Financing a Property in Thailand | Phuket Realtor
What you Need to Know before Financing a Property in Thailand?
Expats obtaining a mortgage from a local bank in Thailand use to be impossible but now is getting easier. Foreigners were facing resistance in obtaining finances so as to invest in Thailand properties. There are now a few financial institutions in Thailand accepting applications to assist with mortgage loans to expats.
If you look around the current financial situation prevailing across the globe, it is pretty good. Many buyers look to Banks in their own countries for financial backing or can explore a wide array of options now available to them. Preparation is the first step and shall help you in determining your current position and availability of foreign loan programs for investors.
Individual property owners in Thailand are sometimes willing to extend terms to those looking to buy their property. This can be requested in a formal offer to the seller with a payment plan spelled out. It helps to be as specific as possible in making the schedule of payments. Of course, the property will not be transferred until the last payment is made. In such scenario, an agreement is worked out reflecting the terms of sale.
Make sure that your realtor knows you are in need of financing terms before purchase. They will have suggestions of where to look and which sellers and developers offer payment terms.
As in Western countries almost all Banks in Thailand offer mortgages to local Thais for real estate purchases. And more recently, thanks to the government’s wish to increase investment, there are more opportunities for foreigners to secure lending. It should be noted that there are strict terms to be met in order to receive financing from a Thai bank which has limits, but this is nonetheless a positive shift in policy.
It is your responsibility to provide all paperwork the Bank will need for the loan.