Is it possible for a non Thai to get a property loan in Thailand?

[MALJR]

I am looking for a way to finance the purchase of a condo in Thailand. Has anyone been successful in doing this?

[KittenKong]

I've seen advertising posters in Pattaya that say that this is possible. I have no idea how true it is though.

I dont suppose that many farangs buy here unless they have the cash available to do so.

[ukchatterbox]

UOB through Singapore

[KamnanT]

Yes, it is possible - I financed my condo through UOB in Bangkok. The hurdle for most people is the requirement that foreigners without Permanent Residence must show that all of the funds for their condominium purchase were remitted from outside Thailand. A local bank lending you Thai baht does not satisfy this requirement unless the money were to be transferred out of Thailand and then back in again - something the bank is clearly never going to let you do (what happens if you and the money just disappear?). I have PR so this wasn't an issue.

Some of the local banks offer loans from their overseas affiliates (usually Singapore) and thus satisfy the overseas remittance rule. However, these loans are usually in SGD or USD, so you would have a currency exposure. As a result, maximum loan-to-valuation ratios are lower for these types of loans (50% to 70%) than they would be for a local loan (up to 90% in some cases).

[RBOP]

A friend of mine got 120% financing from a Thai bank to purchase 2 condos and fill them with furniture back in 1996. After the Asian crisis banks are a little a more cautious. Five years ago a tried to borrow money to purchase a 2nd condo and even offered my 1st condo and 2 cars as collateral. SCB Bank denied my application saying they don't loan to foreigners (by law).

[KhnomKhnom]

Yes, it is possible - I financed my condo through UOB in Bangkok. The hurdle for most people is the requirement that foreigners without Permanent Residence must show that all of the funds for their condominium purchase were remitted from outside Thailand. A local bank lending you Thai baht does not satisfy this requirement unless the money were to be transferred out of Thailand and then back in again - something the bank is clearly never going to let you do (what happens if you and the money just disappear?). I have PR so this wasn't an issue.

Some of the local banks offer loans from their overseas affiliates (usually Singapore) and thus satisfy the overseas remittance rule. However, these loans are usually in SGD or USD, so you would have a currency exposure. As a result, maximum loan-to-valuation ratios are lower for these types of loans (50% to 70%) than they would be for a local loan (up to 90% in some cases).

I get RPO at all the ABBVs used on this TV. MBH is TMTB where ROF pontificate.

[AlexDorneles]

Hello,

very interesting question. What are the lending rates? Do they ask for proof of income like income tax fillings?

Edited January 2, 2015 by AlexDorneles

[KamnanT]

Yes, it is possible - I financed my condo through UOB in Bangkok. The hurdle for most people is the requirement that foreigners without Permanent Residence must show that all of the funds for their condominium purchase were remitted from outside Thailand. A local bank lending you Thai baht does not satisfy this requirement unless the money were to be transferred out of Thailand and then back in again - something the bank is clearly never going to let you do (what happens if you and the money just disappear?). I have PR so this wasn't an issue.

Some of the local banks offer loans from their overseas affiliates (usually Singapore) and thus satisfy the overseas remittance rule. However, these loans are usually in SGD or USD, so you would have a currency exposure. As a result, maximum loan-to-valuation ratios are lower for these types of loans (50% to 70%) than they would be for a local loan (up to 90% in some cases).

I get RPO at all the ABBVs used on this TV. MBH is TMTB where ROF pontificate.

My apologies. If you be so kind to indicate which of the four abbreviations used in my post you did not understand (UOB, PR, SGD, USD), I would be more than happy to explain them to you. And I will speak very slowly.

[AlexDorneles]

what is PR?

[KamalaRider]

what is PR?

Permanent residency.

[bkkjohnny69]

UOB Thailand via Singapore, I recently completed on a mortgage for a Condo in BKK.

Rates as follows.

Interest Rate (Floating rate and subject to change upon bank’s discretion)

Loan in USD : 1st Year: US$ Prime + 2.75% = 6.00%

2ndYear: US$ Prime + 3.25% = 6.50%

Thereafter: US$ Prime + 3.75% = 7.00%

US$ Prime is currently at 3.25%

Loan in SGD : 1st Year: 3M SIBOR + 5.35% = 5.75%

2nd Year: 3M SIBOR + 5.85% = 6.25%

3rd Year : 3M SIBOR + 6.35% = 6.75%

Thereafter 3M SIBOR + 6.35% = 6.75%

3M SIBOR = 0.40% as at 30 Oct 2013

Extensive documentation is required including tax returns from home country and anywhere else you may be working. No different to the banks at home.

