BOT imposes tough measures on the second and third-house mortgages
The Bank of Thailand has announced new measures to regulate mortgage lending, by requiring buyers to place a higher down payment for multi-mortgage borrowings.
In a press release issued on Friday, the central bank said that from April 1, next year, it will require homebuyers for a third house to place a 30 per cent down payment, regardless of the house price.
The first down payment is unchanged from the current 10 per cent.
For the second mortgage, the down payment is 10 per cent if the first mortgage exceeds three years, or the house price is below Bt10 million. The down payment will increase to 20 per cent if the first mortgage is less than three years or house price is more than Bt10 million.
The central bank said it would closely monitor the real estate market as the property bubble often triggers economic problems around the world.
