Although the Bank of Thailand has claimed its ‘more stringent’ down payment requirements, effective from April 1, 2019, will lessen risks of a property bubble, at first glance there seems to be little change from current procedures.
From April, the Bank of Thailand will require a minimum down payment for third and subsequent mortgages of 30 percent of the price of the property.
However, in a big change from its previously-announced suggestions, it plans to ease minimum requirement second mortgages to between 10 percent and 20 percent.
The exact rate will depend on how many repayments the individual has made on their first mortgage.
It did admit that the start date for the new attempted cooling measures has been delayed until Q2 2019 after pressure from property developers and financiers.
In many cases these ‘new’ figures are actually lower than many Thailand property developers currently demand, which in some cases are as much as 50 percent.
What we believe the Thailand property sector will see between now and April is many more marketing gimmicks, offering a ‘beat the new rules’ slogans to temp investors and buyers to act sooner.
The Bangkok Post has published a full summary and useful graphic about the details of the new requirements.