The Bank of Thailand makes some changes to new planned mortgage lending rules and delays an effective date for three months to April. (Photo by Thanarak Khunton)

The Bank of Thailand, concerned about rising bad property loans, on Friday announced some changes to new planned mortgage lending rules and delayed an effective date for three months to April.

Last month, the central bank said it would require buyers of homes worth more than 10 million baht and of second homes to make downpayments of at least 20%.

But after a hearing, the BoT will require buyers of first and second homes worth more than 10 million baht to make downpayments of at least 20 %, assistant governor Jaturong Jantarangs told a briefing.

Buyers of second homes worth less than 10 million baht will have to make downpayments of at least 10% if their first homes have been paid for at least three years, otherwise a downpayment of at least 20% will apply.

Buyers of third homes, regardless of prices, will have to make downpayments of at least 30%.

"From the feedback we've got, there is a concern about adjustments of affected groups, and some say second homes are not always for speculation. It's real demand," Mr Jaturong said.

The new rules comes amid elevated household debt and rising bad mortgage loans. Intensifying competition among banks for mortgage business has led to looser lending for property purchases.

Housing loans rose 6.2% in the end of the second quarter from a year earlier, while non-performing mortgages hit 3.39% of the total, the highest level since the end of the global financial crisis in 2009.