Can a foreigner get a mortgage in Thailand?

[DoDoey]

I know this question has been asked over the years, but I can't find a recent thread. The latest I could find was 2010.

I'm a foreigner working legitimately in Thailand; work permit, Visa, paying taxes, etc. Married to Thai national with no income. Are there any banks offering mortgages to individuals under these circumstances? We're looking for a condo in BKK.

Thank you.

[Don Mega]

Yes.

[DoDoey]

Yes.

Thanks Don, can you offer any details? Which banks, typical terms, qualifying? Thanks again for your reply.

[Soutpeel]

On a landed property no chance via a Thai bank in your own name

On a condo possibly

Edited February 1, 2015 by Soutpeel

[happynthailand]

try SCB,they like expats

loan wife works 80% loan,you pay monthly

loan wife not working 50% loan,you pay monthly

been useing them for years

[vaultdweller0013]

Based on my understanding:

1. A foreigner cannot be the primary borrower on a mortgage in Thailand. However, they can be a secondary borrower to their (legally registered) spouse or immediate relative. Individual banks will have additional polices and restrictions on top of this, so only way to know is to check around.
2. It is possible for a foreigner to be the primary borrower on a mortgage for a condo through a foreign (e.g. Singapore) division of some banks (I think UOB, Bangkok Bank, and maybe Citibank do this). However, the terms for these loans are typically very poor compared to a normal mortgage and would generally not make financial sense to do.

[stat088]

I managed to get a mortgage for house and land in my name and my wifes name. My wife was not working and i was working in a neighboring Country. I was entering Thailand on a Tourist Visa. My salary was being paid into a Thai bank account.

[teatree]

I know of a foreigner working on Thailand who got a mortgage for a house. His wife doesn't work.

I think he had to put down a good chunk of money as a down payment and it took a lot of negotiation with the bank but he got it.

Edited February 2, 2015 by teatree

[recycler]

We have a mortgage on a house here with SCB. We are legally married, at the time my wife had a low income, basically via me doing some work in Thailand for a European company and she was the MD of the company that executed that job and hired the staff.

It is however expensive, we pay 7% interest. If you have property elsewhere you may be cheaper off increasing your mortgage there or even borrowing in Europe if you have the option. I haven't so we are paying a high mortgage.

3 months ago we were offered a loan by Tanachart because of our good payment history, I paid my car off and my wife's car is over half paid off. When they saw that the income was farang only they refused.

I would expect that it's getting more difficult as we have hordes of Russians defecting on loans now and Europeans are the next in line after the Euro plummeted. These banks do follow the global situation.

[Lobber]

No chance of a farang getting a mortgage in his / her name only.

if someone can give REAL facts rather than internet guessing let me know.- not this BS -- "try XXX bank , I know a guy who >>>> all barstool BS .

NO facts

[davemos]

yes try Thanachart bank they have a list of condos which they will finance .High interest 7%.Land or house can only be owned by Thai person.The office is in MBK .

[smotherb]

On a landed property no chance via a Thai bank in your own name

On a condo possibly

I know two farangs in Songkhla, both married to Thais and both have kids with their Thai wives. Both are offshore workers who stay here with visa-exempt entries of 30 days. Both have lived in Thailand for 20 plus years, both have secured loans to purchase homes, buy cars, and finance businesses through banks in Thailand--both farangs' names are on the loans as guarantors, the property financed is collateral. One says the names on the deed are their kids, the other says it is his wife's name. Both farangs have dealt with the banks--SCB and TMB--for several years, and both are known to the management of the banks. One bought a second home just last year, the other bought a piece of property adjoining his house just last month, so both loans are current info; although, they may be approved based on past loan experience. TIT, knowing those in decision-making positions goes a long way. Of course, this is all hearsay, I have no first-hand knowledge, but I have known both of these men for more than seven years, have seen their homes, cars, and businesses and trust their word.

[Guest]

A Foreigner can get a loan in Thailand without all the paperwork most think they need and it is perfectly legal and endorsed by the government.

