State-owned Government Housing Bank (GH Bank) has been instructed to team up with the Treasury Department, the National Housing Authority and relevant private firms to build affordable housing projects for the elderly, low-income earners and young workers.
Deputy Prime Minister Somkid Jatusripitak said yesterday after meeting high-ranking officials of GH Bank and the Treasury Department that the bank must make its mission to help people become homeowners, rather than just providing housing loans.
"The GH Bank should play a greater supportive role, not only to help people afford their own homes, but to create well-being in society and support those who take care of their ageing parents or the elderly," he said. "Moderate profits and no non-performing loans should be enough for the bank."
Mr Somkid said Thai people taking care of the elderly should be given special privileges to enable access to housing loans with low interest rates.
The bank also needs to partner with the Treasury Department, the National Housing Authority and property developers to build affordable housing projects for those groups of people, Mr Somkid continued.
It is estimated that some 50-60 billion baht of pre-financing loans will be required for this low-cost housing venture.
Special housing loans for those who take care of the elderly are likely to become available over the next two months.
Chakkrit Parapantakul, director-general of the Treasury Department said the department is set to allocate and plots in all provinces for the low-cost housing development.
He said the department now has four land plots in four provinces including Pathum Thani, Khon Kaen and Chiang Mai ready to be developed for housing the elderly.
Prices should be 600,000-700,000 baht per unit and this project is likely to be implemented in October, Mr Chakkrit detailed.
GH Bank president Chatchai Sirilai said the bank is also ready to pursue the low-cost housing development as instructed.
He said the lending scheme for those who take care of the elderly is expected to be implemented over the next two months.
The scheme will offer special privileges such as a low interest rate of about 3.63% for eight months.
The bank said recently that it planned to provide 28.5 billion baht worth of pre- and post-financing to help the elderly own homes.
Of the total, 3 billion baht will be lent to borrowers aged 50 and older, 20 billion will go to those who are 60 and above, and the rest will finance housing projects.
People aged 50 and above will be able to co-sign a mortgage with their spouses and/or children, but the maximum age for applying is 70. For the first four years, the mortgage rate will be 3.25%, less the minimum retail rate (MRR), or 3.50%; 1% minus MRR for borrowers who are given special lending conditions by the bank; or 0.5% minus MRR for general customers throughout the loan term.
Four billion baht in loans will be extended to housing projects, with 40% of units to be sold to elderly people. For these, GH Bank will impose a fixed rate of 4% for the first two years and at least 1% minus the minimum lending rate (MLR) from the third to the fifth year.