Bank of Thailand extends LTV relief: what it means for Phuket buyers

The Bank of Thailand has extended its temporary LTV easing for one more year, until 30 June 2027. For Phuket’s property market, this is a practical signal for anyone planning to buy a condo, villa, or investment property with mortgage financing. The measure applies to housing loans and related housing-linked loans, and it is meant to support the recovery of the real estate sector as demand remains weak. ([]( simple terms, LTV is the ratio between the loan amount and the collateral value. The higher the permitted LTV, the less cash a buyer needs upfront. Under the Bank of Thailand’s decision, the temporary easing now applies to loan contracts made from 1 July 2026 to 30 June 2027. For properties below THB 10 million, 100% financing is available from the second loan onward; for properties priced at THB 10 million and above, it is available from the first loan. ([]( this matters in Phuket

Many transactions on the island depend on a mix of personal funds and bank financing. That includes both local buyers and foreigners purchasing condominiums under the current rules. Extending LTV easing gives more buyers room to proceed and gives developers a better chance of closing sales without added pricing pressure. ([]( is especially sensitive in the condominium and resort-housing segment. If mortgage conditions stay more flexible, it supports demand in projects where buyers look not only at price, but also at down payment, furnishing costs, and future ownership expenses. In this market, even a small policy change can affect how quickly a buyer decides. ([]( changed for buyers

First, if you planned a purchase in 2026 and were counting on mortgage financing, the window has not closed. The market now has an additional year under more flexible rules. Second, this does not mean banks will lend equally easily to everyone. The Bank of Thailand noted that financial institutions remain cautious and that systemic risk is still limited. ([]( the easing does not remove the need to prove affordability. Buyers still need to prepare documents, income evidence, and a realistic view of the down payment required in their specific case. This is especially important for repeat buyers and investors who want to keep their leverage under control. ([]( investors should read it

For investors, the main message is that demand may remain firmer than expected. The effect will not be the same across all segments. It will be strongest in projects with clear entry pricing, good locations, and proven rental demand. It will be weakest in overpriced assets with limited liquidity. The LTV extension does not fix a poor product; it only improves the transaction environment. ([]( Phuket, this may mean more attention on completed condominiums, resort projects, and assets suitable for both personal use and rental income. If you compare several options, it becomes even more important to calculate not only the price per square metre, but also the actual equity needed, monthly carrying costs, and the margin for rental performance. ([]( to do now

• Check whether your target property fits the banking conditions effective from 1 July 2026 to 30 June 2027. ([]( offers from several banks rather than relying on one indicative quote. ([]( conservatively: down payment, fees, furnishing, repairs, and vacancy reserve. ([]( buying for investment, assess not only yield but also exit liquidity. ([]( bottom line is straightforward: the market did not receive a symbolic gesture, but a real extension of a tool that helps some buyers enter deals on more comfortable terms. For Phuket, that is useful because the island still needs stable demand not only from tourists, but also from long-term property buyers. ([](