All in all, why is the LTV measure important for people to buy a house?

All in all, why is the LTV measure so important for people to buy a house? 🏠

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Many people should start seeing the news.

"National Bank temporarily relaxes LTV criteria."

More together.

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And the question is...

What is LTV?

So why is this measure important to people who are going to buy a house?

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Today I want to talk in a simple way.

Because LTV is actually one of the matters that directly affects our "ability to buy a house" at all.

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1.What is LTV?

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LTV stands for Loan to Value.

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Simply put,...

"The proportion of the loan to the price of the house."

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Let's say the house costs 3 million.

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If the bank loans 100%,

It means we recovered the full 3 million.

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But if the bank only loans 90%,

Which means we need a 10% down payment.

Or about 300,000 baht.

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So when we say "addicted to LTV,"

It really means...

We need more money to buy the house.

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2. What do LTV relaxation measures help? 📌

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Previously

Especially people who buy a 2nd or 3rd house.

Usually not fully salvaged

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Some cases require a 10-30% down.

Which is a pretty big sum.

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But most recently, National Bank has "temporarily relaxed the LTV threshold."

For contracts made since

1 May 2025 - 30 June 2026

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By some cases, up to 100% can be recovered.

Even the second or third house.

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Simply put,...

It reduces the initial lump sum burden of home buyers.

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Especially people who

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✅ Want to have the first house, but the savings are not much

✅ want to expand the house.

✅ want to buy more houses but don't want liquidity too tight.

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Because in fact,

"Down payment."

It's one of the hardest walls of buying a house, sir.

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3. Give an example to visualize

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Suppose we buy a house for 5 million baht.

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If the original threshold required a 90% loan,

Which means we need a down payment of 500,000 baht.

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And it also does not include transfer date costs.

Decoration fee

Furniture charge

Or another emergency reserve

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But if the LTV measure saves 100% of the loan,

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That $500,000.

May be used as

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✅ Emergency reserve

✅ Home Decor

✅. Buy furniture.

✅. Maintain the liquidity of life.

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This is very important.

Because many people "recover through."

But after buying a house and getting tired of money,

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4. What will happen after June 2026? 👀

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Now the measures relax LTV.

It will end in June 2026.

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But many parties also see

There is a chance that the National Bank may consider renewing the measure.

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The main reason is

The real estate sector is also one of the key engines of the Thai economy.

And the past

Consumer purchasing power has also not fully recovered.

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So relax the LTV.

It is therefore considered one of the tools that reasonably stimulates the property market.

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But will the last continue?

We'll have to wait for the official announcement again.

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5. But I want to think of another angle

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Even LTV allows for "more recovery."

But that doesn't mean...

We should always recover fully.

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Because the house isn't just about "salvaging through."

But it's a long-term burden, 20-30 years.

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Many people have full recovery time.

May feel that more money is left in hand

Then use it all

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Finally, when actually starting to relax

Back without reserves

No emergency money.

Or can't bear the financial shocks.

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So in my corner,

Even the LTV measures are a good thing.

But to "put down some money."

And good financial planning.

Still very important

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Because of a good house.

Not the most fully salvaged house.

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But the house we already live in...

There is still a good financial quality of life.

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* Recovery sparingly and repayable

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WIN.ITTISAK

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# guruliving # Finance # Buy a house # LTV