Finance Minister Ekniti Pushes Low-Interest Home Loans, Higher Tax Deductions
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Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas, speaking at the opening of the 50th Home and Condo Fair, emphasized the real estate sector's vital role in the Thai economy due to its links with construction materials, labor, furniture, and home decor. He noted that promoting housing access not only improves quality of life but also stimulates continuous economic activity across related industries. However, global economic shifts, geopolitical conflicts driving up energy and living costs, and climate change require the sector to adapt, particularly through energy-efficient and clean-energy housing, alongside expanding credit access.
Ekniti stated the government prioritizes increasing public access to housing loans, using state bank mechanisms to support low-interest lending, such as programs helping low-income earners and first-time buyers access funding more easily. At the same time, high bank loan rejection rates (Reject Rate) are a key market constraint, as consumers unable to meet lending criteria cannot complete purchases, affecting both buying power and developer sales.
The government is therefore negotiating with the Bank of Thailand to support lending via guarantees from the Small Business Credit Guarantee Corporation (SBCG), reducing risk for financial institutions and boosting confidence in lending to developers and those with credit limitations. Additionally, the SME Credit Boost project, a collaboration among relevant agencies and commercial banks, aims to strengthen guarantee mechanisms and support business lending.
Three real estate associations propose raising tax deduction ceiling to 200,000 baht. Sunthorn Thapphapha, President of the Housing Business Association, revealed that three associations — the Housing Business Association, the Thai Condominium Association, and the Thai Real Estate Association — have submitted proposals for additional housing market support measures. Two main proposals include raising the personal income tax deduction for home loan interest from the current 100,000 baht to 200,000 baht, and adjusting land and building tax collection to align with actual usage purposes.
The proposed interest deduction increase would cover new home purchases with transfers from November 1, 2026, to December 31, 2027, and is under government consideration for details and appropriate timing. If implemented, it would incentivize consumers to buy housing amid an economy not yet fully recovered. For example, a buyer purchasing a 7-million-baht home would benefit from the higher deduction.
