Thailand Mortgages

Some Thai banks recently started viewing foreigners as an investment opportunity rather than a credit risk. This has made mortages generally more accessible with around 50% finance set as the average lending amount. Unless you are a reputable developer with a proven track record - for such investors, 70% finance has occasionally been granted.

For private purchases, many western investors still opt to take out a loan in their home country and then transfer the funds at whatever the current exchange rate might be to a Thai bank account. Developers also offer various financing options, which generally effect the initial deposit and other key payments during the construction phase of a property bought off plan.

This is very often the most competitive choice for investors and many buyers opt to take up these shemes. Another option is to generate funds through equity release, which allows people to borrow cash against their foreign home without having to sell up and move house. For those with property in their own country, such an approach may be considered favourable.

Before making a commitment, however, it is always advisable to discuss the various investment strategies with a lawyer, a reputable agent that has experience in the area, or even to recruit the services of a financial advisor.