The last curve with relaxation measures, LTV, home loan 100 % without down payment.

LTV or Loan to value measures are measures issued by the Bank of Thailand to reduce the risk of bad debt from buying housing. by limiting the credit limit not to exceed the criteria set by the Bank of Thailand According to the original criteria that came out, the details are as follows.

for housing prices not exceeding 10 million baht

– If it is a loan to buy after the first time A maximum credit limit of 100% of the appraised value + a maximum credit limit of 10% can be obtained.

– If it is a second loan Able to apply for a loan up to a maximum of 90% of the appraised value. If the first contract has been paid for not less than 2 years, or if the first contract has been paid for not more than 2 years, you will be able to request a loan up to 80% of the appraised value.

– If it is a loan to buy the 3rd house onwards, you can request a loan up to a maximum of 70% of the appraised value. Regardless of how many years the 1st and 2nd installments have been made

For housing with a price higher than 10 million baht or more

– If it is a loan to buy after the first time Able to apply for a loan up to a maximum of 90% of the appraised value.

– If it is a second loan Able to apply for a loan up to a maximum of 80% of the appraised value.

– If it is a loan to buy the 3rd house onwards, you can request a loan up to a maximum of 70% of the appraised value.

* However, the number of homes that will be counted as the 1st, 2nd, or 3rd home will be counted from the housing that has applied for a bank loan only. Mortgage-free housing is not included.

Examples of calculating credit limits with LTV measures controlling such as

Mr. A wants to buy a house at a price of 6 million baht. At present, he already has a mortgage payment for 1 house for a period of 3 years. Therefore, if Mr. A wants to borrow to buy this house The bank will have the power to grant a maximum credit limit of not more than 90% of 6 million baht, or a maximum credit limit of not more than 5.4 million baht.

It can be seen that if customers want to buy a house from the second house onwards or want to buy a house worth more than 10 million baht or more. It is necessary to prepare cash at least 10% of the house price in order to be able to buy the house that you want.

For this reason, it results when this measure comes into force. causing a slowdown in the overall real estate market Because the buyer needs to consider whether to use this money for a down payment on the house or whether to keep it for other uses. When this happens, it affects the overall economy of the real estate sector as well.

Therefore, the Bank of Thailand has issued measures to relax the LTV criteria to promote liquidity in the real estate market in Thailand. with the following relief measures

1. For assets with a price not exceeding 10 million baht and being the first purchase loan can apply for a loan up to a maximum of 100% of the appraised value And able to request for a top up loan for decoration not more than 10% of the appraised price as well

2. For properties that do not meet the criteria in item 1, a loan can be obtained without exceeding 100% of the property's appraised value.

And when this relief measure comes out As a result, those who want to have their own house / condo do not have to worry about the down payment that must be prepared in order to buy property. and able to plan their spending more conveniently

But this measure did not last long. The bad news is This respite measure is about to expire by December 31, 2022 as well. And there is no official announcement from the relevant agencies. whether there will be an extension of the relaxation period of this measure or not

So now for anyone who is planning to buy a house. Or buy your own home May have to make a decision to think for a bit that after this time of opportunity We will still have enough strength to find cash to put down. To be able to occupy our dream home or not?