Property Purchase Financing for Foreigners (2025): Options, Requirements, and Simple Steps
120
9/23/2025
Property Purchase Financing for Foreigners (2025): Options, Requirements, and Simple Steps
Foreign buyers can finance property abroad through several paths. The key is to prepare a clean document pack, understand realistic down payments, and choose a structure that fits your timeline and risk. This guide explains the main options, what banks check, and how to move from pre-approval to completion smoothly.
Quick prep — do this first
1) Define budget and equity (cash available for down payment and closing costs). 2) Build a simple KYC/SoF pack: passport, proof of address, tax ID, income and bank statements, and a short source-of-funds story. 3) Decide if you need a mortgage now or will buy cash and refinance later. If you want help comparing lenders and documents, read about our advisory support.
Financing options — single, clear table
| Option | Typical LTV / Down payment | Rate & fees (general) | Key documents | Best fit | Watch-outs |
|---|---|---|---|---|---|
| Local bank mortgage (non-resident program) | 60–70% LTV (30–40% down) | Market rates; arrangement/valuation fees apply | ID, proof of address, income, bank statements, SoF, property docs | Standard purchases where banks lend to foreigners | Stricter checks; slower timelines; language & translation needs |
| International/private bank mortgage | 60–75% LTV (varies by profile) | Premium pricing; higher minimum income/assets | Enhanced KYC, asset statements, tax returns, banking history | Higher-value deals; multi-country profiles | Relationship banking; larger fees; stricter compliance |
| Developer financing (new build) | Often 50–70% during build; balance at handover | Fixed schedule; sometimes higher effective cost | Reservation/contract, payment plan, ID/SoF | Off-plan or staged construction | Delivery risk; check guarantees, escrow, penalties |
| Cash now + refinance after completion | 100% cash upfront; aim 60–70% LTV later | Refi rate depends on post-completion valuation | Proof of funds, later full mortgage pack | Fast closings; competitive purchases | No guarantee of refi terms; market rate risk |
| Equity release in home country | Depends on home lender policy | Home rates; fees on top-up/second lien | Home property valuation, income, credit checks | Buy abroad using home equity | Cross-currency exposure; parallel obligations |
| Bridge/short-term loan | Lower LTV; higher down or collateral | Higher rates; short maturities | Strong asset/income proof; exit plan | Timing gaps; auction/urgent deals | Refinance risk; fees add up quickly |
What lenders look at
Income & stability: employment or business history, debt ratios. Assets & reserves: savings to cover down payment + costs + cushion. Credit & behavior: past loans, payment history. Property: valuation, legal status, permitted use. Compliance: clear source-of-funds and matching bank evidence.
Eligibility & documents — quick checklist
Passport and proof of address; tax ID; recent bank statements; income proofs (employment or business); asset statements; simple SoF narrative referencing the contract/invoice; property documents (title extract/deed ref, plan); translations or apostille where required.
Costs of borrowing (beyond interest)
Arrangement fee, valuation fee, legal fee, notary/registry, insurance (property and sometimes life), bank/transfer charges, and potential early repayment fees. Add these to your yield math before you commit.
Timeline (indicative)
Pre-approval: 1–3 weeks if documents are ready. Underwriting: 2–6 weeks depending on checks and valuation. Signing & completion: 1–2 weeks once funds and documents align. Coordinate dates with seller, bank, and notary to avoid last-minute gaps.
How to make payments safe
Use escrow where available, or mirror escrow controls in the contract for direct transfers. Match the wire narrative to the contract or invoice and keep MT103 copies. For end-to-end coordination across lenders, contracts, and closing, explore our services.
Two expert notes
“As a foreign buyer, plan for a higher down payment and more paperwork — having the pack ready can cut weeks.” — Noah, Mortgage Specialist, VelesClub Int.
“Model total cost, not just the rate: taxes, bank fees, FX, and insurance change your true yield.” — Maya, Tax & Structuring Consultant, VelesClub Int.
Common mistakes (and easy fixes)
Expecting resident LTV → plan 30–40% down; confirm lender policy early.
Late documents → build the KYC/SoF pack before property search.
No valuation buffer → allow for lower appraisals; negotiate price or equity.
Ignoring FX and transfer timing → plan value dates and keep proof of rate and MT103.
FAQ
Can foreigners get a mortgage? Yes, but usually with higher equity and stricter checks.
Is developer financing cheaper? Not always — compare the effective cost and delivery guarantees.
Is cash + refinance safer? It wins speed but exposes you to future rate and valuation risk.
Do I need a company (SPV)? Only if required or helpful for ownership; it adds admin and banking checks.
Next steps
If you want side-by-side lender comparisons and document coordination through to completion, learn more about our advisory support. For a broader overview of what we do for global buyers, explore our services.
VelesClub Int. supports buyers with compliant payments, due diligence, and coordinated closings worldwide.
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