Bank of Thailand Extends Mortgage Market Support Measures Until June 2027
The Bank of Thailand has announced an extension of temporary measures to ease mortgage lending requirements until June 30, 2027. The decision was made against the backdrop of a slow recovery in the residential real estate market after the pandemic and is aimed at supporting both first-time buyers and investors. For the condominium market in Jomtien and Pratumnak, this means maintaining access to financing on more flexible terms for at least another two years.
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The regulator maintains the increased loan-to-value (LTV) ratio limit at 100% for first homes valued up to 10 million baht. For second and subsequent purchases, the limit remains at 90% for properties priced up to 10 million baht and 80% for more expensive properties. Before the relaxation measures were introduced in 2020, the standard LTV for a second home was 80% and 70% respectively.
How Current Mortgage Limits Work for Condo Purchases
The Bank of Thailand's program divides borrowers into three categories. First-time buyers receive maximum benefits: for condos valued up to 10 million baht, the bank can finance the entire amount without a down payment. This is particularly relevant for studios and one-bedroom apartments in Jomtien with an area of 28-35 m², priced between 2.8 to 4.5 million baht in new projects.
For a second property, the scheme changes. For properties priced up to 10 million baht, the bank will lend up to 90% of the value-the buyer will need to contribute at least 10% of their own funds. If the condo costs more, the maximum loan will be 80%. Third and subsequent purchases are financed under the same conditions as the second.
Important nuance: the limits apply to the cumulative value of all properties owned by the borrower, not to each transaction separately. If you already own a condo worth 8 million baht with an existing mortgage, purchasing a second property for 5 million will fall under stricter conditions, as the total amount will exceed 10 million.
Why the Bank of Thailand Decided to Extend the Measures
Official regulator statistics show uneven recovery in the housing market. According to Bank of Thailand data for the fourth quarter of 2024, the volume of new mortgage loans increased by 4.2% compared to the same period in 2023, but remains 18% below the pre-pandemic level of 2019. The condominium segment shows even slower dynamics: the number of registered transactions in Pattaya in 2024 was 3,847 units versus 4,120 in 2019.
The regulator also takes into account the macroeconomic situation. The Bank of Thailand's refinancing rate has been held at 2.50% since mid-2023, which is higher than the pandemic period minimum (0.50% in 2020-2021), but is still considered stimulative. The average mortgage interest rate for foreigners in Thai banks is currently 5.5-6.5% per annum, for residents-4.8-5.8%.
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Who Can Get a Mortgage to Buy a Condo in Thailand in 2026
Thai banks issue mortgage loans to foreigners, but conditions are stricter than for citizens. Basic requirements include age from 21 to 65 years at the time of loan repayment, official income confirmed by statements for the last 6-12 months, and a minimum down payment of 30-40% for non-residents. Even with the current Bank of Thailand relaxations, the 100% LTV limit applies only to Thai citizens and permanent residence holders.
Bangkok Bank, Kasikornbank and Siam Commercial Bank work with foreign borrowers, but each bank sets its own criteria. Bangkok Bank requires a minimum annual income of 1.2 million baht (about 35,000 US dollars) and considers applications only for completed properties with registered ownership. Kasikornbank can finance purchases at the construction stage, but the down payment will be at least 40%.
Russian buyers often face additional difficulties due to sanctions and restrictions on international transfers. Since 2022, Thai banks have tightened verification of sources of funds for Russian citizens and require detailed documentary confirmation of the origin of money. The application review process can take up to 8-12 weeks instead of the standard 4-6.
Alternative Financing Schemes for Buyers from Russia
When bank mortgage is not available, many buyers use installment plans from developers. In Jomtien and Pratumnak, major developers offer payment plans for 24-36 months with a first payment of 20-30%. Interest is either absent or included in the final price per square meter.
Example: the Riviera Wongamat Beach project offers 28 m² studios priced from 3.2 million baht. The payment scheme is 30% upon booking, 40% in equal installments during construction (18 months), the remaining 30% upon key handover. In fact, the buyer receives an interest-free installment plan for a year and a half, which is comparable to the benefit of a 6% annual mortgage with early repayment.
Another option is a loan from a Russian bank secured by existing real estate in Russia. Rates on such loans in 2026 start from 18-22% per annum, which is significantly higher than Thai mortgages, but the registration process takes 2-3 weeks and does not require proof of income abroad. Some buyers combine schemes: take a loan in Russia for the down payment and an installment plan from the developer for the rest.
Condo Price Dynamics in Jomtien and Pratumnak in 2024-2026
The southern Pattaya market shows moderate growth after the stagnation of 2021-2022. According to DDproperty agency, the average price per square meter in new Jomtien projects in the fourth quarter of 2024 was 89,500 baht, which is 3.8% higher than a year ago. In Pratumnak, dynamics are more active: 127,300 baht per m² (+5.2% year on year) thanks to the launch of several premium projects with sea views.
