The property market in Thailand is set for a boost after the Government approved a Bt25 billion (ã500 million) loan programme to help first time buyers get on the property ladder. The scheme will offer low or nil rates of interest for first time buyers with special repayment terms and conditions and experts believe it will help boost the property and mortgage markets in Thailand.
Scheme offers nil rate mortgages for first time buyers purchasing property in Thailand
Under the scheme, the Government Housing Bank (GHB) will offer mortgages for the first time buyer at a zero interest for the first two years if it is less than three million baht (approximately ã61,600), with a full term of 30 years. Homebuyers with less than one million baht annual income (approximately ã20,200) can borrow up to one million baht.
Applicants who are successfully approved for the scheme will also be eligible for a waiver on a 1 per cent mortgage fee.
According to Kasikorn Research Centre (KRC) the programme will help stimulate both the mortgage and the property market in Thailand.
Scheme aims to boost Thai property market
The amount of money the Thai government has set aside for this scheme totals around 8 per cent of the value of new mortgage loans extended each year in the country.
According to a report by the Land Department and the Real Estate Information Centre published by Thailand Business News, ââ¬Ëproperty ownership transfers in Bangkok and its environs in the first two months of this year totalled 18,907 units, down 21 per cent from the same period last year.ââ¬â¢
One of the main causes of a fall in the number of transactions had been recent interest rate rises in Thailand. The four major banks now offer rates at above 6.5 per cent and increasing rates have reduced demand for mortgages and property. It is hoped that the property market in Thailand can therefore be stimulated by incentivising first time buyers with low rate loans.
