BOT eases loan to value ratio for homebuyers

The BOT today (January 20) announced new rules on loan to value ratio (LTV), under which, in addition to first-time homebuyers being able to apply for a loan equivalent to 100 per cent of the property's value, banks are allowed to offer 10 per cent more for expenses on furniture and interior decor.

Those buying a second home are required to place a 10 per cent down payment if they have serviced the first home loan for two years or more. Previously, they needed to service debt under the first mortgage contract for at least three years. However, a 20-per cent down payment is required if they have serviced the first contract for less than two years.These apply to properties valued at less than Bt10 million.

  For homes worth more than Bt10 million each, buyers need to settle a 10 per cent down payment for the first contract, down from 20 per cent. This measure aims to serve those seeking a  different lifestyle.
  The central bank has also relaxed mortgage loan reserves for banks to reduce their financial cost and boost their liquidity.