Financing for Foreigners in Thailand

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Financing for foreigners

Everything you need to know

IMPORTANT NOTE: Sense Property Group is not a lender. The content on this page only aims at informing potential buyers of financing options for
condominiums in Thailand.

How Foreigners can finance their dream home in Thailand

Property loan facilities, also known as mortgages*, are common practice in Thailand, yet it is only since the mid- 2000’s that foreigners willing to purchase condominium units in Thailand have had access to bank funding.
The country of residence is not a condition of eligibility – you can get funding whether you reside in Thailand or not as long as they are in the “eligibility list”, however, the requirements are quite tough to match and the interest rates are significantly higher than in western countries.
* A mortgage is an agreement by which a bank i) lends money at interest to finance the purchase of a property and ii) keeps the title deed of the debtor's property until full repayment of the debt by the borrower. The property financed is usually the collateral of the mortgage. If the borrower is unable to repay the loan, the creditor keeps the property.

UOB (Union of Overseas Banks) is the only reliable option for foreigners

A Singaporean bank with several branches in Bangkok and new headquarters inaugurated in Phrom Phong near Emporium and Emquartier, UOB offers loans to property investors residing in selected countries (see list below) and Thailand or Singapore for the purchase of condominium units exclusively. Many of our clients have already been using the services of this solid financial institution, reputed for its professionalism and reliability. Although the funds originate from Singapore, borrowers can apply for a mortgage directly at a Thai branch of UOB. CONTACT US for more information about this service and/or to be put in touch with UOB professionals.

 

The criteria of eligibility are indicated below (update as of 10 February 2024)

  • All nationalities aged 21 - 65 years
  • Minimum income of SGD 100,000 p.a. or equivalent
  • Minimum income of SGD72,000 p.a. with work permit in Thailand
  • Source of income in the following countries (where UOB branch/office presence): Australia, Brunei, Canada, France, Hong Kong, Macau, India, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam, UK and USAs

Key Requirements :

  • Residence in Thailand : Registered at the consulate, Thai address in passport, Alien Registration Book, Permanent Residence Book (at least one of the above)
  • Work in Thailand (at least 1 year) : Permanent job, work permit, letter of employment contract OR business registration (if self-employed)
  • Stable and sufficient income earned in Thailand (fixed income > 3 times each installment repayment : Pay slips, letter of employment, bank statements, tax document or any other evidence of income earned in Thailand
  • Complete information on the condominium purchased : Unit title deed, sale and purchase agreement (SPA), foreign quota available

Good to know

MAIN CONDITIONS OF MORTGAGES FOR NON-THAI CONDOMINIUM INVESTORS BY UOB (INDICATIVE, LAST UPDATE MAY 2017)
- Loan-to-value of 50 to 80% (=ratio amount lent by the bank / valuation of the condo by the bank, based on the value of the property estimated by the bank)
- Floating interest rate of 6.5 to 9% (indicative levels based on history between 2015 and 2024) based on a fixed rate + a floating rate indexed on foreign currency
- Tenor up to 10 years
- Progressive amortizing of the loan (constant monthly payments of capital + interest)

UOB also provides financing to foreigners with stable income outside Thailand - for the purchase of condominium units only.
This service has become very popular among foreign investors residing and working in Singapore, Kuala Lumpur and Hong Kong, who account for a growing part of condominium investors in Bangkok but also in Phuket and Koh Samui.


For foreigners living in Thailand but who are not eligible to regular mortgages by UOB because they don’t have a work permit and a stable income in Thailand, MBK Guarantee is the only option available in the market. Having offer “foreigner friendly mortgage finance options” since 2014, this lender offers a loan-to-value up to 50% and tenor up to 10 years, for any freehold condominium purchase. Interest rates are higher than with UOB (circa 10%)

CONTACT US for more information about this service and/or to be put in touch with MBK Guarantee professionals.

 

Over the last few years, we have seen a new type of lender entering the Thai condominium loan market - large western banks.

These banks only lend to investors of the same country of origin, and the mortgage is not on the property purchased in Thailand but on assets held in the country of origin – this is called “collateral mortgage”.Not only requirements are usually not as strict as they are for mortgages from UOB and MBK Guarantee, but also the conditions of the mortgage are significantly more attractive.

CONTACT US for more information about the banks offering this service.

Conclusion

  • UOB is the best option for most foreign investors to finance their condominium purchase in Thailand, whether they live in Thailand or not. Although rates are higher and tenors shorter than in western countries, it is a valuable option for foreigners who need to finance part of their investment.
  • MBK Guarantee is a new lender worth considering if you don’t have a work permit and a stable income in Thailand
  • Recently, some foreign financial institutions have been offering mortgages in their country of origin for the purchase of condominium units in Thailand, at much lower interest rates than for a mortgage in Thailand.
  • Consult our property specialists and/or your lawyer before any decision regarding mortgages for foreigners in Thailand

    CONTACT OUR TEAM OF EXPERTS FOR MORE INFORMATION

Checklist for buying a condomium

Thailand has made it easy for foreigners to purchase a condiminium but there is still a definite process to follow. Make sure you are aware of the necessary steps and requirements will avoid many inconvenience.
READ OUR CHECKLIST >

Tax regime for condominiumns

During the purchase processing, there will be some compulsory taxes to pay to the relevant department before you can become the legal owner of the chosen property. Our experts have gathered some valuable information to help you understand better the whole process.
MORE ABOUT THE TAX REGIME >