Private credit has become one of the defining investment themes of the post-pandemic financial landscape globally. In Asia, and specifically in Thailand, it is filling a financing gap for property owners that the traditional banking system has never adequately addressed. For foreign property owners in Thailand, understanding private credit, what it is, how it is structured, and who provides it, opens up financing possibilities that most people in this situation have never encountered.
Global Mortgage Group has access to private credit providers active in Thailand. Contact Donald Klip to explore whether private credit is the right solution for your Thai property.
Donald Klip | [email protected] | +65 9773-0273 | gmg.asia
Private Credit Defined
Private credit refers to debt financing provided outside the public debt markets and outside the regulated commercial banking system. In the property context, it encompasses a range of products: direct real estate lending, bridge financing, mezzanine debt, preferred equity, and other structured solutions that sit between conventional bank loans and equity investment.
Private credit lenders are typically institutional or semi-institutional: private debt funds, family offices, specialist finance companies, and in some cases high-net-worth individuals who deploy capital at scale. They are distinct from the informal private lenders who provide individual Kai Faak transactions, though the two categories overlap at the edges.
Why Private Credit Works for Thailand
The Thai property market has characteristics that make it attractive to private credit lenders despite, or perhaps because of, the absence of conventional bank financing for foreign owners. Asset values are demonstrable and growing. The foreign ownership pool is large and financially substantial. The gap between what the market needs and what Thai banks provide is enormous, creating clear commercial opportunity. And the returns available to private credit lenders in Thailand, given the absence of bank competition, are meaningfully higher than in more developed lending markets.
For borrowers, this creates a genuine market. Multiple private credit providers are active in Thai real estate lending, and while their products are more expensive than bank financing, they are real, available, and in many cases the only path to liquidity for foreign-owned Thai assets.
THE PRICING REALITY
Private credit lending against Thai property typically prices in the range of 8-18% per annum for structured products from institutional-quality private credit providers. Informal Kai Faak from private individuals can run higher. The right benchmark is not Thai bank mortgage rates, it is the cost of alternative capital or the opportunity cost of leaving equity locked.
How Private Credit Transactions Are Structured
Private credit transactions in Thai real estate are typically structured as one of three things: a direct loan secured by a registered charge over the property where legally possible; a Kai Faak conditional sale structure; or a cross-border facility where the Thai property supports a loan arranged through an offshore entity.
The choice of structure depends on the property type, the borrower's circumstances, the lender's preferences, and the regulatory and tax considerations applicable to the specific transaction. Each structure has different implications for documentation, cost, tax treatment, and enforcement in the event of default. Proper legal and financial advice before structuring any private credit transaction is essential.
Who Provides Private Credit for Thai Property
The private credit provider landscape for Thai real estate in 2026 includes several distinct categories. Regional private debt funds, based primarily in Singapore and Hong Kong, have developed Thai real estate lending as part of a broader Asia-Pacific mandate. These funds typically have minimum transaction sizes in the range of THB 20-50 million and operate with professional documentation and credit assessment processes.
Specialist Thai non-bank lenders, some of which operate with regulatory authorisation under Thai financial services legislation, provide both Kai Faak-style and more conventional secured lending products. Their market knowledge is deep but their appetite for foreign borrowers varies.
Cross-border mortgage specialists, operating from Singapore, Hong Kong, the UK, Australia, and other centres, have developed Thai property finance capability as part of a suite of cross-border mortgage products. These lenders can often structure financing that combines Thai property with offshore assets, expanding what is achievable.
"Private credit in Thailand is not a niche product for unusual situations. It is the primary financing mechanism for the entire foreign property owner population, which runs into the hundreds of thousands of people."
- Donald Klip, Global Mortgage Group
Global Mortgage Group works with private credit providers across Thailand, Singapore, Hong Kong, and Australia. Contact Donald Klip to find the right match for your situation.
Donald Klip | [email protected] | +65 9773-0273 | gmg.asia
Due Diligence in Private Credit Transactions
Private credit transactions in Thai real estate require thorough due diligence on both sides. As a borrower, you should conduct due diligence on your lender: verify their regulatory status or lack thereof, understand their track record, review their documentation carefully, and ensure their terms are clearly stated and legally enforceable.
Lenders will conduct due diligence on the property, including independent valuation, title search, and market assessment, and on the borrower, including identity verification, source of funds documentation, and exit strategy assessment. This is more rigorous than Kai Faak from a private individual, and appropriately so given the larger transaction sizes and more formal structure involved.
Engaging an experienced intermediary who has already vetted the lender landscape and can guide you through the due diligence process on both sides significantly reduces the risk of a transaction going wrong. It can also help you compare private credit against releasing equity without selling through other structures, and typically results in better terms, as intermediaries with established lender relationships can negotiate more effectively than first-time borrowers approaching the market cold.
Ready To Unlock Your Thai Property?
Global Mortgage Group specialises in cross-border property finance for foreign owners across Thailand.
Donald Klip | [email protected] | +65 9773-0273 | gmg.asia
