Learn How To Finance A Real Estate Purchase In Cambodia in 2023?

March 18, 2023

Cambodia is a continuously growing economy with a flourishing real estate market. Because of this, it has attracted many investors and expatriates in recent years. Real estate investment is one of the excellent ways to diversify your portfolio and create long-term wealth. However, financing a real estate purchase can take time and effort. So, financing is one of the most crucial aspects to consider if you're planning to invest in Cambodia's real estate market.

Do you want to purchase or rent a property in Cambodia? IPS Cambodia is one of the best real estate agencies for people looking to buy properties in Cambodia.

This blog post will provide a comprehensive guide on financing a real estate purchase in Cambodia. We will take you through the different financing options available for real estate purchases in Cambodia, including how to obtain a mortgage loan and finance your purchase as a foreigner. We'll also cover the taxes and fees associated with real estate purchases in Cambodia and provide tips for successful real estate financing in this country.

How To Obtain Finances For Real Estate Purchases In Cambodia? 

  • Determine your budget and the specific property needs you are looking to purchase. This will help you identify the financing options that best suit your situation.
  • Research the various financing options available to you. It includes mortgage loans, personal loans, developer financing, seller financing, equity financing, and foreign investor financing.
  • Compare the interest rates, repayment terms, and fees associated with each financing option to determine the most suitable for your needs.
  • Gather all necessary documents, such as identity cards, income proof, credit history, and appraisal reports. After you have all these, prepare for the financing application process.
  • Apply for financing from banks, financial institutions, or the developer or seller, depending on your chosen financing option.
  • Negotiate the terms and conditions of the financing agreement and ask any questions you may have to ensure that you fully understand the deal.
  • Once you secure financing, make timely payments and comply with all legal requirements to avoid penalties or legal issues.

What Are The Financing Options Available For Real Estate Purchases In Cambodia? 

  • Mortgage Loans

Mortgage loans are the most common way of financing a real estate purchase in Cambodia. Banks and financial institutions offer them and typically require a down payment of 30% or more. The interest rates for mortgage loans in Cambodia range from 6% to 8% per annum, and the loan tenure can be up to 20 years.

  • Personal Loans

Personal loans are an alternative to mortgage loans and can be used to finance a real estate purchase in Cambodia. Personal loans typically have higher interest rates than mortgage loans and shorter repayment terms. They may be a viable option for those who don't qualify for a mortgage loan or don't want to pledge their property as collateral.

  • Developer Financing

Some developers offer in-house financing to buyers who purchase their properties. This type of financing usually requires a lower down payment and offers flexible repayment terms. However, the interest rates for developer financing are often higher than mortgage loans.

  • Seller Financing

In this financing, the seller agrees to finance a part of the purchase price. This option can benefit buyers who cannot qualify for other bank loans or prefer to deal directly with the seller.

  • Equity Financing

It involves raising capital from investors who become co-owners of the property. This type of financing is acquired for larger commercial projects. In addition, due diligence and legal documentation are also necessary.

  • Foreign Investor Financing

Some banks and financial institutions have great financing options for foreign investors who want to purchase real estate in Cambodia. However, these loans require a higher down payment and have higher interest rates than loans for Cambodian residents.


In conclusion, financing a real estate purchase in Cambodia can be a complex process, but many options are available to suit your needs and financial situation. To achieve your real estate goals, you can prepare documents, apply for financing from reputable sources, and research your options. 

For assistance with your real estate purchase or rental needs in Phnom Penh, IPS Cambodia can help you easily navigate the process. With the best agents in the local real estate market and contacts with financing partners, IPS Cambodia can help you find the perfect property and get the financing you need to invest in property.


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