BANGKOK (NNT) – The Bank of Thailand (BOT) has announced its decision to ease mortgage lending rules to help first-hand and used home buyers seek loans. The decision came into effect on Jan 20.
The loan-to-value (LTV) ratio of 100% remains unchanged for buyers of homes worth less than 10 million baht, but they can borrow an extra 10% of the collateral value. For buyers of homes valued at more than 10 million baht, they can now make a down-payment of at least 10%, down from the previous 20%.
Buyers of second houses worth less than 10 million baht can make a down-payment of 10%, if the mortgage on the first home has been paid off for at least two years. The previous requirement was three years. The BOT has adjusted its funding regulations to help people who want to seek more loans to buy houses priced below 10 million baht and those who wish to borrow to build houses on legal land.
The President of the Government Housing (GH) Bank, Chatchai Sirilai, said today his bank is ready to comply with the BOT’s new regulations to help people who want to own their own home, especially low and middle-income owners as well as civil servants. The new regulations will benefit buyers of homes worth less than 10 million baht, and they can borrow an extra 10% of collateral value for the purchase of furniture. Previously, a buyer of a house worth 1 million baht could borrow no more than 900,000 baht. Under the new regulations, the lending ceiling is raised to 1.1 million baht
