Can Foreigners Get Home Loans in Cambodia?

When you want to buy your dream home, the processes you need to go through are straightforward. Numerous guides informing you exactly what you need to know are available online as well as Cambodia real estate agency that can guide you through the process and make it easier. However, if you are a foreigner in Cambodia, buying a home can be a bit more difficult than usual—albeit not impossible.

If you have the funds to invest in a home by buying it completely in one payment, the process is easier! On the other hand, if you need a home loan, it’s not improbable even if you’re an expat. Getting a home loan as a foreigner in Cambodia is possible although the options are limited. Find out how it works, continue reading below.

How to get a home loan as an expat

Cambodia’s economy and industries have been drastically improving for the better for decades, especially in their banking sector. Before, there were little to no banks that cater to foreigners but now there are a few established banks that allow expatriates to open accounts. Not only that, but expats can apply for home loans within these banks. 

Some of these banks where foreigners like you can apply for a home loan are the following:

• RHB Cambodia 
• Canadia Bank  
• Vattanac Bank 
• Public Bank Berhad 
• Advanced Bank of Asia 

Once you’ve chosen which bank you want to apply for a home financing, you need to prepare the requirements that you need to pass to the bank as part of the application. If you are currently employed, then here are the basic requirements you need:

• A valid passport / a national ID
• A valid work permit
• A copy of your Curriculum Vitae
• A copy of your Employment Contract or Certificate
• A Sales Purchase Agreement
• A copy of your payslip for the past 3 months, a bank statement, or passbook
• A copy of passing credit check from Credit Bureau of Cambodia

On the other hand, if you are a business owner in Cambodia or self-employed, here are the requirements you need to prepare:

• A copy of 3 months invoice for sales or purchases
• A bank statement
• A copy of your business registration
• A valid business license
• A valid business patent
• A company profile
• A copy of your financial statement for the previous  two years
• A copy of passing credit check from Credit Bureau of Cambodia
• A Sales Purchase Agreement
• A valid passport or national ID

Take note though that the banks can request for more requirements as part of their application besides the above.

Property and land laws for expats

Cambodia is strict in regards to its property and land laws for expats. The law indicates that no foreigner can own land since this is only applicable to its citizens. However, there are different kinds of property titles that can allow an expat to own a property but not the land it stands on. Here’s a brief overview of the property titles:

• មានប្លង់រឹង: The hard title is the strongest form of ownership on a property in the country since it’s recognized both at the national level and at the local government level. Only locals are permitted to own a hard title on properties.
• ប្លង់ទន់: The soft title is often given to property owners and it’s recognized only at the local government level. Similar to hard titles, it’s given only to locals.
• ប្លង់រឹង: The strata title gives ownership to sections of a building to locals and expats alike. For example, foreigners are allowed to own a unit in a condominium. However, a restriction is set here since expats can only own up to 70% of a property and the remaining 30% should be owned by locals.
• ប្លង់រឹង LMAP: The LMAP title is recognized at the national and local government levels. It’s only given to locals since this title recognizes clear borders on a specific land.

Given the above restrictions on property ownership, the best option to get a home financing loan for expats are condominium units. While the option seems limited, there are numerous types of condominium units you can invest in: from a studio unit up to a penthouse.

Tips to getting home loans as an expat

The process of getting a home financing can be difficult for foreigners but getting your dream home is always worth it! To make it easier for you, make sure that you have a trusted agent to help guide you through the process. This is because most contracts are written in Khmer so it’s best to have someone who understands it and contract terminologies. Additionally, the contract can also be provided in English however the Khmer contract takes legal precedence so make sure to have a reputable agent with you.

If you’re finding it difficult searching for a knowledgeable and well-versed agent, we can help you! Contact us now to make the process of owning your dream home easier and within reach.