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Relaxing of LTV for homebuyers to help property market

The BOT on Thursday announced it would relax the LTV for homebuyers purchasing residences together and that borrowers or co-borrowers applying for a loan under the first home buyers rule and who do not own any other residence would be given a 90 per cent mortgage on a condominium and 95 per cent for a single detached house and townhouse. The co-borrower is defined as a borrower supporting the family in its bid to obtain a mortgage to buy a residence but who will not become the owner of that residence. “We believe that the relaxation of the LTV in relation to co-borrowers will see the property market improve by up to two per cent for the rest of this year. This market represents about 20 per cent of the total property market value, which is expected to be worth about Bt760 billion this year,” Issara Boonyoung, chief executive officer of Kanda Group, who also honor chairman of Business Housing Association, said in an interview with The Nation on Friday. He added that the relaxing of the rule will open the opportunity for co-borrowers to make a down payment of about 10 per cent for condominium and five per cent for single detached house and townhouse under the LTV first home concept.  The transfer of residences on hold this year has continued to drop and currently stands at seven per cent, which is better than the early estimates of 10 per cent. The LTV, which became effective on April 1, 2019, resulted in a drop in the property market in the second quarter of this year, as most homebuyers sped up the transfers of their residential projects and completed them in the first quarter. This had a direct impact on the financial results of property firms, with most announcing a... If you wish to read this full breaking news headline, plus more articles from around Thailand and Asia like, Relaxing of LTV for homebuyers to help property market, simply click on 'Read full story' below, but 1st please give us a 'LIKE' or 'SHARE' before you leave. Thank you Relaxing of LTV for homebuyers to help property market

 

 

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Published By: Samui Times - Sunday, 18 August

 

 

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