How will the LTV Measure be in 2023?

Who wants to get a loan to buy a second house should read this content. Starting on 1 January 2023, Bank of Thailand or BOT will bring back the LTV measure to supervise a mortgage loan and a mortgage-related loan again after unlocking it for 2 years. For those who have no idea what LTV Measure is, ACU PAY will show what the LTV Measure effects are and who the LTV Measure will affect.

What is LTV Measure?

LTV or Loan To Value Ratio is the ratio that a bank can provide the loan or the borrower needs to put down payment. For example, if you want to get a loan to buy the second house but there is a LTV Measure at 90%. The bank can provide a loan at 1,000,000 baht but the maximum that the borrower gets is 900,000 baht. The borrower must pay with cash as a down payment for the remaining 10% or 100,000 baht.

Terms and Conditions of the LTV Measure 2023.

People who want to buy house for less than 10 million baht

Those who need a loan to buy their first house: They can get a 100% of a bank loan without any down payment. Also have 10% more money for their house interior decoration.

Those who need a loan to buy their second house:They can get only 80%-90% of the bank loan depending on the terms and conditions of the bank. The borrower might pay with cash as a down payment for the 10%-20% remaining

Those who need a loan to buy their second house:They can get only 70% of the bank loan. The borrower might pay with cash as a down payment for the 30% remaining

People who want to buy house for more than 10 million baht

Those who need a loan to buy their first house:They can get only 90% of the bank loan. The borrower might pay with cash as a down payment for the 10% remaining.

Those who need a loan to buy their second house:They can get only 80% of the bank loan. The borrower might pay with cash as a down payment for the 20% remaining.

Those who need a loan to buy their second house:They can get only 70% of the bank loan. The borrower might pay with cash as a down payment for the 30% remaining.

The benefit of LTV Measure

Buyers can buy houses at reasonable prices as speculation in the real estate market has fallen, which is suitable for homebuyers.
Revise the investment risk assessment to reduce the risk of property prices falling sharply in the future, especially in the case of speculative buyers.