Mortgage in Thailand: interest rates for foreigners in 2024
In Thailand, there are no bank mortgages for non-residents. The only financial institution in the country that provides loans to foreigners for real estate purchases is the MBK Group. However, foreigners can distribute their real estate payments even without a loan, since most developers offer instalment plans, and some of them are willing to provide such plans for up to 5 years after the building is put into operation. Let’s take a closer look at both loan and instalment conditions for foreigners.
Interest rates on loans from MBK are significantly higher than instalment fees from developers. MBK issues loans for buying an apartment at 12% per annum, while the developer’s rate in Phuket is 3–7% depending on the instalment period. In addition, when choosing an instalment plan instead of a loan, no documents need to be collected. For clients, the choice is clear.
Mortgage from MBK
The MBK Group provides loans for the purchase of condominium apartments in the primary and secondary property markets of Bangkok and tourist resorts for both investment and residence purposes. These loans are issued only in Thai baht and cannot be issued for properties under construction.
Maximum LTV ratio | 50% |
Minimum loan amount | 1,000,000 baht ($29,000) |
Fixed rates | Approx. 12% per annum |
Loan term | From 1 to 10 years |
Maximum borrower’s age by the end of the loan term | 70 years old |
From $109,000
Completion in: 2026.I Total of 789 apartments
From $179,000
Completion in: 2025.I Total of 400 apartments
From $171,000
Built in 2023 Total of 251 apartments
$157,000
Total area 30 m² Studio
From $130,000
Completion in: 2025.IV Total of 231 apartments
From $71,000
Completion in: 2025.III Total of 609 apartments
From $53,000
Completion in: 2026.II Total of 186 apartments
From $130,000
Yield 5.0% Completion in: 2027
Documents required for getting a mortgage in Thailand
Unlike banks in Thailand, MBK does not require borrowers to provide a residence permit, work permit or proof of marriage to a Thai citizen. Additionally, the borrower’s source of income may be located abroad.
To get a loan to buy an apartment in Thailand, one needs to submit the following documents to MBK:
For individuals:
- passport valid for at least 6 months at the time of application, with a valid visa (if required) and a Thailand arrival stamp;
- marriage or divorce certificate (if any);
- spouse’s consent to the loan. Sometimes spouses are required to act as co-borrowers;
- bank statements for the last 6 months;
- credit bureau reports from the borrower’s home country;
- utility bills as proof of address (for non-residents).
For legal entities:
- company’s official affidavit valid for at least 3 months;
- list of shareholders (form Bor-Or-Jor. 5);
- directors’ passports valid for at least 6 months;
- financial statements audited by a certified public accountant;
- bank statements for the last 6 months;
- credit bureau reports for both the company and its directors;
- utility bills as proof of address (for non-residents).
Real estate documents:
- certificate of ownership;
- valuation report;
- depositary receipt.
All documents must be translated into English or Thai. The loan is usually issued within 10 business days after submitting the documents.
Extra mortgage costs in Thailand
The borrower additionally pays commissions and fees, including valuation and insurance ones.
Payments and fees | Expenses |
Upfront charge | 1.25% of the loan amount (minimum 30,000–40,000 Thai baht) |
Mortgage arrangement fee | 1% of the loan amount |
Stamp duty | 0.05% of the loan amount |
Early repayment penalty | 2% of the prepayment amount |
Instalment plans from developers
Instalment for the construction period is a common practice in many countries, including Thailand. Payments in such cases are distributed in proportion to the construction stages. Although instalments during the construction period are interest-free, developers usually offer a discount of up to 10% if the full amount is paid upfront.
In some projects, the instalment plan can be extended for up to 5 years after the property is commissioned. In this case, the buyer pays 50% of the property cost before the construction is completed, and the remaining 50% is distributed over the required period with an additional payment of 3–7% per annum (the shorter the instalment period, the lower the rate).
Ownership of the property is transferred only after full payment. However, some projects allow the property to be used immediately after the down payment and completion of construction, before the instalment plan is paid off.
Given the year-round tourist demand in Thailand’s resort regions, where rental yield under guaranteed yield contracts is at least 5% per annum and the yield under rental pool schemes can exceed 8% per annum, instalment fees and loan rates do not seem so high. Especially in comparison with other countries popular among foreign investors, where the yield is lower, and the rates are commensurate or higher.
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