Can foreigners get a property loan in Thailand?

Foreigners can get a property loan in Thailand, but the process can be complex and there are certain restrictions in place.

First, it is important to understand that as a foreigner, you will not be able to own land in Thailand. The Land Code of Thailand states that only Thai nationals can own land in the country. However, there are ways for foreigners to gain long-term use of land through a leasehold agreement or through a company structure.

One option for foreigners looking to purchase property in Thailand is to set up a Thai limited company. In this case, the foreigner would be a major shareholder in the company and would have the right to use and occupy the property. However, it is important to note that the company must have at least 51% Thai ownership and the foreigner’s name cannot appear on the land title.

Another option is to enter into a leasehold agreement with the landowner. This can be for a period of up to 30 years, with the possibility of two 30-year extensions. Under a leasehold agreement, the foreigner would have the right to use and occupy the property for the duration of the lease, but the land would still be owned by the Thai national.

Once a foreigner has established a way to use the land, they can then apply for a property loan from a Thai bank. However, the process can be difficult and the requirements can be strict. Banks typically require a significant down payment, which can be as much as 50% of the property’s value. They may also require proof of income, a good credit history, and a valid work permit. Additionally, interest rates for foreign borrowers are often higher than for Thai nationals.

It is also worth noting that some banks may not be willing to lend to foreigners at all. Therefore, it is essential to do your research and shop around to find a bank that is willing to work with you.

General criteria for foreigners taking a property loan in Thailand in points

  • Foreigners cannot own land in Thailand, but can gain long-term use of land through a leasehold agreement or through a Thai limited company where the foreigner is a major shareholder.
  • Banks typically require a significant down payment, which can be as much as 50% of the property’s value.
  • Banks may also require proof of income, a good credit history, and a valid work permit.
  • Interest rates for foreign borrowers are often higher than for Thai nationals.
  • Some banks may not be willing to lend to foreigners at all.
  • It is essential to have a good understanding of the laws and regulations surrounding land ownership in Thailand and to thoroughly research your options before applying for a loan.

Banks and institutions that provide mortgages to foreigners in Thailand

There are a number of banks and financial institutions in Thailand that provide mortgages to foreigners. Some of the major banks that offer mortgage options to foreigners include:

  • Bangkok Bank: This is one of the largest banks in Thailand and offers a variety of mortgage options to foreigners, including both fixed and variable rate mortgages.
  • Krungsri Bank (formerly known as Bank of Ayudhya): This bank offers mortgages to foreigners, but the loan amount is capped at 50% of the property value and the mortgage period is limited to 15 years.
  • SCB (Siam Commercial Bank): SCB offers mortgages to foreigners, but the loan amount is capped at 50% of the property value and the mortgage period is limited to 15 years.
  • Kasikorn Bank: This bank offers mortgages to foreigners, but the loan amount is capped at 50% of the property value and the mortgage period is limited to 15 years.
  • UOB Thailand: This bank offers mortgages to foreigners, but the loan amount is capped at 50% of the property value and the mortgage period is limited to 15 years.
  • TMB Bank: This bank offers mortgages to foreigners, but the loan amount is capped at 50% of the property value and the mortgage period is limited to 15 years.

what is MBK Guarantee for thai loan for property

MBK Guarantee is a mortgage guarantee program offered by the Government Housing Bank (GHB) in Thailand. This program is designed to assist Thai citizens in obtaining loans for the purchase of residential properties.

Under the MBK Guarantee program, the GHB will provide a guarantee for a portion of the loan amount. This can help to reduce the risk for the lender and make it easier for borrowers to qualify for a loan. The guarantee can also help to lower the interest rate on the loan, making it more affordable for the borrower.

The program is specifically aimed at low and middle-income Thai citizens who may not have a large down payment or a high credit score. To be eligible for the program, the borrower must be a Thai citizen, have a valid ID card, and have a stable income. The property being purchased must also be located in Thailand and be intended for residential use.

The MBK Guarantee program can be used in conjunction with other government-backed housing programs such as the “First Home” scheme, which provides a subsidy of up to 100,000 THB for first-time home buyers.

It’s worth noting that MBK Guarantee program is only available for Thai citizens, so it’s not possible for foreigners to use it. Additionally, some banks may not participate in this program or have their own regulations for the program, Therefore, it’s always recommended to inquire and do proper research before applying for the loan.

Mortgages options for foreigners without income in Thailand ?

It can be challenging for foreigners without an income in Thailand to obtain a mortgage for a property. Banks and financial institutions typically require proof of income, a good credit history, and a valid work permit in order to approve a loan. Without these qualifications, it can be difficult to secure a mortgage.

However, there are a few options available to foreigners without an income in Thailand. One option is to find a co-signer or guarantor who is a Thai national with a stable income and a good credit history. This person would be responsible for making the loan payments if the borrower is unable to do so.

Another option is to consider purchasing a property through a Thai limited company, where the foreigner would be a major shareholder in the company and would have the right to use and occupy the property. However, it is important to note that the company must have at least 51% Thai ownership and the foreigner’s name cannot appear on the land title.

Another option is to enter into a leasehold agreement with the landowner. This can be for a period of up to 30 years, with the possibility of two 30-year extensions. Under a leasehold agreement, the foreigner would have the right to use and occupy the property for the duration of the lease, but the land would still be owned by the Thai national.

It is also worth noting that some banks may not be willing to lend to foreigners without an income at all. Therefore, it is essential to do your research and shop around to find a bank or financial institution that is willing to work with you.

In summary, it can be difficult for foreigners without an income in Thailand to obtain a mortgage. However, there are a few options available, such as finding a co-signer or guarantor, purchasing a property through a Thai limited company, or entering into a leasehold agreement. It is important to thoroughly research your options and find a bank or financial institution that is willing to work with you.

Summary:

  • Foreigners cannot own land in Thailand but can gain long-term use of land through a leasehold agreement or through a Thai limited company where the foreigner is a major shareholder.
  • Banks typically require a significant down payment, which can be as much as 50% of the property’s value.
  • Banks may also require proof of income, a good credit history, and a valid work permit.
  • Interest rates for foreign borrowers are often higher than for Thai nationals.
  • Some banks may not be willing to lend to foreigners at all.
  • Banks and financial institutions in Thailand that provide mortgages to foreigners include Bangkok Bank, Krungsri Bank, SCB, Kasikorn Bank, UOB Thailand, TMB Bank, foreign banks with a presence in Thailand, such as Citibank and HSBC, and specialized mortgage providers such as AIA and BBL Asset Management.
  • MBK Guarantee is a mortgage guarantee program offered by the Government Housing Bank (GHB) in Thailand aimed at low and middle-income Thai citizens.
  • For foreigners without income in Thailand, options include finding a co-signer or guarantor who is a Thai national with a stable income and a good credit history, purchasing a property through a Thai limited company, or entering into a leasehold agreement.

In addition to these banks, there are also a number of other financial institutions and mortgage providers in Thailand that offer loans to foreigners. These include foreign banks with a presence in Thailand, such as Citibank and HSBC, as well as specialized mortgage providers such as AIA and BBL Asset Management.

In summary, while it is possible for foreigners to get a property loan in Thailand, the process can be complex and there are strict restrictions in place. It is essential to have a good understanding of the laws and regulations surrounding land ownership in Thailand and to thoroughly research your options before applying for a loan. It is also important to be prepared for a significant down payment and to have a good credit history and proof of income.