The loan can be in the name of a foreigner.

The interest is higher than for a Thai, but it can be done, and is done on a regular bases.

However, the property must be in a desirable location where growth of value is a good bet.

These loans are facilitated by one of the largest and most respected companies in Thailand, and some of the loan officers are even native English speakers. Quite easy really, for the right property.

Edited February 3, 2015 by Guest

[globalance]

My wife got a 600K loan even though she wasn't working, to finish financing a 1.7MTH house we bought, from the Government Housing Bank. We had been to many banks with no luck. It started out at 3.5% but wasn't "fixed" and went up to 6% which the bank told me was standard now even though 3.85% on a 30 year fixed loan is not the norm internationally.

I'm not included on the loan documents, although it was entirely based on my income.

ps: since the house purchase 10 years ago, my wife has passed away. I got a ruling from a Thai Judge that I am the "executor of the estate" and in full legal control of the house and property. The bank told me I can legally be the house owner because of some Thai Legal Clause stating that if a Thai wife dies, her legal husband can legally own one house and up to one rai of land. But the same bank refuses to put the house into my name or let me take out an additional mortgage. They just want me to pay off the loan! They have a "policy" of not dealing with falongs! There you go! Rollee

[jimky]

Foreigner with only foreign income with Thai wife who has no income. For loan in both of our names together. When I applied with K Bank I showed them my Thai bank statements. Showing my monthly transfers from a US bank. About a week into process they requested certified IRS tax transcripts with an affidavit notarized at US embassy stating I paid tax on all my income. This delayed me several weeks. I finally made it through a long process and I am near certain was a done deal but withdrew at the end of it. Originally we were told there were 3 years of promotional rates which came to about 4.5 apr if I paid in full after 36 months. That was my plan and why I did this. But then when approved it was 8.25% with no promo rate plus about 120k baht between fees and required life insurance which were not previously mentioned. The amount allowed came in just under 70%. That part no big deal the fees and interest were an lol no for me though.

[Nemesis7]

Honestly speaking it mainly depends on the individual bank manager's discretion but if the property has good value and in a good area where the financial institution feels can recover more money than what the invested, it a green light and there are many builders or developers have good connections with the banks and they can surely assist you.

[TallGuyJohninBKK]

There's a lot of pretty vague posts and info being thrown out above...

I'm not an expert in this, but I think I understand a few things:

1. The Thai banks' rules and policies today are not necessarily those of 5 or 10 years ago.

2. A farang getting a loan in his/her own name just to build a house, which a farang can own, is different than getting a loan to buy land or land and an existing house, which a farang cannot own -- the land part.

3. Being a guarantor on a loan granted to someone else, such as a Thai wife, is not the same as a farang getting a loan in his/her own name -- although, being a guarantor still means you're financially responsible if the main loan recipient flakes out.

4. In the condo market specifically, the larger builders/developers often arrange their own financing deals for buyers through banks or others, and thus can somewhat set the rules (and rates and fees) to suit their own policies. That's a separate kind of financing from what Thai banks themselves will do directly for farangs.

5. Generally, in the past at least, the reports here on ThaiVisa were that work permit holders often could get loans from Thai banks in their own names to buy condos, sometimes with the banks using their own outside Thailand affiliates, such as UOB. But that the downpayment amounts and interest rates were often higher than for Thais.

Edited February 3, 2015 by TallGuyJohninBKK

[Cbr150r]

No one mentions that even if a foreigner can get a loan in their name they can't put the condo in their name as the money must be transfered in from abroad. Correct me if I'm wrong.

[TallGuyJohninBKK]

AFAIK, condos in Thailand can be bought by and held in the name of an individual foreigner owner -- provided the units are available for sale to foreigners.

It's land that cannot be, except in a few limited circumstances.

