Home Loan Cambodia 101: Buying Your First Home

Home Loan in Cambodia
Sovannarith Chea

Throughout this article, you may:

  • Explore the Cambodian real estate market and understand the role of home loans in your property journey.
  • Learn about eligibility criteria for securing a house loan and navigate the application process effectively.
  • Understand vital aspects such as interest rates, loan terms, and efficient financial management strategies.
  • Discover tax implications related to your home purchase and repayment strategies to secure your financial future.
ADA Cambodia
Table of Contents: home loan 101


Welcome to an exciting new chapter in your life – the journey to owning your first home in the stunning country of Cambodia. Absolutely, buying a home isn’t only about having a space; it’s about establishing a foundation, creating lasting moments, and ensuring a better tomorrow for you and your loved ones.

Recent surveys indicate that in Cambodia, property prices between USD $50,001 to $75,000 are particularly appealing to locals. But how can they secure the funds for such a purchase? One crucial resource that can transform this dream into reality is understanding the world of home loans in Cambodia. Let’s explore this essential avenue together.

Understanding the Cambodian Real Estate Market

Before we get into the details of home loans, let’s discuss Cambodia’s real estate scenario. Recently, cities like Phnom Penh, Siem Reap, and Sihanoukville have witnessed a surge in new buildings and houses.

Home Loan in Cambodia

This growth can be attributed to the increasing interest in home purchases, not just among locals but also among foreigners, making Cambodia an attractive destination for real estate investment.

Knowing this market is a must. It helps you make savvy choices about when and where to snag your very first home. Here are some key things to keep in mind:

Location Matters

Different parts of Cambodia come with varying property price tags. For instance, the heart of Phnom Penh tends to be pricier compared to the outskirts. When you’re picking a spot, keep your preferences and budget in mind.

Are property values on the rise, or are they holding steady? Any big projects in the pipeline that might shake up property prices? Staying in the know helps you time your purchase just right.

Cambodia Property Market Trends

Local Amenities

Think about how close you are to must-have amenities like schools, hospitals, markets, and public transport. A home that ticks the convenience box can seriously amp up your quality of life.

Future Growth

Check out what’s brewing for growth in the area you’re eyeing. Any big plans for new infrastructure or businesses setting up shop? These things can have a say in property values down the line.

The Importance of Homeownership

Now that we’ve explored Cambodia’s real estate landscape, let’s delve into why owning a home is such a noteworthy milestone and a wise investment.

Stability and Security

Imagine having a place to call your own, a sanctuary where you can create cherished memories with your loved ones. That’s the kind of stability and security that homeownership offers. When you own a home, you don’t have to depend on landlords or stress about rent going up. You have control over your living space, and that’s remarkably empowering.

Long-Term Financial Growth

Real estate has a proven track record as a prudent investment. Property values typically appreciate over time, potentially resulting in substantial profits when you decide to sell your home. Moreover, owning property can generate rental income if you opt to lease it out. It’s a smart financial plan that can help you and your family for many years.

Types of Home Loans Available in Cambodia

ADA Cambodia Home Loans

At ADA Cambodia, a reputable loan provider, they can make your dream of homeownership a reality. Their home loans are designed to offer flexible and accessible financing options for aspiring homeowners. ADA Cambodia understands that owning a home is a significant goal, and that’s why they provide competitive interest rates and terms that suit a wide range of individuals.

To qualify for a home loan from ADA Cambodia, you’ll need to meet their eligibility criteria, which typically include demonstrating financial stability and a dependable source of income. With their commitment to financial empowerment, securing a home loan with them is a practical and convenient step toward achieving your homeownership dreams.

Government-Supported Home Loans

In Cambodia, the government recognizes the importance of homeownership and offers support to make it more achievable. One such support is government-backed home loans. These loans usually have good interest rates and terms for people buying their first homes.

Home Loans from Commercial Banks

Commercial banks in Cambodia also provide home loan solutions to a wide customer base. However, terms and interest rates can vary between banks. You’ll need to meet some requirements like a good credit history and stable income to get a home loan from a commercial bank.

There are pros and cons between different home loans. ADA Cambodia home loans make the home-buying process as straightforward as possible. Government-backed loans often have lower interest rates, while commercial bank loans offer more flexibility.  Certainly, you should assess the market and make your choice based on what aligns with your financial situation and preferences.

Eligibility Criteria for Home Loans

You’re on your way to becoming a homeowner after exploring Cambodia’s real estate landscape. Now, let’s discuss the important part about home loans. You’ll need to meet lending guidelines set by lenders to secure a home loan. Let’s see these criteria so you’re all set for the application process.

