Countdown to mortgage requirements

On Nov 9, 2018, the Bank of Thailand announced new requirements on down payment rates for mortgages that will take effect on April 1, 2019.

Homebuyers who purchase a residential unit priced lower than 10 million baht and seek a second or subsequent home loan will be required to make a down payment of at least 10% if they have paid for the first mortgage for three years or longer.

The minimum down payment requirement will be raised to 20% if borrowers have serviced the first mortgage for less than three years.

For those seeking a first or second mortgage for a home priced at 10 million baht or higher, a minimum 20% down payment is required.

Those who apply for third and subsequent mortgages will be subject to a minimum 30% down payment, regardless of home price.

The loan-to-value (LTV) ratio of 90-100% remains unchanged for those who apply for a first mortgage to buy a home priced below 10 million baht, but the ratio will be lowered to 80% when a borrower buys a residence valued at 10 million baht or higher.

The new requirements will not be applied to those who signed sales or purchase agreements or made down payments before Oct 15, 2018, nor for refinancing of sole mortgages, nor housing loans for building homes on owned land that is free of debt.