[Anthony5]

On a landed property no chance via a Thai bank in your own name

On a condo possibly

I know two farangs in Songkhla, both married to Thais and both have kids with their Thai wives. Both are offshore workers who stay here with visa-exempt entries of 30 days. Both have lived in Thailand for 20 plus years, both have secured loans to purchase homes, buy cars, and finance businesses through banks in Thailand--both farangs' names are on the loans as guarantors, the property financed is collateral. One says the names on the deed are their kids, the other says it is his wife's name. Both farangs have dealt with the banks--SCB and TMB--for several years, and both are known to the management of the banks. One bought a second home just last year, the other bought a piece of property adjoining his house just last month, so both loans are current info; although, they may be approved based on past loan experience. TIT, knowing those in decision-making positions goes a long way. Of course, this is all hearsay, I have no first-hand knowledge, but I have known both of these men for more than seven years, have seen their homes, cars, and businesses and trust their word.

-both farangs' names are on the loans as guarantors

Which means that the loans are not in their names, but they are guarantors to a loan in someone else name.

[Don Mega]

My wife got a 600K loan even though she wasn't working, to finish financing a 1.7MTH house we bought, from the Government Housing Bank. We had been to many banks with no luck. It started out at 3.5% but wasn't "fixed" and went up to 6% which the bank told me was standard now even though 3.85% on a 30 year fixed loan is not the norm internationally.

I'm not included on the loan documents, although it was entirely based on my income.

ps: since the house purchase 10 years ago, my wife has passed away. I got a ruling from a Thai Judge that I am the "executor of the estate" and in full legal control of the house and property. The bank told me I can legally be the house owner because of some Thai Legal Clause stating that if a Thai wife dies, her legal husband can legally own one house and up to one rai of land. But the same bank refuses to put the house into my name or let me take out an additional mortgage. They just want me to pay off the loan! They have a "policy" of not dealing with falongs! There you go! Rollee

Yeah but doesn't the Farang have to get it out of his name withing a 12 month period after wife passes away ?

[bkk_mike]

As the OP is married to a Thai national, he has the same option I used.

My non-working wife took out a mortgage, for which I was a guarantor.

This was with UOB, and as I was working in Hong Kong at the time, I had to get a statement from my employer (US multi-national - it helped that it was a company that people had heard of), proof of life insurance (which I already had), and the fact it was foreign income reduced the multiple of salary I would have been able to borrow by around 15% to offset the currency risk, but the loan got approved. - But we were borrowing something like 75%, and only something like a multiple of 1x salary, so not exactly a high risk loan, and my wife had a good credit rating from previous car loans.

If you have a Thai work permit, I'm not sure whether you can get a mortgage in your own name for a flat, but you can definitely get one in your wife's name (unless she has a terrible credit rating...)

[smotherb]

On a landed property no chance via a Thai bank in your own name

On a condo possibly

I know two farangs in Songkhla, both married to Thais and both have kids with their Thai wives. Both are offshore workers who stay here with visa-exempt entries of 30 days. Both have lived in Thailand for 20 plus years, both have secured loans to purchase homes, buy cars, and finance businesses through banks in Thailand--both farangs' names are on the loans as guarantors, the property financed is collateral. One says the names on the deed are their kids, the other says it is his wife's name. Both farangs have dealt with the banks--SCB and TMB--for several years, and both are known to the management of the banks. One bought a second home just last year, the other bought a piece of property adjoining his house just last month, so both loans are current info; although, they may be approved based on past loan experience. TIT, knowing those in decision-making positions goes a long way. Of course, this is all hearsay, I have no first-hand knowledge, but I have known both of these men for more than seven years, have seen their homes, cars, and businesses and trust their word.

-both farangs' names are on the loans as guarantors

Which means that the loans are not in their names, but they are guarantors to a loan in someone else name.

Yes, in one it's his kids, with the other it's his wife. However, these are on house and land, the OP is interested in a condo. The point being, you can get a loan as a farang, even if the loan and property is not in your name. Since the OP wants a loan on a condo, which can be in a farang's name, perhaps the loan too can be in the farang's name--seems senseless to have a Thai's name on a loan for which the guarantor and the property owner is a farang, but TIT.

