Economics
Thailand to Impose Mortgage Curbs to Tackle Speculation
- Bank of Thailand announces limits for loan-to-value ratios
- Practices like loans exceeding property price seen as risky
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Thailand’s central bank will tighten mortgage lending rules to curb property speculation after growing concerned about risks stemming from a prolonged period of near record-low interest rates.
The Bank of Thailand imposed an 80 percent loan-to-value limit on mortgages for homes worth more than 10 million baht ($306,260), effective Jan. 1, 2019 for new lending, it said in a statement Thursday. The same restriction applies to purchases of second homes. Banks will also be prohibited from providing advances that exceed the value of a property.