Financial Stability

Securing a home loan in Cambodia depends on your financial stability, a key element for lenders. They aim to confirm that you possess a reliable income source to meet your mortgage payments consistently. Lenders typically consider these factors:

Income Requirements: To satisfy the income requirements, you must show a consistent income that meets the lender’s minimum criteria. This income can come from various sources like employment, owning a business, or investments.

Credit History: Your credit history holds significant weight in the loan approval process. Lenders will scrutinize your credit report to assess your creditworthiness. A favorable credit score can enhance your prospects of obtaining a loan.

When applying for a home loan in Cambodia, you need to adhere to specific legal prerequisites. These regulations are in place to safeguard both you and the lender. Take ADA Cambodia as an example, some typical legal considerations including:

Age: You must be of the legal age for entering contracts in Cambodia, typically 18 years or older.

Documentation: ADA Cambodia will request specific documents such as identification, proof of income, and property particulars. Ensuring that you have all the necessary paperwork in order is crucial for a smooth application process.

Property Title: The property you intend to purchase should possess a clear and legally recognized title. ADA Cambodia will conduct an investigation to confirm the property’s title.

Insurance: ADA Cambodia might mandate property insurance to safeguard their investments in case of unexpected situations.

Citizenship and Residency Status

Your citizenship and residency status can also impact your eligibility for home loans in Cambodia. Some online lenders like ADA Cambodia may have specific loan products tailored to non-citizens or expatriates living in Cambodia. It’s essential to inquire about these options if they apply to your situation.

Employment and Income Stability

Lenders prefer borrowers with a stable employment history and income source. If you’re employed, having a consistent job with a reputable employer can boost your chances of loan approval. Self-employed individuals may need to provide additional documentation, such as business financial statements, to demonstrate income stability.

Employment and Income Stability

Loan Purpose

Lenders often inquire about the purpose of the loan. In this case, it would be for purchasing a home. Be prepared to explain your intent and demonstrate your commitment to homeownership.

Down Payment

While some loan programs may offer low down payment options, it’s generally a good practice to have some savings for a down payment. A larger down payment can positively influence your loan terms and interest rates.

The Application Process

Now that you have mastered the eligibility criteria for home loans in Cambodia, let’s guide you through the loan application process. Navigating this process effectively is key to transforming your dream of owning a home into reality.

Step 1: Preparing Your Documents

Before you initiate the loan application, gather all necessary documents. If you are going to apply home loan at ADA Cambodia, these typically include the:

Proof of Identity: Passport, National ID, or any government-issued ID.

Proof of Income: Recent payslip, tax returns, or business financial statements for the self-employed.

Proof of Income

Proof of Residence: Utility bills or any official document confirming your address.

Property Details: Title deed, sale agreement, and property valuation report.

Ensure all your documents are up-to-date and well-organized. Having everything ready streamlines the application process.

Step 2: Loan Application Submission

Once your documents are in order, then you can submit your loan application. Some lenders allow you to apply online. This convenient method saves time and allows for a smooth submission process.

Step 3: Application Review and Approval

After submission, your application goes through a comprehensive review. ADA Cambodia will assess your financial stability, creditworthiness, and the property’s value. This evaluation might take a few weeks, so your patience during this period is vital. Different from home loan, the approval of quick loan Cambodia normally under 24 hours.

Simultaneously, ADA Cambodia will conduct property valuation and legal checks. A professional appraiser assesses the property’s value, ensuring it aligns with the loan amount.

Step 5: Loan Approval and Offer

Upon successful review, you receive a formal loan approval. ADA Cambodia presents you with a loan offer outlining the terms, interest rates, and repayment schedule. Take your time to read this document thoroughly. If everything meets your expectations, you can proceed to the next step.

Step 6: Signing the Agreement

When you’re happy with the loan offer, it’s signing time! This document clarifies your duties as the borrower and the lender’s terms. Both parties have legal experts present to help with any questions you might have.

Step 7: Disbursement of Funds

After signing the agreement, ADA Cambodia disburses the loan amount to the seller or developer. This step finalizes the purchase, and you officially become the homeowner.

Interest Rates and Loan Terms

Now that you’ve secured your home loan, understanding the intricacies of interest rates and loan terms is essential for responsible homeownership. Let’s unravel these aspects, ensuring you make informed choices that align with your financial goals.

Interest Rates Simplified

Interest rates can significantly influence your monthly mortgage payments and the overall cost of your home. In Cambodia, interest rates can be fixed or variable:

Fixed Interest Rates: With a fixed rate, your interest remains constant throughout the loan term. This stability provides predictability, enabling you to budget effectively. ADA Cambodia, among other lenders, offers competitive fixed rates, ensuring your payments remain steady.