I was told upon completion that the next purchase will be much easier given that I am now a customer.

[Thairod]

Yes I financed my condo with SCB they would only lend 50% of the purchase price and mortgage insurance was very expensive. Go straight to head office in Bangkok as we just got the run around here in Udon.

[stoli]

Yes, it is possible - I financed my condo through UOB in Bangkok. The hurdle for most people is the requirement that foreigners without Permanent Residence must show that all of the funds for their condominium purchase were remitted from outside Thailand. A local bank lending you Thai baht does not satisfy this requirement unless the money were to be transferred out of Thailand and then back in again - something the bank is clearly never going to let you do (what happens if you and the money just disappear?). I have PR so this wasn't an issue.

Some of the local banks offer loans from their overseas affiliates (usually Singapore) and thus satisfy the overseas remittance rule. However, these loans are usually in SGD or USD, so you would have a currency exposure. As a result, maximum loan-to-valuation ratios are lower for these types of loans (50% to 70%) than they would be for a local loan (up to 90% in some cases).

I get RPO at all the ABBVs used on this TV. MBH is TMTB where ROF pontificate.

My apologies. If you be so kind to indicate which of the four abbreviations used in my post you did not understand (UOB, PR, SGD, USD), I would be more than happy to explain them to you. And I will speak very slowly.

I would speak at any speed that you feel desirable. But first, you must learn to speak with words. Do you speak this way with your friends? Do you know understand why they just nod their heads and look elsewhere?

[Tomtomtom69]

This topic has cropped up before. When I used to work in real estate I became acquainted with MBK Finance, who will be able to help you finance a condo when other banks inside Thailand won't. Give them a call and I'm sure they can help you. MBK Finance are the foreigner mortgage finance specialists in Thailand. I can't say with certainty about the ability of any other bank or finance company that can do foreigner mortgage financing in Thailand so give MBK a call or email.

[KamnanT]

Yes, it is possible - I financed my condo through UOB in Bangkok. The hurdle for most people is the requirement that foreigners without Permanent Residence must show that all of the funds for their condominium purchase were remitted from outside Thailand. A local bank lending you Thai baht does not satisfy this requirement unless the money were to be transferred out of Thailand and then back in again - something the bank is clearly never going to let you do (what happens if you and the money just disappear?). I have PR so this wasn't an issue.

Some of the local banks offer loans from their overseas affiliates (usually Singapore) and thus satisfy the overseas remittance rule. However, these loans are usually in SGD or USD, so you would have a currency exposure. As a result, maximum loan-to-valuation ratios are lower for these types of loans (50% to 70%) than they would be for a local loan (up to 90% in some cases).

I get RPO at all the ABBVs used on this TV. MBH is TMTB where ROF pontificate.

My apologies. If you be so kind to indicate which of the four abbreviations used in my post you did not understand (UOB, PR, SGD, USD), I would be more than happy to explain them to you. And I will speak very slowly.

I would speak at any speed that you feel desirable. But first, you must learn to speak with words. Do you speak this way with your friends? Do you know understand why they just nod their heads and look elsewhere?

No, they don't have to. They can figure out that when "Permanent Residency" is mentioned at the beginning of a paragraph, "PR" at the end of the same paragraph just might mean "Permanent Residency". Not challenging for most.

[Nemesis7]

If the OP is successful hope he will enlighten us with the details on a future post.

[MikeN]

I've seen advertising posters in Pattaya that say that this is possible. I have no idea how true it is though.

I dont suppose that many farangs buy here unless they have the cash available to do so.

At Siam Paragon last month I was given a leaflet for a new condo, with a monthly payment plan. It was all in English, so I guess it was aimed at farangs. Are property developers allowed to offer finance directly ? Or do they have an arrangement with a bank ?

[ScotBkk]

Yes, it is possible - I financed my condo through UOB in Bangkok. The hurdle for most people is the requirement that foreigners without Permanent Residence must show that all of the funds for their condominium purchase were remitted from outside Thailand. A local bank lending you Thai baht does not satisfy this requirement unless the money were to be transferred out of Thailand and then back in again - something the bank is clearly never going to let you do (what happens if you and the money just disappear?). I have PR so this wasn't an issue.

Some of the local banks offer loans from their overseas affiliates (usually Singapore) and thus satisfy the overseas remittance rule. However, these loans are usually in SGD or USD, so you would have a currency exposure. As a result, maximum loan-to-valuation ratios are lower for these types of loans (50% to 70%) than they would be for a local loan (up to 90% in some cases).

I get RPO at all the ABBVs used on this TV. MBH is TMTB where ROF pontificate.

