# LTV Relaxation Could Boost Slow Housing Market, Though Impact Likely Modest

- Link: https://www.thailand-business-news.com/banking/206092-ltv-easing-may-aid-sluggish-housing-market-but-limited-impact-expected-slower-contraction-likely-in-2025
- Published: 2025-04-03T08:41:00+07:00
- Author: Daniel Lorenzzo

**The Bank of Thailand has relaxed LTV regulations to support real estate, allowing
100% loans for homes under 10 million baht from the second loan, effective May 2025
to June 2026.**

## Bank of Thailand’s LTV Regulation Relaxation

The Bank of Thailand has announced a temporary easing of Loan-to-Value (LTV) regulations
to bolster the struggling real estate sector. The new guidelines allow for a maximum
LTV ratio of 100% for housing loans on properties valued under 10 million baht starting
from the second loan. For properties valued at 10 million baht or more, this applies
from the first loan. This measure is effective for agreements made between May 1,
2025, and June 30, 2026.

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## Impact on Housing Market

SCB EIC views this temporary LTV relaxation as a way to improve financial conditions
amid a sluggish housing market. While it may help stimulate short-term demand for
properties priced below 10 million baht, the overall impact on boosting housing 
sales is expected to be limited. The measure targets investors and those looking
to purchase second homes, focusing on buyers ready and financially capable of securing
loans.

## Further Government Initiatives Needed

The housing market recovery still faces challenges, particularly for middle- to 
lower-income buyers who are grappling with limited credit access. Proposed measures,
such as extending reduced transfer and mortgage registration fees for affordable
homes, could further support the market. Additionally, the government is encouraged
to explore initiatives like tax incentives for second-hand home purchases and increased
loan amounts for lower-income groups to facilitate better credit access as housing
prices rise.

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The Bank of Thailand aims to stimulate housing demand and provide greater financial
flexibility for buyers amidst economic uncertainties. By relaxing the Loan-to-Value(
LTV) regulations, the central bank seeks to encourage investment in the real estate
market, which has faced declining activity in recent years. Analysts predict this
move could lead to increased competition among lenders, potentially resulting in
more attractive loan packages for borrowers. However, critics caution that such 
measures must be carefully monitored to avoid overheating the property market or
encouraging excessive borrowing. As the implementation period approaches, stakeholders
in the housing sector are expected to adapt their strategies to align with the new
regulatory framework.

[Source link ](https://www.scbeic.com/en/detail/product/9748?rand=55232)