Obtaining a Loan or Property Mortgage with a Thai Bank
It’s not that easy for foreign buyers to borrow money from a Thai bank to buy property in Thailand. Being approved for a loan via a Thai bank is not common for foreign property buyers, however it may be possible. Due to the fact the funds have to come from an overseas source and currency to buy property in Thailand the local bank will direct you to an overseas branch of their bank at the stage of application. In most cases the prospective borrower to be asked to present a one year work permit, proof of income such as bank statements and pay slips, pass credit checks and prove that income is a minimum of three times the amount of the loan if you are able to apply at all. It is also worth noting that the branches of Thai Banks will ask for you to visit them in person in another country they do business to process the application, other banks may allow applications in Thailand but charge higher fees. Also most of these banks do not lend to borrowers over the ages of 55-60.
Private Loan or Seller Financing
If you want to finance a portion of your property purchase and are not eligible for a mortgage for whatever reason, you may wish to apply for private financing or a non-conventional loan. MBK private loans are unique in Thailand and provide a solution for buyers of property in Thailand that lack the funds to purchase the property outright, please review the options they have and always ensure an attorney reviews all the loan or mortgage documents before you agree to close the deal.
If you are an investor: having the cash to invest is a powerful bargaining tool in Thailand. Good above average returns can be made, especially when purchasing existing ready to move in and take title property and for those willing to make calculated low risk investments. Having the cash ready and waiting means when an opportunity is present, it can be exploited. It also means no rental returns are lost due to interest loan repayments.
Primary Residence Loans: are more than likely for long stay residents, and it saves you all the lost rent you would have paid over a period of time, and an becomes an asset rather than lost money. Primary residence Financing is a solution for residents looking to live in the property for part of the year or full-time.
In recent years many owners of properties have been offering private or (seller financing) to potential buyers. Normally such deals require a 30-50% down payment of the total cost of the property, and then you pay off the mortgage in installments over a 10 to 15 year period. The interest rate charged varies and it is advisable to shop around if you are considering seeking private financing for a property. We have many listings that offer seller or non-conventional long term financing just contact our office or look on our website www.jomtien-realty.com
We can provide experience and knowledge on both the financial and the legal aspects of obtaining the financing and what documents you will need and how to secure the mortgage on your property, however we always recommend you have a certified Thai Lawyer review all documents related to a purchase of a loan of any kind. Contact us [email protected] or +66-859105124 for realistic common-sense real estate advice
