Thailand eases mortgage rules to support property market

The Central Bank of Thailand announced the easing of the rules mortgage lending to support the market Thailand real estate, which is struggling with the consequences of the coronavirus pandemic. The measures will affect all mortgage contracts, including refinancing.

The loan-to-value ratio (LTV) limit, which used to be 70-90 percent, has been increased to 100 percent by the end of 2022. Thus, the Central Bank plans to increase activity in the Thailand real estate market.

Expected that the easing of mortgage lending in Thailand, together with other additional measures, will lead to an increase in housing lending by about 1.5 billion dollars a year.

According to the senior director of the Central Bank of Thailand, Don Nakornthab, the real estate sector accounts for about 10 percent of the country's GDP. According to forecasts, GDP growth in 2021 will be 0.7 percent, in 2022 - 3.9. Recall that last year, Thailand's GDP fell by 6.1 percent. Thailand's economy is expected to return to pre-pandemic levels in early 2023, but it could take much longer for the real estate sector to recover.

“The economy has already bottomed out. But without additional measures it is expected