My apologies. If you be so kind to indicate which of the four abbreviations used in my post you did not understand (UOB, PR, SGD, USD), I would be more than happy to explain them to you. And I will speak very slowly.

SmartArse.

Why so unhelpful does it really bug you that much ????

Edited January 2, 2015 by ScotBkk

[robblok]

Yes, it is possible - I financed my condo through UOB in Bangkok. The hurdle for most people is the requirement that foreigners without Permanent Residence must show that all of the funds for their condominium purchase were remitted from outside Thailand. A local bank lending you Thai baht does not satisfy this requirement unless the money were to be transferred out of Thailand and then back in again - something the bank is clearly never going to let you do (what happens if you and the money just disappear?). I have PR so this wasn't an issue.

Some of the local banks offer loans from their overseas affiliates (usually Singapore) and thus satisfy the overseas remittance rule. However, these loans are usually in SGD or USD, so you would have a currency exposure. As a result, maximum loan-to-valuation ratios are lower for these types of loans (50% to 70%) than they would be for a local loan (up to 90% in some cases).

I get RPO at all the ABBVs used on this TV. MBH is TMTB where ROF pontificate.

My apologies. If you be so kind to indicate which of the four abbreviations used in my post you did not understand (UOB, PR, SGD, USD), I would be more than happy to explain them to you. And I will speak very slowly.

SmartArse.

Why so unhelpful does it really bug you that much ????

Seriously.. the UOB, PR , SGD and USD are not hard to understand.

PR might be a problem but otherwise nothing hard there

[ScotBkk]

SmartArse.

Why so unhelpful does it really bug you that much ????

Seriously.. the UOB, PR , SGD and USD are not hard to understand.

PR might be a problem but otherwise nothing hard there

I wholeheartedly agree. However, its not fair to address this with sarcasm if someone drifts or errs on the uptake. Especially, during this HARD & DIFFICULT drinking season for Scottish tv members like myself, who tend to not give flying F%$k for such miniscule detail and tend to make mistakes as a pastime. LOL!!!

Happy New Year my friend ... take it easy ...

[timewilltell]

UOB Thailand via Singapore, I recently completed on a mortgage for a Condo in BKK.

Rates as follows.

Interest Rate (Floating rate and subject to change upon bank’s discretion)

Loan in USD : 1st Year: US$ Prime + 2.75% = 6.00%

2ndYear: US$ Prime + 3.25% = 6.50%

Thereafter: US$ Prime + 3.75% = 7.00%

US$ Prime is currently at 3.25%

Loan in SGD : 1st Year: 3M SIBOR + 5.35% = 5.75%

2nd Year: 3M SIBOR + 5.85% = 6.25%

3rd Year : 3M SIBOR + 6.35% = 6.75%

Thereafter 3M SIBOR + 6.35% = 6.75%

3M SIBOR = 0.40% as at 30 Oct 2013

Extensive documentation is required including tax returns from home country and anywhere else you may be working. No different to the banks at home.

I was told upon completion that the next purchase will be much easier given that I am now a customer.

Oh dear - you have about a year and then the rates are going to skyrocket - I hope you are prepared.

[RAZZELL]

UOB Thailand via Singapore, I recently completed on a mortgage for a Condo in BKK.

Rates as follows.

Interest Rate (Floating rate and subject to change upon bank’s discretion)

Loan in USD : 1st Year: US$ Prime + 2.75% = 6.00%

2ndYear: US$ Prime + 3.25% = 6.50%

Thereafter: US$ Prime + 3.75% = 7.00%

US$ Prime is currently at 3.25%

Loan in SGD : 1st Year: 3M SIBOR + 5.35% = 5.75%

2nd Year: 3M SIBOR + 5.85% = 6.25%

3rd Year : 3M SIBOR + 6.35% = 6.75%

Thereafter 3M SIBOR + 6.35% = 6.75%

3M SIBOR = 0.40% as at 30 Oct 2013

Extensive documentation is required including tax returns from home country and anywhere else you may be working. No different to the banks at home.

I was told upon completion that the next purchase will be much easier given that I am now a customer.

What about "non Thailand" based?

RAZZ

[bkkjohnny69]

UOB Thailand via Singapore, I recently completed on a mortgage for a Condo in BKK.

Rates as follows.

