Cabinet approves 0.01% cut in property transfer/mortgage fees
Cabinet cuts property transfer and mortgage fees to 0.01% for homes under 7M baht, effective until June 2026 to ease buyer burden and aid developers.
The Cabinet on Tuesday approved a proposal by the Ministry of Finance to reduce ownership transfer and mortgage fees for houses and condominium units to 0.01%. The measure will remain in effect until mid-2026.
Deputy Finance Minister Paopoom Rojanasakul said the Cabinet agreed to lower the ownership transfer fee from 2% and the mortgage fee from 1%, both to 0.01%, to ease the financial burden on homebuyers and support property developers in selling unsold units.
Eligible Property Types and Conditions
According to Paopoom, the reduced fees will apply to the following property types:
- Single-detached houses
- Twin houses
- Townhouses
- Shophouses
- Land with such buildings
- Condominium units
To qualify for the fee reduction, the price of each unit must not exceed 7 million baht.
Response to High Inventory in Property Sector
Paopoom said the proposal was made in response to the high number of unsold residential units in the market. The fee reduction is aimed at stimulating demand and reducing this surplus.
The new rates will come into effect once the Ministry of Finance's announcement is published in the Royal Gazette. The reduced rates will remain valid until 30 June 2026, aligning with the expiration of the Bank of Thailand’s easing of its loan-to-value (LTV) regulations.
LTV Easing Expected to Boost Market
Last month, the Bank of Thailand announced a relaxation of its LTV rules, allowing banks to issue housing loans at 100% of collateral value.
Paopoom noted that, historically, such easing by the central bank has had a positive impact on the property market, boosting both sales and accessibility.
