Can a Foreigner Get a Bank Loan and Mortgage in Thailand?

In recent years, there has been a growing trend of foreigners purchasing houses in Thailand for investment purposes due to the amendment of land ownership for foreigners in Thailand.

To promote tourism and economic growth, financial benefits are now being offered not only to locals, but also to foreigners.

This expansion of access has made Thailand an attractive destination for property investment among people from various countries.

For example, foreigners are now eligible to apply for bank loans in Thailand, subject to specific terms and conditions.

Bank Loans in Thailand 

Who is eligible?

Banks have specific policies regarding lending to foreigners due to several reasons. To qualify for a bank loan, foreigners must fulfill requirements as below: 

• A work permit valid for at least one year or a Thai residency permit 

• Verification of employment in Thailand and proof of annual salary, including payslips 

• Employer's company documents may be required by the bank in certain cases 

• Successful completion of a bank-conducted credit check 

• The combined age of the applicant and the loan term must not surpass 60 years 

• Employment must be stable and secure 

• Total income must be at least three times the monthly installment amount 

• For some banks, the total loan amortization must exceed seven years 

What documents are required?

To apply for a loan, the bank requires the following documents from the applicant: 

• Copies of the passport, including the visa page, identification card or a government office ID card 

• Marriage certificate for the applicant and spouse, if applicable 

• Income or salary verification, along with copies of bank statements 

• Copies of land or unit title deeds, sale and purchase contracts 

Mortgage in Thailand 

A mortgage is a legal agreement between a borrower and a lender, typically a bank, where the borrower obtains financing to purchase a property.  

Once fully repaid, the borrower gains full ownership of the property.  

Thai mortgage laws are regulated under the Thai Civil and Commercial Code. 

What are the immovables that can be mortgaged?

The following immovables can be mortgaged if they are registered according to the law: 

• Ships of five tons or over 

• Floating houses 

• Beast of burdens, such as an elephant, donkey or horse 

• Any other movables with regard to which the law may provide registration for that purpose 

What are the criteria?

Foreigners are eligible to secure mortgages governed by the Thai Civil and Commercial Code.

To qualify for legal protection under Thai law, the following conditions must be met:

• The mortgagor must hold the right of ownership of the property.
• The mortgage contract must be in writing and duly registered.
• The parties involved must register the mortgage with the authorized officer as follows:

  • Land with a title deed must be registered at the Department of Lands, Bangkok Metropolis Land Office (Branch), Provincial Land Office, or relevant Provincial Land Office (Branch) where the mortgaged land is located.
  • Land without a title deed must be registered at the District Office where the mortgaged land is located.

When considering applying for a loan, it is important to understand that taking on debt will increase your financial responsibilities and limit your flexibility.

Additionally, loans and mortgages involve interest payments, which can result in paying back even more in the long run.

Hence, as a foreigner who may not be familiar with the local market, it is advisable to seek guidance from a trusted real estate consultant before officially applying for a bank loan or mortgage in a foreign country. Enquire with our professional team today to get a deep insight!

It is always advisable to seek guidance from a trusted real estate professional before doing property investment in a foreign country. Enquire with our professional team today to get a deep insight!