Bank of Thailand Extends LTV Relaxation for Another Year Starting July, Green-Lights 100% Home Loans on All Contracts

The Bank of Thailand (BoT) has announced it is extending the relaxation of LTV (Loan-to-Value) lending standards for an additional year, effective from July 1, 2026 through June 30, 2027, allowing homebuyers to secure mortgage loans at 100% of the property's appraised value across all contract types and price ranges to stimulate the real estate sector.

The BoT revealed on May 8, 2026 that it is preparing to announce the temporary extension of lending guidelines for residential mortgages and related credit (LTV standards) for one more year, expanding the timeline from July 1, 2026 to June 30, 2027. This measure aims to support the real estate sector and stimulate employment across related supply chains.

The BoT observes that the real estate market continues to experience slowdown with high inventory levels. Additionally, the sector faces mounting pressure from geopolitical risks, particularly the Middle East conflicts, which impact construction costs, buyer demand, and confidence among both households and businesses—potentially causing severe contraction and slow recovery in the real estate sector.

Key Details of the LTV Relaxation: The new standards will apply to loan contracts executed from July 1, 2026 to June 30, 2027 with the following provisions:

- The LTV ceiling is set at 100% for all cases, whether for residential properties valued below 10 million baht or 10 million baht and above, covering first, second, and subsequent mortgages - For residential construction on unencumbered land owned by the borrower, the 100% LTV ceiling also applies - For first mortgages with collateral value below 10 million baht, additional related credit may be extended up to 10% of the collateral value - The directive applies to all financial institutions including commercial banks, finance companies, and specialized financial institutions (SFIs) such as Government Savings Bank, Bank for Agriculture and Agricultural Cooperatives (BAAC), Government Housing Bank (GHB), SME Bank, EXIM Bank, and the Small Industry Credit Guarantee Corporation

The BoT expects financial institutions to maintain sound credit underwriting standards aligned with responsible lending principles, exercising prudence without encouraging excessive household debt or speculative activity in the real estate market.

The BoT is confident that this relaxation will not significantly increase systemic financial risk, as financial institutions remain cautious in lending amid tight financial conditions, and there are currently no unusual signs of speculative behavior.