Mortgage Bonds in Thailand
Thailand is a beautiful place to live in, with plenty of tourist attractions and investment opportunities. This has led to a huge boom in the property market, as more and more foreigners look for opportunities to buy personal property, either for personal use or as an investment. In their home countries, most foreigners will often be financed through a mortgage. However, this type of financing option is inaccessible to foreigners within Thailand. In recent years, the Thai government has made a slight shift in policies, to enable foreigners to access limited financing in pursuing such types of investments. The aim of this initiative is to encourage tourism and economic growth in Thailand. As a result, some Thai banks are willing to offer financing to foreigners. Naturally, it has certain conditions:
- The property has to be registered as a condominium. Under the Condominium Act, foreigners are only allowed to buy condominium units. Click here for more information.
- The property has to be registered under the foreigner’s own name.
The terms and conditions tied to a loan are dependent on the policies of the Bank of Thailand for each fiscal term and the bank’s policies. Thai banks will provide financing to foreigners through personal loans and business loans. While applying for a loan to buy condominium, it is important to remember that the value of the loan will be based on the condo’s fair market value which will be estimated by the bank’s evaluator. Foreigners will also be required to meet the following conditions, in order to qualify for a loan:
- A Thai resident permit or at least a one year work permit.
- Letter of employment indicating their total annual salary and years of service in the country.
- A proof of a stable and secure job.
- The applicant’s age combined with the loan duration must not exceed 60 years.
- Some banks may require the amortization period to be not to less than 7 years.
- Applicant’s fixed income should be three times larger than each instalment payment.
- Should be able to meet credit check standards.