When you’re done with the necessary due diligence to choose a real estate property in a Borey, the next step would be how to secure it. Whether you want to invest in the home as something you can profit from or you plan to live in it, you need to settle your payment plans first. One surefire way of getting the home you want is to mitigate the payments using a home loan from a bank.
This is the most common way of buying a home since banks do a comprehensive background check on applicants to ensure they can shoulder long term payments. To make sure you are approved for a loan, read the curated information on how to buy Borey through bank loans [below].
Prepare Sales Purchase of Agreement
Once you’ve settled the process of buying in a Borey, you will be given a Sales Purchase of Agreement. This is a contract indicating the developer or previous owner will transfer the property title to you and purchase price should be indicated. Banks include this in their requirement for home loans so make sure you have it alongside the hard title of the property, securing the transfer of ownership.
Choose a reliable bank
Cambodia has seen a rise in numerous local and international banks in recent years, all providing various services including loans. These banks are all reliable but they offer different perks so make sure to choose one that suits you best. Another factor to consider is if you’re a foreigner, to choose a bank that will approve a loan to expats.Some of the banks that offer home loans are ACLEDA, CIMB Bank, Maybank and more.
Determine if you’re eligible for a loan
Before you can apply for a loan, you need to determine if you’re eligible for it. Usually, banks post the qualifications of those who can apply so it’s easy to check. To make it easier, here’s the brief summary of qualifications for a home loan:
- Be a citizen of Cambodia (applicable for Individual or Joint ownership applications)
- Borrower must be between 18 – 65 years old during loan period
- A stable income
- Have a good record
Prepare bank requirements
Banks have different requirements for home loans with some asking for more documents. However, the basic ones you need to prepare are the following:
- Passport, National Identification Card, or other identification cards
- Family Book
- Residential Book
- Marriage certificate (only if applicable)
- Land title
- Sales Purchase Agreement
- Employment contract, payslip for the past three months, or other evidences of income
- Proof of repayment document
Additional requirements for expats
Home loans in Cambodia aren’t just for locals since expats can apply and be approved for it too. The previous bank requirements apply but more documents are requested for foreigners as you can see below:
- Employment contract or certificate
- Work permit
- Curriculum Vitae
- A passing credit check from Credit Bureau of Cambodia
If you’re a business owner or self employed in the country, then additional requirements are the following:
- Business license
- Recent business patent
- Business registration
- Last 2 years financial statement
- Company profile
- Purchase invoice or 3 months sale
Start application to buy in a Borey
Now that you’ve made sure you’re qualified for a home loan and have prepared the documents, you can start the application! Take note that despite all the documents you passed to the bank, they will still do a comprehensive background and credit check. Additionally, approval for a home loan can take weeks since the property you want to buy will be used as a collateral. In order for it to be used, transfer of ownership is necessary which can take as long as 14 weeks.