Mortgage in Thailand for Foreigners

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Thai properties are very sought after among foreign nationals especially those who are looking forward for a long term stay or even to retire in the Kingdom. Yet reality wise, not all of them do have the finances required at the right time or the right finances to acquire the properties that they so wanted to have leaving mortgage as one of their accesses to secure them.

The availability of mortgage on foreign nationals used to be rare in Thailand but due to policy changes lately, non-Thai nationals may now be able to access it through several banking institutions. Meaning to say, access to mortgage in the Kingdom by a foreigner is limited to a few banks only.

The Civil and Commercial Code, specifically Section 702 until Section 746, prescribes the items for mortgages as well as the requirements to be adequately followed by someone who is aiming to become a mortgagor:

• The mortgaged property must be specifically cited in the mortgage contract.
• The sum or the maximum amount to be assigned as security should also be cited on the contract and it must be in Thai Baht.
• The contract must be in writing.
• It should also be registered.

If a foreigner is to obtain a mortgage but he is married to a Thai, the property should be registered under the name of the foreigner.

Now, the mortgagor must make sure that he will be able to address his obligations otherwise the mortgagee may opt to file for a court action. If the court will favor the mortgagee, the property will then be seized and be sold through an auction.