How to compare mortgage offers in Thailand

How to compare mortgage offers in Thailand

Comparing Thai mortgages involves more than just the headline rate. Consider overall cost, interest structure, and flexibility. Check if early repayment, refinancing, or rate-lock options are included in the terms.

Key elements to evaluate

• Effective rate: Includes fees and reflects the actual borrowing cost—not just the advertised rate.

• Fixed vs. floating periods: How long is the fixed-rate period? When and how does it shift to variable?

• Fees and charges: Processing fees, valuation, legal, and mortgage registration fees typically range 2%–5% of the loan.

• Prepayment terms: Check if early payoff is allowed and what penalty applies.

• Foreign buyer policies: Foreigners must remit funds in foreign currency and show FET (Foreign Exchange Transaction) forms.

Use bank websites and portals like DDproperty, Hipflat, or ThinkofLiving to compare current deals. Some lenders run promotions during Thai New Year or year-end sales, with discounts on fees or free property appraisals.

Tips for better loan terms

Build a strong credit record, save for a larger down payment, and avoid multiple credit applications. Foreigners should consider using a local guarantor or co-borrower. Developers sometimes help expedite approvals through bank partnerships.

Understanding mortgage types in Thailand

Understanding mortgage types in Thailand

In Thailand, mortgages—commonly known as housing loans—are used for purchasing, building, or renovating homes. Most are issued by local banks and regulated by the Bank of Thailand. Loan terms and interest rates vary based on citizenship, income level, and property value. Foreigners are generally limited to condo purchases with strict LTV and remittance rules.

Main types of Thai mortgages

• Fixed-rate mortgage: Locked interest rate for the first 1–3 years. Good for initial stability.

• Floating-rate mortgage: Tied to MLR/MRR/THBFIX. May increase over time depending on market rates.

• Step-up loan: Starts with low payments and increases gradually. Useful for young buyers with rising income.

• Refinancing mortgage: Switch existing loan to a new bank with better terms or add a top-up loan.

• Developer-backed loan programs: Some property developers partner with banks to offer promotional rates or pre-approved loans.

Loan tenures range from 5 to 30 years. Thai citizens typically need a 10%–20% down payment, while foreigners often require 30%–50%. Interest rates average 5%–7% annually but vary by lender and borrower profile.

Who can apply for a mortgage?

Thai citizens, permanent residents, and foreigners with valid work permits or long-stay visas may apply. Most banks require proof of stable income, employment verification, and a clear credit record. Required documents include Thai ID or passport, work permit (for foreigners), salary slips, bank statements, and the sales agreement.