Loan Options for Buying a Condo in Thailand

Although it isn’t impossible to get a loan from a Thai bank as a foreigner, it can be difficult and approval is not guaranteed, even if you have lived in the Kingdom for a long time or have a high monthly salary.

But there are still options. Let’s take a look.

The first is to look at a bank such as UOB or Bangkok Bank, which have branches overseas, and ask whether overseas property financing is available in your market. If it is, the mortgage may be issued in USD or another foreign currency and then transferred to Thailand. The downside to this method is that you may pay higher interest rates and often have to pay a large deposit, sometimes around 50%.

The next is to look at getting a loan from your home country. With some lower-priced condos starting at around THB1 million, it could be possible to get a personal loan or remortgage another property you have. The likelihood of being accepted depends on your credit history and your bank’s rules, but it is a viable choice, with many banks lending up to a percentage of the appraised property value.

The final viable option is to speak to the developer and see if developer financing or an instalment purchase plan is an option. These arrangements usually work where regular payments are made totaling the final amount, at which point the condo is then registered under the buyer’s name. This means you are, in theory, renting the property until all payments are made.

Bear in mind, though, that if you want the condo registered under the foreign freehold quota, the Land Office will usually require evidence that the purchase funds were brought into Thailand in foreign currency, withdrawn from a foreign-currency account, or withdrawn from a non-resident baht account, as required under the Condominium Act.

For foreign-currency remittances of US$50,000 or more, banks issue a Foreign Exchange Transaction form; for smaller amounts, bank credit/debit advice or a bank letter is commonly used. As an example, a foreign engineer working in the gas industry in Thailand but paid offshore can then remit this to Thailand on a monthly or quarterly basis to the developer.

In addition, you may have a better chance of getting a loan if you have permanent residence status or have a wealthy Thai guarantor with a long history at the bank.