31 October 2026 Published by Silicon Valley Innovation ไทย

Thai Industry Wire

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Mortgages

Fee cut and 100% LTV help only some Thai home buyers

The fee cut is limited to Thai individuals buying up to THB7 million, and the loan relief still has to get past a bank's debt test.

By Thai Industry Wire Desk · · 4 min read

อ่านภาษาไทย

A boat travelling along a canal lined with wooden houses and a temple roof, with towers in the distance
Houses along a canal in Thailand; illustrative, not a project covered by the measures.Photo by Thirayuth Soonthonranan on Unsplash

A Thai buyer of a condo with an assessed value of THB5 million and a THB4 million mortgage would normally pay THB100,000 in transfer fee and THB40,000 in mortgage registration fee. Under the rates now in force, the same two fees come to THB900.

The rates come from Tilleke & Gibbins, summarising two Interior Ministry notices: the transfer fee falls from 2% to 0.01% of assessed value, the mortgage fee from 1% to 0.01% of the loan. The sums are our arithmetic.

The fee cut: narrow by design

Cabinet approved the extension on 30 June 2026, Reuters reported, and the Royal Gazette published the notices the next day. The rates run to 30 June 2027.

The conditions are strict, per The Nation. The buyer must be a Thai individual. The sale price, the official valuation and the mortgage amount must each be THB7 million or less. The cheaper mortgage fee applies only when the mortgage is registered at the same time as the transfer. Houses, townhouses, commercial buildings, land sold with them and condo units all qualify. Companies and foreign buyers do not, and foreigners account for about 18% to 20% of the market, per The Nation's May 2026 report.

The loan rule: more room, same bank test

The Bank of Thailand's draft, published on 7 May 2026, extends its temporary loan-to-value easing by one year, for housing loans signed between 1 July 2026 and 30 June 2027.

The ceiling is 100% in two cases: collateral under THB10 million from the second loan contract onward, and collateral of THB10 million or more from the first. Read plainly, the first group is people buying another home before they have cleared the first loan, and the second is buyers of dearer homes. Thairath describes the under-THB10 million group as first-time buyers, which conflicts with The Nation's reading, followed here. Its example: on a THB3 million house, a 90% ceiling means a THB300,000 down payment, while 100% means no large down payment.

The central bank cites a slowing market and high unsold supply, and expects little added risk because lenders remain cautious.

One caution: this desk did not see the central bank's final notice. The terms above are from the May draft. CBRE Thailand's 31 August note describes the 100% ceiling as in place for one year, but pairs it with the THB7 million limit that belongs to the fee cut. Check the lender first.

Why rejections matter more than the rules

Cheaper entry costs do not help a buyer a bank turns down. A May 2026 report in The Nation on the Thai Condominium Association's priorities put housing loan rejection at 40% to 50%. The private sector asked for soft loans, debt consolidation and easier LTV rules, and some developers now offer rent-to-own.

CBRE makes the same point from the other side. Mortgage approval, it said, still depends on a borrower's ability to service debt and on creditworthiness. Its managing director, Roongrat Veeraparkkaroon, said the combined measures give the market "a clear push."

Who gains

Developers with finished stock stand to gain. Cushman & Wakefield Thailand says about 55% of Bangkok's unsold condos are priced at THB100,000 per square metre or less, and about 25,700 unsold units are already complete. CBRE expects the measures to speed up sales of ready-to-move-in projects.

Buyers with steady salaries and a bank that says yes gain next. CBRE advised those with irregular income, such as freelancers, to build savings and manage debt first.

Both measures lapse on 30 June 2027 unless extended again. Until then, watch the share of applications banks approve: if the 40% to 50% rejection rate does not move, the help is going to buyers who were already getting loans.

FAQ

Who can use the 0.01% transfer and mortgage fee?

Thai individuals buying a house, townhouse, commercial building or condo unit where the price, assessed value and mortgage are each THB7 million or less. The cut runs from 1 July 2026 to 30 June 2027.

What does 100% loan-to-value mean?

The bank may lend the full appraised value of the property, so the buyer needs no cash down payment. Under the Bank of Thailand draft it applies to collateral under THB10 million from the second loan, and to THB10 million or more from the first.

Will banks stop rejecting applicants?

Not because of these rules. Banks still test income and existing debt, and The Nation's May 2026 report puts housing loan rejection at 40% to 50%.

Sources

mortgageLTVtransfer feehousing loansloan rejection

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