Mortgage rejection rates expected to remain high

Housing sector looks to relaxed LTV limits

- KANANA KATHARANGSIPORN

Mortgage rejection rates are anticipated to remain elevated due to persistent global economic headwinds, though relaxed loan-to-value (LTV) limits and lower fees may help support a recovery in the housing market, according to banks and developers.

Sumthorn Sathiraporn, president of the Housing Business Association, said relaxed LTV limits could help stimulate demand.

After the government's relief announcement, bookings at the House & Condo Expo last month doubled to 12 billion baht up from 6 billion in November 2024.

"The reduction in transfer and mortgage fees is anticipated to lift demand for units priced 7 million baht or lower," he said. "However, mortgage rejection remains an issue to watch."

He said homebuyers faced an average mortgage rejection rate of 40% in the fourth quarter of 2024. This figure rose to 45% in the first quarter of 2025.