Borrow more than 100% or borrow the least amount when purchasing real estate.
Last updated: 6 Aug 2025
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When planning to buy a house or own a condo, we often have to make decisions, from choosing the location, project, bank, and loan amount. Today, we're inviting everyone to join us in a discussion about home loan amounts. Weigh your financial plans between borrowing more than 100% or borrowing the least amount to find the best fit for your financial and real estate plans.
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Borrowing more than 100%
is a new and very popular home loan option. LTV measures are available to support those looking to buy their first home or a condo for the future. Before we look at the advantages and caveats of 100% home loans, let's take a look at the 2023 LTV measures to understand them.
Updated table: LTV or Loan to Value Ratio measures
This is the ratio that banks can grant loans based on the price of the home. This will also stipulate the minimum down payment required for home loan applicants.
Price not exceeding 10 million baht
- Home Loan, Contract 1 (first home)
You can borrow the full value of the collateral (100%), with an additional 10% available for furniture, home decorations, or other necessary items for moving into the home.
- Home Loan, Contract 2
You can borrow 90% if you have been paying off the first contract for 2 years or more, or 80% if you have been paying off the first contract for less than 2 years.
- Home Loan, Contract 3 and above
You can borrow 70%.
More information: https://www.bot.or.th/Thai/ConsumerInfo/Topics/Pages/LTV.asp
The conclusion of the LTV measure is that those eligible for a 100% loan + 10% decoration fee home loan must purchase a house or condo priced no more than 10 million baht and be the first contract only. The loan amount determination is also at the discretion of the lending bank.
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The advantages of borrowing 100% + 10% are:
- A lump sum left over for decorating: This can be used to purchase furniture and other essential items for your home.
- A lump sum payment: This can be used to pay off personal debt or reduce financial burdens.
- Lower interest rates than personal loans: Compared to personal loans or other types of loans, home and condo loans have lower interest rates.
___________________________________________
And the caveats of borrowing 100% + 10% are:
- Long-term debt repayment: Although the amount borrowed above 100% can be used to reduce short-term financial burdens, it increases the monthly repayment burden for long-term debt. Therefore, borrowing the remaining amount must also take into account your ability to repay the debt over the long term.
- High financial discipline: Referring to the first point, borrowing long-term debt without proper planning and reserve funds can lead to a loss of income if uncontrollable circumstances arise, which can damage your credit due to a lack of liquidity and the inability to repay your debts as usual.
- Higher loan amount, higher interest rate: Remember that interest is calculated based on the loan amount, or simply the principal. If we have a large amount of remaining balance on our home loan, the interest will also be calculated. This is an alternative for home or condo loans for those with a lump sum of reserve funds. This money must not be needed for daily expenses, allowing them to make a large down payment, reducing their loan application costs.
___________________________________________
The advantages of a large down payment:
- Lower interest: We're talking about the amount of interest charged based on the loan interest rate. When we make a large down payment, the amount required for the loan will decrease, resulting in a corresponding decrease in interest.
- Shorter repayment period: Since the loan amount is small, we can shorten the repayment period, not necessarily 30-40 years.
- Large down payment, higher chance of approval: This is another way to boost the confidence of the issuing bank, which may also make loan approval easier.
___________________________________________
And cautions about large down payments:
- Reduced reserve funds or investments: When using a large reserve fund as a down payment for a home or condo, consider future emergencies or assess the potential benefits of investing the funds to generate higher returns.
- Reduced tax deduction rates: For individuals who file annual taxes This may have a slight impact on the tax deduction rate, as the annual calculation is based on actual interest paid.
___________________________________________
- Loans exceeding 100% are suitable for young working adults who want to purchase a home or condo for living and need extra money for decorating. It's important to have long-term financial planning in place.
- Low loan with a high down payment is suitable for those with significant savings, purchasing for residential or rental purposes, or those aged 30 and over who want to repay over a shorter period.
___________________________________________
Thank you for the great information from ANANDA.
___________________________________________
Borrowing more than 100%
is a new and very popular home loan option. LTV measures are available to support those looking to buy their first home or a condo for the future. Before we look at the advantages and caveats of 100% home loans, let's take a look at the 2023 LTV measures to understand them.
Updated table: LTV or Loan to Value Ratio measures
This is the ratio that banks can grant loans based on the price of the home. This will also stipulate the minimum down payment required for home loan applicants.
Price not exceeding 10 million baht
- Home Loan, Contract 1 (first home)
You can borrow the full value of the collateral (100%), with an additional 10% available for furniture, home decorations, or other necessary items for moving into the home.
- Home Loan, Contract 2
You can borrow 90% if you have been paying off the first contract for 2 years or more, or 80% if you have been paying off the first contract for less than 2 years.
- Home Loan, Contract 3 and above
You can borrow 70%.
More information: https://www.bot.or.th/Thai/ConsumerInfo/Topics/Pages/LTV.asp
The conclusion of the LTV measure is that those eligible for a 100% loan + 10% decoration fee home loan must purchase a house or condo priced no more than 10 million baht and be the first contract only. The loan amount determination is also at the discretion of the lending bank.
___________________________________________
The advantages of borrowing 100% + 10% are:
- A lump sum left over for decorating: This can be used to purchase furniture and other essential items for your home.
- A lump sum payment: This can be used to pay off personal debt or reduce financial burdens.
- Lower interest rates than personal loans: Compared to personal loans or other types of loans, home and condo loans have lower interest rates.
___________________________________________
And the caveats of borrowing 100% + 10% are:
- Long-term debt repayment: Although the amount borrowed above 100% can be used to reduce short-term financial burdens, it increases the monthly repayment burden for long-term debt. Therefore, borrowing the remaining amount must also take into account your ability to repay the debt over the long term.
- High financial discipline: Referring to the first point, borrowing long-term debt without proper planning and reserve funds can lead to a loss of income if uncontrollable circumstances arise, which can damage your credit due to a lack of liquidity and the inability to repay your debts as usual.
- Higher loan amount, higher interest rate: Remember that interest is calculated based on the loan amount, or simply the principal. If we have a large amount of remaining balance on our home loan, the interest will also be calculated. This is an alternative for home or condo loans for those with a lump sum of reserve funds. This money must not be needed for daily expenses, allowing them to make a large down payment, reducing their loan application costs.
___________________________________________
The advantages of a large down payment:
- Lower interest: We're talking about the amount of interest charged based on the loan interest rate. When we make a large down payment, the amount required for the loan will decrease, resulting in a corresponding decrease in interest.
- Shorter repayment period: Since the loan amount is small, we can shorten the repayment period, not necessarily 30-40 years.
- Large down payment, higher chance of approval: This is another way to boost the confidence of the issuing bank, which may also make loan approval easier.
___________________________________________
And cautions about large down payments:
- Reduced reserve funds or investments: When using a large reserve fund as a down payment for a home or condo, consider future emergencies or assess the potential benefits of investing the funds to generate higher returns.
- Reduced tax deduction rates: For individuals who file annual taxes This may have a slight impact on the tax deduction rate, as the annual calculation is based on actual interest paid.
___________________________________________
- Loans exceeding 100% are suitable for young working adults who want to purchase a home or condo for living and need extra money for decorating. It's important to have long-term financial planning in place.
- Low loan with a high down payment is suitable for those with significant savings, purchasing for residential or rental purposes, or those aged 30 and over who want to repay over a shorter period.
___________________________________________
Thank you for the great information from ANANDA.
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