When we buy a property back home, one of the first things we would think of is financing. Even for those who have sufficient funding and liquidity for an acquisition, financing is often seen as a means of leveraging our investments. For buyers with less access to funding, financing is an indispensable vehicle they use to own that dream home.
In this instance, Thailand is the same as any other country. Most of the financial institutions in Thailand provide loans for real estate purchases to local Thais and Thai companies based on similar criteria we are used to in our home country.
However, the similarities do end there for most foreigners buying property in Thailand. Foreigners generally cannot mortgage properties in Thailand. In fact, mortgage lending by local banks to foreigners is virtually unheard of in Thailand as freehold on land is NOT available to foreigners, only leasehold on the land. Nonetheless, in recent years there has been a slight shift in policies to allow foreigners limited access to financing. This was instigated, in part, by the Thai government’s eagerness to promote tourism and to encourage economic growth in Thailand.
Whilst every effort, has been taken, to guide and advise you correctly on all matters above. We must advise that the Laws in Thailand regarding property finance change from time to time and by Lender. As such we recommend the use of a respected bank or lawyer when considering these options. We also state/advise that the above information is not legally binding in these matters.