Mortgage in Thailand: interest rates for foreigners

There are challenges and opportunities to get a mortgage in Thailand as a foreigner. Thai banks are focused on residents but some financial institutions/developers provide financing solutions to non-residents.

Bank Mortgages for Foreigners

Conventional Thai banks often restrict mortgage services to those with residency. However, some banks allow foreigners not residing in the country:

• Usually, lenders charge foreigners higher interest, as the lenders are taking greater risk.
• Foreigners usually have lower loan-to-value (LTV) ratios, typically limited to 50-70%.
• The length of a loan typically falls within a 1- to 30-year range, depending on the borrower’s financial profile and lender policies.

Developer Financing

For Thai property buyers, many property developers also offer direct payments. Most interest rates vary between 3% and 7% annually, depending on the length of the installment. The structure can spread for up-to 5 years after construction. Typically, buyers pay a large part of the price upfront, during completion, and the rest in the time agreed upon by both parties.

Implications for Foreign Buyers

• Property Type. Foreigners can usually get freehold condos. Other types of property may be subject to restrictions.
• Currency. Special financial provisions must be made during ownership transfer, as loans can only be purchased in foreign currencies.
• Eligibility. Evidence of a steady income, a clean credit report and compliance with age restrictions (usually 21 to 65 years) may be among the requirements for lenders. Institutions have different minimum income thresholds and other criteria.

Despite certain complications, foreign nationals can secure mortgages in Thailand through banks and developer financing. Potential buyers are encouraged to do their research, shop, and speak to financial advisors to find the right financing option for their needs.

For personalized guidance, DDA Real Estate specializes in helping foreigners navigate the complexities of obtaining a mortgage and buying property in Thailand, offering tailored advice and support every step of the way.