Current Banks Offering Home Loans to Foreigners

[saramsland]

I've decided to purchase a property in Bangkok and would rather borrow the money than drop a bundle of cash to purchase directly. I know this may not be the choice for all but it is for myself considering the current economy of the world.

Today I spoke to UOB Singapore and as I receive my income from a country that does not have a UOB Branch, they will not accept my application. Bangkok Bank however has indicated that they will accept my application & informed of the current loan tenor, interest rate as well as maximum loan amount.

I understand the places to obtain a Home Loan as a foreigner for property in Thailand is limited but I wanted to ask the wider public if there are any other Bank known to be offering such lending. Fyi.. I'm Australian, divorced in Thailand with custody of my half Thai son.. so the option of being a guarantor to a Thai is out of the question.

[fletchsmile]

If you're a high net worth individual (HNWI) try StanChart Singapore. A few years back they would arrange finance from Singapore or HongKong and in conjunction with their subsidiary in Thailand come up with an arrangement that might suit. I helped out with someone doing that.

Basically Thai banks have various restrictions, and buying a condo the money needs to come from abroad not Thailand. Foreign banks are reluctant to lend because of the difficulties they would have foreclosing as foreigners. So banks like StanChart, UOB etc worked ways to combine both elements.

Bangkok Bank Singapore used to do it a few years back, but I believe they were pressured from BOT not to do so. That didn't require HNWI status. Long shot but worth checking to see if it's changed.

For Stan Chart HNWI was basically a Private Banking client with liquid assets of USD 1mn up. It was limited to condos in key foreigner related areas like Bangkok, Phuket etc. Not landed houses and not in Nakorn Nowhere.

Another key option is as you say is a loan in Thailand to a Thai guaranteed by you. Technically that doesn't need to be a spouse, although banks definitely prefer that, and are highly likely to decline if it isn't a spouse, but it is possible. Wouldn't be allowed to a minor child though. So unless you have an adult Thai you trust and get very lucky with a bank or have a connection, as you say very likely not an option for you.

Cheers

Fletch

Edited June 29, 2016 by fletchsmile

[blackcab]

As mentioned, unless you have permanent residency the money must be transferred into Thailand as foreign currency then be exchanged here.

If you get a loan then it cannot be in Thai baht.

[TPI]

What ever you do, do not use the BAAC their interest rate is around 48%, it's easy for a Thai national to borrow from them but the interest rate is..........whew!

[scuba2day]

As mentioned, unless you have permanent residency the money must be transferred into Thailand as foreign currency then be exchanged here.

If you get a loan then it cannot be in Thai baht.

So, is there actually a requirement for the funds transferred in to be in a foreign currency?

I have a Thai Baht foreign currency account with HSBC, Hong Kong for example.

[williamgeorgeallen]

having owned multiple properties in thailand i would strongly recommend against buying here. you are limited to buying condos. i have owned houses and it is not worth the hassle or risk. i bought 2 condos off plan and waited 5 years for them to be completed. i just managed to sell on at a small lostt, which i consider a miracle in todays market. rents are low and tenants are hard to find. where are you looking to buy?

[blackcab]

As mentioned, unless you have permanent residency the money must be transferred into Thailand as foreign currency then be exchanged here.

If you get a loan then it cannot be in Thai baht.

So, is there actually a requirement for the funds transferred in to be in a foreign currency?

I have a Thai Baht foreign currency account with HSBC, Hong Kong for example.

Yes there is. You need to supply the Land Office with your Foreign Exchange Transfer form that will be provided by the bank that receives and exchanges your foreign currency.

No FET form, no deal (unless you hold permanent residency).

Speak to your bank and see if they can help you. It might be possible for them to flip your currency to satisfy the rules for a small fee. No harm in asking.

Edited June 30, 2016 by blackcab

[GAZZPA]

having owned multiple properties in thailand i would strongly recommend against buying here. you are limited to buying condos. i have owned houses and it is not worth the hassle or risk. i bought 2 condos off plan and waited 5 years for them to be completed. i just managed to sell on at a small lostt, which i consider a miracle in todays market. rents are low and tenants are hard to find. where are you looking to buy?

Sounds like you did not do your homework and buying off plan in Thailand is incredibly risky. Anyway, this tops is not about your advice on whether to buy or not to buy. i can give him my story which is far more successful then your own.

For loaning money for a condo purchase I think it is almost impossible for a foreigner, certainly without a Thai guarantor.

For poster - Best option is to spend a lot of time doing your research on what to buy and where. There are literally millions of condos that have been sitting empty since the buildings opened. I find most are small, expensive and although may have a nice lobby and some good facilities they are no good for anything but a business trip for a few days, bit like a hotel room.

I have found that finding a "good" older block that is well managed in a central location is the way to go. They are usually bigger, cheaper and as long as you do your homework on the rental yield can be very good investments.

