Finance Minister Proposes 55 Billion Baht Budget for Homebuyers

Finance Minister Pichai Chunhavajira announced on Monday that the Cabinet will consider a series of measures to stimulate the property market at Tuesday's meeting. The Finance Ministry is set to propose a budget of 55 billion baht for low-interest loans of up to 3 million baht for homebuyers.

Additionally, a 5-billion-baht budget for low-interest loans of up to 100,000 baht for house repairs is also on the table. Pichai also plans to ask the Cabinet to approve a 10-billion-baht budget to provide soft loans to workers for house purchases, in collaboration with the Labour Ministry.

Extension of Fee Reductions and Potential LTV Benchmark Adjustment

Pichai is pushing for an extension of the reduction of transfer and mortgage fees to 0.01%, which are set to expire at the end of this year. The Finance Ministry is still drafting details of the extensive package of measures to stimulate the property market. Pichai is also considering lowering the loan to value ratio (LTV) benchmark to allow banks to approve loans to homebuyers more easily.

Pornnarit Chuanchaisit, president of the Thai Real Estate Organisation, urged the Bank of Thailand to cut the policy interest rate again to boost recovery in the property market. He also called for the government to announce a package of measures to stimulate the property market, including lowering the LTV measure.