Getting a Mortgage Loan

Information about the process of acquiring a mortgage loan in Thailand...

For those who are married to a Thai citizen, getting a loan is fairly straightforward. The loan will be in the Thai person's name and there are a number of banks who will give a mortgage loan. The following is usually required as well as additional paperwork in specific cases:

  • Marriage registration
  • The purchaser(s) must be able to provide proof of a steady income with employment or a business in Thailand. Proof of income earned overseas is taken into account but the main source of funds needs to be earned in Thailand
  • If the main income provider is a foreigner they must have held a work permit for a minimum of one year

If a loan is granted, the loan may often only cover half of the sales price; if additional funds are needed, up to 70 percent can be processed if a strong income can be proven. Interest rates will depend on the bank's Minimum Lending Rate or MLR.

Those not married to a Thai citizen will find it very difficult to get finance in Thailand to purchase property. However, a number of banks will lend to foreigners buying condominiums, as the title is secure.

Seller assuming the mortgage

It's possible for the seller to finance the purchase in part or entirely, depending on what is negotiated. This is a private arrangement between buyer and seller that sometimes occurred because foreigners historically had great difficulty in obtaining a mortgage.

The owner sells the house to the buyer, but only receives a certain percentage of the amount. The rest will be paid on a monthly basis plus interest. The exact terms are all open to negotiation. Until the money has been completely paid the land title will still be in the original owner's name.

If both parties agree on this course of action, the purchaser must be absolutely certain that the seller is indeed the owner and has legal authority to sell the home or lease the land. A title search will list the legal owner(s) of the property. Make sure that all documents and agreements are notarised.

Further Information

  • Samuiforsale: detailed information on issues related to owning property and building in Thailand
Prepared by Graeme Laird