So, you’ve found your dream home in Thailand. The next step is figuring out how to finance it. As a foreigner, however, getting a loan for real estate in Thailand can be challenging.

Most local banks are happy to provide mortgages to Thai citizens, but loans to foreigners are rare. While a few banks do lend to non-Thai citizens, the requirements are strict and make access to financing limited.

Another key restriction is that the property must be in the foreigner’s own name. Since foreigners can only own condominiums freehold under the Condominium Act, bank loans are limited to condo purchases. Buying land or a house with a mortgage is not possible.

Although policies have slowly improved in recent years, obtaining financing is still far from straightforward. If you don’t plan to purchase with cash, we recommend contacting banks early in your property search to fully understand your options.

1. Financing Options for Foreigners in Thailand

There are two options available to foreigners:

1. Loans from local banks or financial institutions
2. International home loan schemes for Thailand

2. Finance from Local Financial Institutions (Banks)

Not all banks in Thailand offer loans to foreigners, but a couple that do are HSBC, Siam Commercial Bank, and Thai Military Bank. Each individual institution has its own policies on lending to foreigners, but there are certain criteria that are pretty much universal.

Proof of a stable and secure job

1. A work permit of no less than 1 year or a Thai resident permit
2. Proof of employment in Thailand, such as a letter from your employer that clearly states your length of service and annual income
3. As further proof of income, you will need to attach payslips to the above
4. Banks are also entitled to request company documents from your employer to ascertain the sustainability of your employment

Sustainability of payments

1. Credit checks will be conducted on the applicant
2. The repayment period and the applicant’s current age cannot be more than 60 years when added together
3. The fixed income must be at least three times the agreed monthly repayment
4. The total amortization period of the loan must exceed 7 years (the period varies depending on the bank)

Do I need to submit any other documents?

You must also be prepared to be able to present the following documents as part of your application:

1. Copies of your passport, including of visa page, identity card, or government official identity card
2. Marriage certificate (if applicable)
3. Copies of bank statements
4. Copies of land or unit title deeds and sale and purchase contracts

What interest rate can I expect?

This is dependent on specific bank offers at the time and is typically offered on fixed-rate terms. If you want to be sure of the best rate, then you will need to complete a comparison of individual bank rates. They are competitive, so it’s worth doing. You might be wondering, "What other factors are involved in granting a loan amount for the property?". In our experience, banks generally have their own valuation process from which they ascertain a fair market value for the property.

3. International Home Loan Schemes

This scheme allows foreigners to buy property in Thailand even if they don’t live there. Initially introduced in 2005 by the Singapore branch of Bangkok Bank, they offer up to 70% finance to foreigners wishing to purchase property in Thailand. With more and more foreigners looking to have a dream holiday or eventual retirement home in Thailand, the demand for this is rising and therefore the Singapore branch continues to offer this service.

Question: What currencies can the loan be paid in?

Answer: They can offer loans in numerous currencies

Question: Is there a charge for this service?

Answer: There is an administration fee for this service.

Question: How do I apply?

Answer: Here’s the catch: as they insist on meeting applicants in person, you will have to travel to Singapore for a face-to-face meeting only to apply.

Question: Are there any alternatives to Bangkok Bank?

Answer: No doubt, having realized the demand, the United Overseas Bank (UOB) now also offers a similar service. They don’t have as much experience under their belt as Bangkok Bank, but it does give foreigners a choice. More than just choice, business competition means competitive deals for customers.

Question: What is the difference?

Answer: This is exactly where competitive deals can sway you as the customer, depending on your needs. Presently, the terms of the two banks are similar in their interest rate, so not much sway there. UOB also has an administration fee, but it is a little more than Bangkok Bank. However, UOB does allow the customer to apply for the loan in Thailand, and therefore, there is no need to visit Singapore.

4. Criteria for Mortgages

A final note on mortgage criteria and protection under Thai law.

What legislation covers this?

The Thai Civil and Commercial Code – Section 702.

What rules do I have to adhere to in order to qualify for protection under Thai Law?

1. The right of ownership of the property must lie with the mortgager.
2. The mortgage contract needs to be in writing and registered.
3. Individuals must register the mortgage for land with a title deed at the Land Department, Bangkok Metropolis Land Office (Branch), Provincial Land Office, or Provincial Land Office (Branch) where the land being mortgaged is situated.
4. Individuals must register the mortgage for land with no title deed (e.g., a Nor Sor 3) at the District Office where the land being mortgaged is situated.

For further reading, we recommend our popular Can Foreigners Buy Property in Thailand article and our piece on Reasons to Buy a Condo in Phuket.

Whether you're an investor, a future resident, or simply exploring your options, now is the time to think long-term. Browse our curated collection of properties in Phuket—or reach out for a personal consultation. Better yet, schedule a one-on-one video call with Alex Seago, Managing Director of Pulse Real Estate. The team will help you find a home that makes sense for today—and for tomorrow.