Thursday, 2 December, 2021
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Thai central bank eases mortgage rules to support property sector

Thai central bank eases mortgage rules to support property sector

Popular News

BANGKOK: Thailand’s central bank has further eased rules on mortgages to boost a key property sector struggling from the impacts of the pandemic, officials said on Thursday, sending property shares higher.

The loan-to-value ratio limit has been lifted to 100per cent from 70-90per cent until end-2022 to increase activity in the real estate sector, which will take years to recover, officials said. The rules were effective on Wednesday, report agencies.

“Uncertainty remains high and some sectors are still fragile, so measures have been introduced to stimulate the economy and increase jobs,” Roong Mallikamas, an assistant Bank of Thailand (BOT) governor, told a news conference.

The measures will be for all housing loan contracts, including refinancing, while there is little sign of speculation in the sector, she said.

Shares in real estate developers rose 1.2per cent at the lunch break, with Origin Property up 6.5per cent and Noble Development up 3per cent.