Variable Interest Rates: Variable rates can fluctuate based on market conditions. While they might start lower, they can increase, impacting your monthly payments. It’s essential to assess your risk tolerance and financial stability when considering variable rates.

Loan Terms

Loan terms refer to the duration of your mortgage. Common terms in Cambodia range from 10 to 30 years. Here’s what to consider:

Loan Terms

Shorter Terms (e.g., 10-15 years): Shorter terms mean higher monthly payments but lower overall interest costs. This option is suitable if you can afford higher payments and want to pay off your loan faster.

Longer Terms (e.g., 25-30 years): The longer loan terms give you flexibility in your monthly budget, it can be more expensive over time. 

Consider your financial objectives, stability of income, and long-term plans when selecting a loan term. It often involves balancing present affordability with future financial security.

Home Loan Repayment Strategies

Managing your home loan efficiently is not just about making monthly payments; it’s about strategically handling your finances to secure your financial future. Here are some strategies for you to make sure you repay your home loan effectively: 

Budget Wisely

Create a realistic budget that not only covers your mortgage payments but also allows for savings, emergency funds, and everyday expenses. A carefully planned budget always helps you with a clear picture of your finances, allowing you to allocate your funds wisely.

Additional Payments

Consider making additional payments towards your mortgage principal whenever possible. Even small, regular extra payments can significantly reduce the interest amount over the loan term. This approach not only shortens your loan duration but also saves you substantial money in interest payments.

Biweekly Payments

Switching to biweekly payments (every two weeks) instead of monthly payments results in one extra payment annually. Over time, this additional payment significantly reduces the loan balance and helps you pay off your mortgage faster.


If interest rates drop significantly after you’ve taken your loan, consider refinancing. Refinancing at a lower rate can lead to lower monthly payments or, if you maintain the same payment amount, can shorten your loan duration substantially.

Review and Adjust

Periodically review your financial situation and mortgage terms. If your income increases, consider increasing your monthly payments to pay off your loan faster. 

Financial Counseling

If you face financial challenges, seek financial counseling promptly. Expert guidance can assist you in reorganizing your budget, handling debts, and overcoming obstacles, ensuring you remain on course with your mortgage payments.

Financial Counseling

Tax Implications

As a homeowner in Cambodia, it’s crucial to understand the tax implications tied to your property. Additionally, safeguarding your investment is paramount. Let’s explore both aspects, providing you with expert advice to ensure your financial future remains secure.

Tax Implications

Tax Implications of Homeownership in Cambodia

In Cambodia, homeowners are subject to several taxes and fees, including:

Property Tax: Property tax is typically a small percentage of the property’s value. Cambodia has a 0.1% property tax applied on immovable properties and property taxes must be paid every year.

Rental Income Tax:  When you decide to rent out your property, dealing with taxes becomes part of the package. The rates for these taxes can be a bit tricky – they vary. 

Transfer Tax: You and the buyer need to share and pay for the transfer tax when you are transferring the property title to him or her.

Value Added Tax (VAT): VAT applies to certain real estate transactions, like new properties. It’s crucial to understand if your transaction is VAT applicable and plan accordingly.


In conclusion, your home loan is more than a financial commitment, it’s a pathway to financial stability and future opportunities. You’re not only paying the loan but you’re also building a foundation for your future by adopting smart repayment strategies. Feel free to contact ADA Cambodia for further assistance if you are looking for a home loan. Here’s to wise financial decisions, fulfilling dreams, and a future filled with prosperity. Congratulations on this significant achievement, and welcome to the world of homeownership!

ADA Cambodia

Frequently Asked Questions (FAQs)

Can foreigners get a mortgage in Cambodia?

Yes, Cambodia allows mortgages for foreigners, with lenders like ADA Cambodia offering tailored solutions.

What is the limit on a home loan?

The home loan limit varies but often ranges from 70-80% of the property’s value, depending on factors like financial stability.

Is Cambodia a good place to invest in real estate?

Absolutely, Cambodia’s growing economy and real estate development make it an attractive investment destination, especially with accessible home loan options.

Want more knowledge about Loans? Check out our list of loan tips now!

About Sovannarith Chea

Sovannarith Chea, with over eight years in the loan business, is a trusted financial advisor in Cambodia. His expertise at ADA Cambodia has empowered many individuals to overcome financial hurdles. Sovannarith's personalized approach ensures that financial solutions are tailored to each client's unique circumstances, making dreams more attainable for the community he serves. Connect with Sovannarith at ADA Cambodia and take a step towards financial stability.

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