Higher down payment for 2nd homes starting soon

THE Bank of Thailand today (Oct. 5, 2018) announced that most likely from January 1, 2019 onwards buyers of 2nd homes will have put minimum 20% down payment instead of 5 to 10% at present, Sanook.com reported.

The central bank said housing loan criteria are being improved to ensure that banks release suitable amount of these loans and do not increase household debt nor spur speculation.

Deputy Prime Minister Somkid Jatusipitak said while this measure is for the central bank to handle, it is a good one as banks would be more careful in giving out loans, but they should still accommodate low-income earners so that they are able to own their own homes.

Mr Chatchai Sirilai,  president at Government Housing Bank, said in controlling housing loans for 2nd or 3rd homes it has to be clear where speculation is taking place, as only then can it be controlled at the right point.

His bank gives housing loans to low- and mid-income people who mostly buy a townhouse as their 1st home. When they have additional income they buy a 2nd one leaving the townhouse for their parents to live in but both purchases are for real use, he added.

Mr Chartchai Payuhanaveechai, president of Government Savings Bank, said this measure is aimed at controlling speculation, particularly in the condominium segment, because in 2nd quarter new housing launches dropped, and along with it too the inventory, with this being opposite of a bubble.

He added that his bank gives loans to low-income earners with a property costing not more than 2 million baht.


Top: A view over Lake Ratchada towards the Asoke intersection. Photo: Mark Fischer (CC-BY-SA-2.0)