So, answer is simple I think your stuck to paying out the full amount, my advice, do not buy off plan. Good luck.

[mrfaroukh]

As I noticed usually some builders now are ready to even 5% down payment and rest in 15 years. But it is not a very good idea. As they hike the prices so high that in the end you are actually looser. The best is to find a property with decent price and pay cash or find out if they provide loan as well.

[Dan5]

If you're a high net worth individual (HNWI) try StanChart Singapore. A few years back they would arrange finance from Singapore or HongKong and in conjunction with their subsidiary in Thailand come up with an arrangement that might suit. I helped out with someone doing that.

Basically Thai banks have various restrictions, and buying a condo the money needs to come from abroad not Thailand. Foreign banks are reluctant to lend because of the difficulties they would have foreclosing as foreigners. So banks like StanChart, UOB etc worked ways to combine both elements.

Bangkok Bank Singapore used to do it a few years back, but I believe they were pressured from BOT not to do so. That didn't require HNWI status. Long shot but worth checking to see if it's changed.

For Stan Chart HNWI was basically a Private Banking client with liquid assets of USD 1mn up. It was limited to condos in key foreigner related areas like Bangkok, Phuket etc. Not landed houses and not in Nakorn Nowhere.

Another key option is as you say is a loan in Thailand to a Thai guaranteed by you. Technically that doesn't need to be a spouse, although banks definitely prefer that, and are highly likely to decline if it isn't a spouse, but it is possible. Wouldn't be allowed to a minor child though. So unless you have an adult Thai you trust and get very lucky with a bank or have a connection, as you say very likely not an option for you.

Cheers

Fletch

Two questions. What does HNWI mean. How is it determined. And how would I go about guaranteeing a loan for a house for my Thai wife? A house, not a condo.

[Bunnychow]

having owned multiple properties in thailand i would strongly recommend against buying here. you are limited to buying condos. i have owned houses and it is not worth the hassle or risk. i bought 2 condos off plan and waited 5 years for them to be completed. i just managed to sell on at a small lostt, which i consider a miracle in todays market. rents are low and tenants are hard to find. where are you looking to buy?

Sounds like you did not do your homework and buying off plan in Thailand is incredibly risky. Anyway, this tops is not about your advice on whether to buy or not to buy. i can give him my story which is far more successful then your own.

For loaning money for a condo purchase I think it is almost impossible for a foreigner, certainly without a Thai guarantor.

For poster - Best option is to spend a lot of time doing your research on what to buy and where. There are literally millions of condos that have been sitting empty since the buildings opened. I find most are small, expensive and although may have a nice lobby and some good facilities they are no good for anything but a business trip for a few days, bit like a hotel room.

I have found that finding a "good" older block that is well managed in a central location is the way to go. They are usually bigger, cheaper and as long as you do your homework on the rental yield can be very good investments.

So, answer is simple I think your stuck to paying out the full amount, my advice, do not buy off plan. Good luck.

If you have a WP, decent salary over a good number of years and a credit history in Thailand, you can get a mortage in your own name for a condo, been offered one myself through SCB

[Bunnychow]

If you're a high net worth individual (HNWI) try StanChart Singapore. A few years back they would arrange finance from Singapore or HongKong and in conjunction with their subsidiary in Thailand come up with an arrangement that might suit. I helped out with someone doing that.

Basically Thai banks have various restrictions, and buying a condo the money needs to come from abroad not Thailand. Foreign banks are reluctant to lend because of the difficulties they would have foreclosing as foreigners. So banks like StanChart, UOB etc worked ways to combine both elements.

Bangkok Bank Singapore used to do it a few years back, but I believe they were pressured from BOT not to do so. That didn't require HNWI status. Long shot but worth checking to see if it's changed.

For Stan Chart HNWI was basically a Private Banking client with liquid assets of USD 1mn up. It was limited to condos in key foreigner related areas like Bangkok, Phuket etc. Not landed houses and not in Nakorn Nowhere.

Another key option is as you say is a loan in Thailand to a Thai guaranteed by you. Technically that doesn't need to be a spouse, although banks definitely prefer that, and are highly likely to decline if it isn't a spouse, but it is possible. Wouldn't be allowed to a minor child though. So unless you have an adult Thai you trust and get very lucky with a bank or have a connection, as you say very likely not an option for you.

Cheers

Fletch

Two questions. What does HNWI mean. How is it determined. And how would I go about guaranteeing a loan for a house for my Thai wife? A house, not a condo.

High Net Worth Individual

On the loan, having actually done this through SCB, needed my WP, 12 months pay slips and a letter from the company stating my position was not a short term contract, ie a permanent position (as much as one can be) and my passport and the loan was assessed on my salary alone, all in all took 6 weeks, i signed documents only once at my single visit to the SCB...the loan is in her name and i am on the loan as guarantor

Edited June 30, 2016 by Bunnychow