THE Bank of Thailand was urged to by property developers to change the 20% down payment rule for second homes to third homes and put off enforcement from January 1, 2019 to January 1, 2020, Thai News Agency reported this afternoon (Oct. 11, 2018).
The Central Bank had called a meeting with bankers and property developers to hear their views on its new regulation that 20% down payment be required for all homes priced higher than 10 million baht and all second homes, with this drawing strong calls to relax it.
Mr Chatchai Sirilai, managing director of Government Housing Bank, said second homes are necessary today because many people who have houses in the suburbs need a city center condominium to be close to their workplace.
Moreover enforcing this regulation would push more lower income people to borrow outside the financial system, he added.
As this bank is rushing to release housing loans for transfers at year-end, he also urged that the rule to put off to January 1, 2020.
Mr Nathapol Luepromchai, Bank of Ayudhya’s executive vice president for housing loans, said he had submitted various suggestions to the Central Bank such the criterion on the number of houses being purchased and details of refinancing.
Meanwhile property developers told the Central Bank that the 20% down payment criterion should apply to third homes and enforcement be put off from January 1, 2019 to January 1, 2020 to give financial institutions and the public more time to adjust.
Top: View from Lebua , State Tower, one evening in Bangkok. You can see boats all lit up on the Chao Phraya River. Photo: Swaminathan (CC-BY-2.0)