Bank of Thailand Extends LTV Relaxation for Another Year Through June 30, 2027 to Support Real Estate Recovery

The Bank of Thailand has extended its Loan-to-Value (LTV) ratio relaxation for housing loans by one additional year, now ending on June 30, 2027. The measure enables 100% financing for second homes priced up to 10 million baht and homes exceeding 10 million baht from the first loan contract, intended to maintain consumer confidence and support the real estate sector's recovery.

On May 14, 2025, Bank of Thailand Governor Sethaput Suthilertvorakul announced that the Financial Institution Policy Committee (FIPC) approved the extension of the LTV relaxation period for housing credit and related loans. The timeline has been extended by one year from the original expiration date of June 30, 2025 to June 30, 2027, with the following details:

1. The LTV ratio ceiling is set at 100% for housing loans in both cases: (1) properties valued below 10 million baht starting from the second loan contract onwards, and (2) properties valued at 10 million baht or more starting from the first loan contract.

2. This relaxation is temporary for loan contracts executed between July 1, 2025 and June 30, 2027.

The Bank of Thailand's extension of the LTV relaxation aims to sustain confidence and support the real estate sector's recovery. Housing demand has remained weak due to economic slowdown and has been further impacted by geopolitical tensions in the Middle East, which have affected business costs and household purchasing power.

The committee assessed that the LTV extension would have limited impact on financial system stability, as financial institutions remain cautious in credit extension and there have been no unusual speculative signals observed to date.