Interest Rate (Floating rate and subject to change upon bank’s discretion)

Loan in USD : 1st Year: US$ Prime + 2.75% = 6.00%

2ndYear: US$ Prime + 3.25% = 6.50%

Thereafter: US$ Prime + 3.75% = 7.00%

US$ Prime is currently at 3.25%

Loan in SGD : 1st Year: 3M SIBOR + 5.35% = 5.75%

2nd Year: 3M SIBOR + 5.85% = 6.25%

3rd Year : 3M SIBOR + 6.35% = 6.75%

Thereafter 3M SIBOR + 6.35% = 6.75%

3M SIBOR = 0.40% as at 30 Oct 2013

Extensive documentation is required including tax returns from home country and anywhere else you may be working. No different to the banks at home.

I was told upon completion that the next purchase will be much easier given that I am now a customer.

What about "non Thailand" based?

RAZZ

No problem, all my income is mostly from the UK and the mortgage can be used for either yourself or for investment purposes (i.e. Rental).

In other words, you don't need to be Thailand based.

[bkkjohnny69]

UOB Thailand via Singapore, I recently completed on a mortgage for a Condo in BKK.

Rates as follows.

Interest Rate (Floating rate and subject to change upon bank’s discretion)

Loan in USD : 1st Year: US$ Prime + 2.75% = 6.00%

2ndYear: US$ Prime + 3.25% = 6.50%

Thereafter: US$ Prime + 3.75% = 7.00%

US$ Prime is currently at 3.25%

Loan in SGD : 1st Year: 3M SIBOR + 5.35% = 5.75%

2nd Year: 3M SIBOR + 5.85% = 6.25%

3rd Year : 3M SIBOR + 6.35% = 6.75%

Thereafter 3M SIBOR + 6.35% = 6.75%

3M SIBOR = 0.40% as at 30 Oct 2013

Extensive documentation is required including tax returns from home country and anywhere else you may be working. No different to the banks at home.

I was told upon completion that the next purchase will be much easier given that I am now a customer.

Oh dear - you have about a year and then the rates are going to skyrocket - I hope you are prepared.

Depends how you view the world, I would much rather pay for an investment that is mine rather than funding someone else's investment by renting.

There is very little difference with the mortgage repayment and the market rates for rental.

[German Viking]

UOB Thailand via Singapore, I recently completed on a mortgage for a Condo in BKK.

Rates as follows.

Interest Rate (Floating rate and subject to change upon bank’s discretion)

Loan in USD : 1st Year: US$ Prime + 2.75% = 6.00%

2ndYear: US$ Prime + 3.25% = 6.50%

Thereafter: US$ Prime + 3.75% = 7.00%

US$ Prime is currently at 3.25%

Loan in SGD : 1st Year: 3M SIBOR + 5.35% = 5.75%

2nd Year: 3M SIBOR + 5.85% = 6.25%

3rd Year : 3M SIBOR + 6.35% = 6.75%

Thereafter 3M SIBOR + 6.35% = 6.75%

3M SIBOR = 0.40% as at 30 Oct 2013

Extensive documentation is required including tax returns from home country and anywhere else you may be working. No different to the banks at home.

I was told upon completion that the next purchase will be much easier given that I am now a customer.

What about "non Thailand" based?

RAZZ

No problem, all my income is mostly from the UK and the mortgage can be used for either yourself or for investment purposes (i.e. Rental).

In other words, you don't need to be Thailand based.

Means this I can use for example a german bank to finance a condo in Thailand as long they agree with any Thai bank involved!!???

I germany I can getting actually for sure for properties in germany.

5 years fixed interest max. 3%

25 years fixed interest for around 4% based on Euros.

[donx]

UOB Thailand via Singapore, I recently completed on a mortgage for a Condo in BKK.

Rates as follows.

Interest Rate (Floating rate and subject to change upon bank’s discretion)

Loan in USD : 1st Year: US$ Prime + 2.75% = 6.00%

2ndYear: US$ Prime + 3.25% = 6.50%

Thereafter: US$ Prime + 3.75% = 7.00%

US$ Prime is currently at 3.25%

Loan in SGD : 1st Year: 3M SIBOR + 5.35% = 5.75%

2nd Year: 3M SIBOR + 5.85% = 6.25%

3rd Year : 3M SIBOR + 6.35% = 6.75%

Thereafter 3M SIBOR + 6.35% = 6.75%

3M SIBOR = 0.40% as at 30 Oct 2013

Extensive documentation is required including tax returns from home country and anywhere else you may be working. No different to the banks at home.

I was told upon completion that the next purchase will be much easier given that I am now a customer.

Thanks for the information. Can you answer a few questions if you don't mind? I read in one of your other posts that your income is from the UK. So which currency did you choose? And what percentage of the condo costs were you able to get financed?

[dotpoom]

Some people selling will offer "terms" themselves...like paying over an agreed period of time

[kbelyeu]

MBK finance does 50% loans to foreigners.

Kurt