BANGKOK, Oct 4 (Reuters) - Thailand’s central bank will tighten mortgage requirements for residential property to curb risks and speculation in the housing market, an assistant governor said on Thursday.
The loan-to-value ratio (LTV), the percentage of a property’s value that can be given as a loans, for housing units worth more than 10 million baht ($306,466) will be set at 80 percent, with a downpayment of at least 20 percent, assistant governor Wajeetip Pongpech told a briefing.
The rule, expected to be effective in January 2019, will also apply to a second or more homes, regardless of their price, she said.
The move comes amid elevated household debt and rising bad mortgage loans. Intensifying competition among banks for mortgage business has led to looser lending for property purchases. ($1 = 32.63 baht) (Reporting by Kitiphong Thaichareon Writing by Orathai Sriring Editing by Kim Coghill)