[TallGuyJohninBKK]

Generally speaking, I don't think the Thai banks mind to have farangs as guarantors on loans where the loan and the property are held in a Thai's name.

Why should they mind? Having a guarantor just means there's an extra promise of repayment, above and beyond what the main Thai loan recipient provides.

But being a guarantor on a loan doesn't provide the guarantor, in this case a farang, any ownership rights to the asset.

What may vary from bank to bank is how willing the bank is to accept the farang guarantor's income as a SUBSTITUTE for the Thai owner's income, or whether the bank still will require the Thai owner to qualify for most or all of the loan based on their own separate income.

Meanwhile, on the question of the Thai wife passing away, a farang husband who inherits land, let's say with a house, in that manner is required under Thai law to sell the land with a reasonable period of time, which seems to get interpreted at somewhere between 6 and 12 months by various people in various places. But I've never heard anyone say any longer than one year.

[GarryP]

I was offered mortgages by UOB and Bangkok Bank of up 80% of the price of the property, when I was about to buy a town house 3 years ago. My wife did not work. My son actually would have held the mortgage and he was a student at such time with no income and I would act as guarantor. The mortgage was based on my income alone. I was ready to sign the papers, selecting to go with UOB, but in the end paid cash, which wiped out all my savings but left me debt free.

[TallGuyJohninBKK]

So, had you proceeded with UOB, the loan would have been in your Thai son's name and I assume the townhouse also, you would have been the guarantor, and UOB was willing to accept your income in lieu of your son's.

Edited February 4, 2015 by TallGuyJohninBKK

[GarryP]

So, had you proceeded with UOB, the loan would have been in your Thai son's name and I assume the townhouse also, you would have been the guarantor, and UOB was willing to accept your income in lieu of your son's.

Correct. Actually, if I recall correctly my son and I were going to be joint borrowers. In the end paid cash and the house is in my son's name. He would have inherited it anyway. Had it been in my wife's name it would have been a pain in the bum as she passed away last year. Both my wife and I agreed that it should be in our son's name from the beginning.

Edited February 4, 2015 by GarryP

[Soutpeel]

No chance of a farang getting a mortgage in his / her name only.

if someone can give REAL facts rather than internet guessing let me know.- not this BS -- "try XXX bank , I know a guy who >>>> all barstool BS .

NO facts

Right well here is real facts relating to SCB first hand, I have signed on a home loan on landed property, in the wife's name, reason I could secure the loan in my own name, because the property is" landed" and foreigners are not permitted to own land...with me so far ?

As I have co signed on a mortgage for a Thai national and the loan has always been paid on time over many years, SCB offered me a mortgage on a CONDO in my own name, as foreigners can own condos in their own name

Enough facts for you slick ?

[Soutpeel]

As the OP is married to a Thai national, he has the same option I used.

My non-working wife took out a mortgage, for which I was a guarantor.

This was with UOB, and as I was working in Hong Kong at the time, I had to get a statement from my employer (US multi-national - it helped that it was a company that people had heard of), proof of life insurance (which I already had), and the fact it was foreign income reduced the multiple of salary I would have been able to borrow by around 15% to offset the currency risk, but the loan got approved. - But we were borrowing something like 75%, and only something like a multiple of 1x salary, so not exactly a high risk loan, and my wife had a good credit rating from previous car loans.

If you have a Thai work permit, I'm not sure whether you can get a mortgage in your own name for a flat, but you can definitely get one in your wife's name (unless she has a terrible credit rating...)

You don't need to be married to a Thai national to be a guarantor on a loan or the Thai national even working certainly in the case of SCB

[Cbr150r]

AFAIK, condos in Thailand can be bought by and held in the name of an individual foreigner owner -- provided the units are available for sale to foreigners.

It's land that cannot be, except in a few limited circumstances.

Agree but add one thing about buying a condo. The foreigner must bring in the money from overseas in order to qualify. This is well documented. Way around it is if one has citizenship. Not sure if PR negates this requirement.