Compass Real Estate > Cambodia Investment Guides > Real Estate Policy > Buy and Sell Policy > Can foreigners apply for housing loan in Cambodia? What are the requirement?

Can foreigners apply for housing loan in Cambodia? What are the requirement?

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2021-11-30
Summary:With the increasing number of foreigners buying real estate in Cambodia, many people wonder if foreigners can buy a house with a loan in Cambodia.

In recent years, Cambodia has become a country with the fastest economic growth in Southeast Asia and even the world, and its real estate industry has also begun to develop rapidly. With the increasing number of foreigners buying real estate in Cambodia, many people wonder if foreigners can buy a house with a loan in Cambodia.

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The answer is definitely YES! With the improvement of the investment environment, Cambodia has attracted a large number of foreigners to invest and live in Cambodia. More and more banks are also seeing the development potential of foreigners' loans to buy houses in Cambodia and provide excellent loan conditions for this. In 2019, foreigners can apply for housing loans for up to 12 years, 65% of the total loanable property price, and an annual interest rate of about 9.96%. In just a few years, more banks in Cambodia have begun to provide preferential loan policies, and some even offer the same loan ratio for foreigners as Cambodian locals.

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Although foreigners can apply for loans to buy a house in Cambodia, but the threshold for foreigners' loans is higher than for locals.

I. How to apply for a loan

1. Applying for a loan from the bank: First, you must consider these two points before applying for a loan from the bank.

    a. Provide proof of income: proof of income is an important basis for banks to assess whether the borrower has the ability to repay the loan, and to a large extent it determines whether the loan application can be approved.

    b. Choose a trustworthy and economically strong lending bank: Cambodian housing loans have floating interest rates. In other words, during the loan tenor, the lending bank can change your loan interest rate. Therefore, when choosing a lending bank, you must choose a trustworthy and economically strong one.

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2. Apply for a loan from the developer: If the loan you applied to the local bank fails, you can also choose to apply for loans from the developer. Some developers also provide loans, the procedure will be slightly easier, but the interest rate is relatively high. However, it should be noted that some developers in Cambodia have little transparency in their operations. So if you want to avoid problems in the future, you must conduct a detailed investigation of the developer company you plan to buy.

II. Banks that provide home loans

1. Maybank

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2. Shinhan Bank

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3. RHB Bank

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4. Bank of China

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III. Requirement for loans

a. The borrower must be between 18 and 65 years old

b. A Valid ID/Passport

c. Bank Statement/ Proof of Income (3 months’ Pay slip)

d. Sell Purchase Agreement

e. Real Estate Hard Title as Collatera

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f. Valid Business Registration or Proof of employment

g. Property Valuation

Lastly, COMPASS Real Estate would like to remind all homebuyers to carefully choose lending institutions when applying for a housing loan. There are various banks and lending institutions which include good and bad mixes. The loan interest rates of informal lending institutions sometimes are much higher than formal lending institutions.

Disclaimer: The re-forward articles on Compass website are for the purpose of conveying more information, and it does not mean that the Compass website agrees with its views or confirms the authenticity of its content. Article noted as "Source: Compass original", please note that the source from Compass. The content of the article is for reference only and should not consider as investment advice, and it does not mean that Compass agree with its views.

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