There are a few ways in which foreigners can use finance to buy property, it is not a common thing to do as interest rates are relatively high in relation to established markets. Leading may be viable to those looking to borrow a small amount in order to increase the amount of capital invested.
Option 1) Securing finance from your personal bank in your own country. Many foreign banks do offer two forms of loans to individuals to buy property overseas. The first being a personal loan, these usually are at very attractive interest rates but shorter payment terms than a traditional mortgage (3 - 10 years versus 10 - 30 years). The second form is an overseas property loan (mortgage), there will be detailed documentation summary required to your bank in order to outline the property you are planning to purchase however, each international bank is different in exactly what they request. FazWaz can assist in sourcing any documents and sales and purchase agreements that may be required.
Option 2) If you are a foreigner with an existing business in Thailand (part owner or as a shareholder can also be fine) and/or have a job where you have a substantial income made in Thailand (and proof that you pay tax here). In such cases, it is possible to borrow against your company in the form of a mortgage to purchase a property, again each bank has different requirements and restrictions so you need to check with your local bank.
Option 3) There are a number of reputable banks that do offer mortgage services to foreigners. The three most well known banks/lending institutions that lend to both overseas and locally based buyers are MBK lending, ICBC or UOB Ban. Such institutions typically finance freehold condominiums only and some have other specific criteria so please check each one to see where you qualify. The interest rates range from 7-10%, depending on the borrowed amount and the total value you are borrowing. At these higher interest rates in many cases it does not make financial sense to buy property especially as a pure investment or holiday home and does tend to encourage buyers to pay purely in cash for their property purchases here in Thailand.
Any team member at FazWaz can connect you directly with a representative from any of the lending companies above to further explore what options exist to you.
Option 4) If you are married to a Thai national who has a steady proof of income, you can borrow in their name, and also add your name to the title deed to protect you at the point of sale.
Option 5) The real estate developers and entire property industry is aware of the increased difficulty in getting overseas loans and local mortgages particularly for foreigners and Thais therefore many developers (especially the select exclusive ones working with FazWaz) are offering anywhere from 1-4 years payment plans to help with this aspect.
Typically a small down payment is required in the first 30 - 45 days, around 20-30% of the purchase price, and then further payments made over the course of the build cycle.
A select number of developers are offering post-completion payment plans, which allow you to occupy or rent-out a property that has been completed and make further payments to the developer over a 1-2 year period (developer finance.) The developer may charge between 1-2% interest in this case, but can provide real assistance in financing your purchase and if renting the property out - can help you pay back the property.
Please contact our FazWaz team for property recommendations that offering long-term developer finance.