The Bank of Thailand (BOT) has announced a temporary relaxation of its Loan-to-Value (LTV) regulations for housing loans. This decision, revealed in an official document dated 20th March 2025, aims to support the slowing real estate sector, which has shown no signs of recovery.
The revised rules allow for a 100% LTV ratio for mortgages under specific conditions, including second and subsequent homes below 10 million baht, and all properties over 10 million baht for the first home.
This temporary measure will be in effect for loan agreements made between 1st May 2025 and 30th June 2026.
While acknowledging that Thailand’s existing LTV rules are already relatively lenient internationally, the BOT considers this temporary easing a way to alleviate the high supply overhang and cautiously stimulate the broader economy without significantly threatening financial stability.
