State-owned GH Bank expects brisk business for 50 billion baht in special mortgages for homes priced up to 1 million baht, its chief says.
The loans should be taken out at a brisk pace because of their low interest rates, said president Chatchai Sirilai.
The 50-billion-baht housing loan plan is part of the bank's 60-billion-baht allotment for the 1-million-unit low-cost government housing scheme, aimed at letting low-income earners own their own home.
Another 10 billion baht has been earmarked for project financing for property developers to build residential projects, of which at least 40% are to be sold at a price of up to 1 million baht per unit.
The 10 billion baht in pre-financing carries an interest rate of 1.25 percentage points minus the minimum lending rate (MLR) for constructing low-cost houses, while property developers will be paid 0.75 percentage points minus MLR for units priced at more than 1 million baht.
Mortgage applications will be available tomorrow only, from 8.30am to 5pm.
Under the mortgage scheme, 20 billion baht is reserved for those earning up to 25,000 baht a month, and they are charged at a fixed 3% for the first five years and thereafter one percentage point minus the minimum retail rate (MRR) for those working at companies that have contracts with the bank and 0.75 percentage point minus MRR for general borrowers.
Based on the 3% rate for a loan of 1 million baht, borrowers are required to pay a mere 3,800 baht a month. Those who earn up to 25,000 baht are also entitled to free appraisals and waived front-end and registration fees.
Another 30 billion baht is for those with a monthly income of above 25,000 baht. Borrowers who fall into this category are offered the fixed 3% rate for three years and one percentage point minus MRR for those working at companies that have contracts with the bank and 0.75 percentage point minus MRR for general borrowers from the fourth year onwards.