal loans for medical treatment, buying property, education, and other use.

If you are a Thai local, getting a loan is fairly straightforward. The loan will be issued in your name. In case, if you are a foreigner but married to a Thai national, the loan will be issued in his/her name. There are numerous financial institutions who will give a mortgage loan. In specific cases, the flowing documentation is required as additional paperwork:

  • Marriage registration
  • Proof of address
  • Proof of steady income with business or employment in Thailand. Income earned overseas is also taken into account; however, the primary source of funds requires to be earned in Thailand.

What are the mortgage procedures for foreigners?

For foreigners with an income in Thailand, the loan options are even broader. You can approach several financial institutions, and if you succeed to fulfill the eligibility criteria, you will get the mortgage benefits almost like a Thai local.

Mortgage procedures for foreigners with an income in Thailand:

  1. You need to be registered as a Thai resident. Here, you will require showing documents including Permanent Residence Book, Alien Registration Book, and Passport.
  2. Next, you need to show Proof of Work in Thailand. You need to be earning an income in Thailand for a minimum period of one year. You must possess a registered business or boast a permanent job in Thailand to avail the loan. Here, you will require submitting documents including Letter of Business Registration or Employment, Work Permit, and other documents if you are self-employed.
  3. Sufficient income to repay the loan. Your income must be three times more than the monthly loan repayment cost. You are required to submit documents that prove the income earned is in Thailand. That includes Tax Filing Documents, Bank Statements, and Pay Slips, among others (depends on the financial institution).
  4. Information on the property or condo purchased. You need to provide documents concerning Proof of Foreign Quota Availability, the Sale and Purchase Agreement, and a copy of the Title Deed.
  5. The financial institution will also review your credit score. You need to pass the credit check. Moreover, your age combined with the loan repayment tenure must not exceed 60 years. For example, if you are 30 years old, you can have a maximum loan repayment period of 30 years.  

Mortgage procedures for foreigners without an income in Thailand:

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Financing options are limited for foreigners without an income in Thailand. However, with Thailand’s property market opening up to foreign investors, the procedures have become lenient, and there are more financial institutions coming forward offering loans to foreign investors giving them the opportunity to invest in properties in Thailand.  

The eligibility criteria for approving the mortgage differs from bank to bank as different financial institutions require different documentation and offer loans at different rates. This makes things a little complicated for foreign investors without an income in Thailand to avail mortgage loan.

Even if the loan is granted to a foreign national, the offered may only cover half of the sales price of the condo. However, if additional funds are required, the financial institution may offer up to 70% of the sales price given that a steady income can be proven.

The interest rate varies from bank to bank and will depend on the loan amount, loan tenure, and the financial institution’s Minimum Lending Rate (MLR).   

What can Foreigners Buy?

As per the 1979 Thailand Condominium Act, foreigners are allowed to own a condominium (or multiple condos) in Thailand. However, foreigners are only allowed to own  49% of single condominium units.

On the other hand, foreigners are not allowed to own a house in Thailand as owning a home means owning land in the country, which is not permitted to a foreigner.