Considering an investment in property, like houses, in Cambodia can be a great opportunity, but it may come with its challenges. Some individuals prefer not to invest all their funds in property or may not have enough capital. By that reason, seeking a bank loan is often their first choice. Whether you are a Cambodian citizen or an expatriate, you can apply for a bank loan. The bank will have different requirements based on whether you are an employee or self-employed.

Currently employed individuals, here are the essential requirements you will need.

• National ID or Passport
  • The documents must be Valid
• Proof of Income
  • Employment contract or Certificate
  • Pay slip for a least the past 3 month, bank statement or passbook
• Credit History
  • Credit report from your home country or Cambodia (If available)
  • Passing credit check from Credit Bureau of Cambodia
• Property Document
  • Sale and Purchase Agreement
  • Property Valuation Report (That is often arranged by the bank)
  • Title deed or ownership documents
• Financial Information
  • Bank Statement (6-12 month)
  • Proof of other assets along with liabilities
• Other Document
  • Personal reference letter
  • Proof of current address (Utility bills or Rental Agreement)
  • Depending on the bank, they might require some additional documents like tax returns or business registration documents.

Self-employment individuals, here are the essential requirements you will need.

• National ID or Passport
  • The documents must be Valid
• Proof of Address
  • Utility bills or Rental Agreement
• Bank Statement
  • Personal and Business bank statement (6-12 month)
• Business Registration Documents
  • Business Registration Certificate
  • Business License
  • Other Relevant document to prove the legitimacy of your business
• Financial Statement
  • Profit and Loss Statement
  • Balance Sheets
  • Financial records of the business for the last 2-3 years (Prepared by a certified accountant)
• Tax Return
  • Personal and Business tax return for the last 2-3 years
  • Reports of income, expense and other relevant financial information
• Property Information
  • Details of property you intend to purchase
  • include sales and purchase agreement or booking form
• Credit History
  • Depending on the bank, they might need a credit report from your home country or from Cambodia if you have established credit there.
• Down Payment Proof
  • Evidence of funds available for down payment
  • Some percentage of the property price

Which bank to choose applying for a home loan?

• Local Banks
  • Canadia Bank
  • ABA Bank
  • ACLEDA Bank
• International Bank
  • J trust (formerly ANZ Royal)
  • Maybank
  • BRED Bank
  • Hong Leong Bank
  • Sathapana Bank

Interest Rate and Terms 

• Interest rate in Cambodia can range between 7% to 10% per year. The number depends on the bank, financial situation along with the loan term. Loan term ranging from 10 to 25 years.

Additional Tips and Advice 

• Securing a home loan can be challenging for foreigners, but the effort to get your dream home is always worthwhile! To simplify the process, it’s important to work with a reliable agent who can guide you. Most contracts are in Khmer, so having someone who understands the language and legal jargon is crucial. While you might find English versions, remember that the Khmer contracts are the official ones, so a good agent is key. If you’re struggling to find an experienced agent, Cam Realty is here to help! Reach out to us today to make your journey to homeownership easier.