The secondary market behaves differently. Prices for resale condos in Jomtien decreased by 1.2% over the year and currently average 72,400 baht/m². Owners of apartments bought in 2018-2019 at the market peak are forced to sell at a discount of 10-15% from the original cost. The highest demand in the secondary market is for studios and one-bedroom apartments up to 35 m² in projects no older than five years and within walking distance of the beach.
Pratumnak maintains its premium district status. Here there is virtually no supply cheaper than 100,000 baht/m² in new buildings, and projects on the first line start from 180,000 baht/m². A typical two-bedroom apartment of 55-65 m² with sea view will cost 11-14 million baht. Installment plans are available in 70% of new projects, but conditions are less generous than in Jomtien: first payment from 35%, term up to 24 months.
Taxes and Hidden Costs When Buying a Condo with a Mortgage
A condominium buyer in Thailand pays three mandatory fees when registering a transaction at the Land Office. The transfer fee is 2% of the assessed value of the property or the transaction price (whichever is greater). Stamp duty is 0.5%. Withholding tax depends on the period of ownership and is calculated on a progressive scale, but when buying a new building directly from the developer, it is usually paid by the seller.
When arranging a mortgage, bank commissions are added. Application fee is 5,000-10,000 baht, non-refundable in case of rejection. Loan processing commission is 1% of the loan amount. Mandatory life and property insurance will cost 0.3-0.5% of the loan amount annually. Property appraisal by a bank appraiser costs 3,000-8,000 baht depending on area and location.
Annual expenses after purchase include land and building tax (0.02-0.1% of cadastral value for residential property), utilities (water supply, electricity) and contributions to the condominium management fund (common area fee). The latter varies from 35 to 80 baht/m² per month. For a 30 m² studio in Jomtien, annual maintenance costs will be 15,000-25,000 baht plus actual electricity and water consumption.
What This Means for a Buyer from Russia in 2026
The extension of mortgage relaxations until mid-2027 stabilizes the market and reduces the risk of a sharp price drop. For Russian investors considering buying a condo in Jomtien or Pratumnak, this is a signal: the market will remain liquid, demand from Thai buyers will continue, and therefore resale in 3-5 years will not cause difficulties.
Since obtaining a mortgage in a Thai bank is problematic for Russians, the focus shifts to projects with favorable installment plans. Look for offers with a first payment of up to 25% and a payment term of at least 24 months-this gives time for accumulation or refinancing. Check the developer's reputation: companies with a history of more than 10 years and a portfolio of at least five completed projects are less likely to miss delivery deadlines.
An alternative strategy is buying in the secondary market for cash with a discount. Owners who bought apartments in 2018-2019 are often willing to give 10-12% off the market price for a quick deal. A 28 m² studio in Jomtien that costs 3.5 million baht in a new building can cost 2.8-3.0 million in the secondary market with renovation and furniture. The savings offset the lack of installment plans if you have the full amount.
Forecast for the Condominium Market in Pattaya Until 2027
Analysts agree that the southern Pattaya market will continue moderate growth. Agency CBRE Thailand in its first quarter 2025 report forecasts an increase in the average price in Jomtien by 4-6% annually until the end of 2027. Pratumnak will show higher dynamics-6-8% per year-due to limited land supply for development and growing demand for premium housing with sea views.
The main demand driver is the return of tourists and long-term tenants from Russia, China and Europe. According to the Thai Ministry of Tourism, in 2024 the country was visited by 36.2 million foreigners, which is 91% of the 2019 level. Russian flow recovered to 1.48 million people (+22% compared to 2023), and a significant part comes to Pattaya for the winter, creating rental demand.
Risks include a possible increase in the refinancing rate by the Bank of Thailand if inflation exceeds the target corridor of 1-3%. Every 0.25 percentage points make mortgages more expensive and reduce purchasing power. Geopolitical instability and ruble exchange rate fluctuations also affect the Russian segment: when the ruble weakens below 0.35 baht per ruble, the number of transactions involving Russians decreases by 15-20%.
Practical Steps for Buying a Condo in Jomtien in 2026
Start with budget analysis and goal definition. Buying for personal residence requires a different approach than investment for rental. For wintering, choose areas 5-10 minutes walk from the beach, with developed infrastructure and a Russian-speaking community. For investments, priority is projects in tourist areas with high traffic and rental yields of 6-8% per annum.
Study at least five projects before making a decision. Visit showrooms, check the developer's reputation through independent sources, read reviews from owners in thematic groups. Pay attention to the quality of common areas: pool, fitness, lobby. Projects with well-maintained infrastructure are easier to rent and sell.
When executing a transaction, hire an independent lawyer to verify documents. The service cost is 15,000-25,000 baht, but this will protect against hidden encumbrances and errors in the contract. The lawyer will check the Chanote (land title document), condominium charter, compliance with the foreign ownership quota (maximum 49% of areas) and availability of construction permits.
Transfer money officially through a bank with a note on the intended purpose. To register a condo for a foreigner at the Land Office, a Foreign Exchange Transaction Form is required, confirming that funds came from abroad. Without this document, you will not be able to register full ownership (freehold) and will only receive a long-term lease (leasehold).
