TITLE: Thailand's Bank of Thailand Temporarily Relaxes Residential Mortgage Lending Standards
BODY:
On July 1, 2569 (2026), the Bank of Thailand (BOT) issued Announcement No. 30/2569 temporarily relaxing loan-to-value (LTV) ratio requirements for residential mortgage lending and related credit facilities provided by financial institutions and specialized financial institutions. The announcement, published in the Royal Gazette on June 30, 2569, takes effect July 1, 2569.
The BOT introduced this measure to support Thailand's real estate sector and related industries during economic uncertainty. The real estate market has stalled with high inventory levels, while geopolitical risks and elevated energy costs pressure both consumer purchasing power and construction costs. The relaxation aims to assist borrowers with purchasing capacity and repayment ability who have delayed housing purchases. The BOT set LTV ratio ceilings at 100 percent for residential mortgages across two scenarios: properties with collateral value below 10 million baht (from the second mortgage onwards), and properties with collateral value of 10 million baht or more (from the first mortgage onwards). The measure applies to loan agreements executed between July 1, 2569 and June 30, 2570.
The announcement applies to all financial institutions under the Financial Institution Business Act, including the Government Savings Bank, Bank for Agriculture and Agricultural Cooperatives, Government Housing Bank, Small and Medium Enterprise Development Bank of Thailand, Export-Import Bank of Thailand, and the Small Industry Credit Guarantee Corporation. The BOT emphasizes that financial institutions must maintain rigorous credit assessment standards, conduct thorough collateral valuations, avoid excessive household debt accumulation, and prevent real estate speculation to sustain financial system stability. The relaxation remains temporary and subject to review based on market conditions.