The new president of the Government Housing Bank (GH Bank) plans to raise the share of retail mortgage loans from 85% overall to 91.5% to increase opportunities for low earners to own their own home.
Angkana Pilanovat Chaimanus said the target group is those who earn no more than 15,000 per month and apply to borrow a maximum of 750,000 baht.
She said she was unconcerned about a potential bubble in the property sector, as the bank has tightened its scrutiny of lending and collateral.
Those who seek loans to buy homes in provincial areas are mostly real buyers and not speculators, she said.
According to GH Bank, rising demand for provincial real estate, especially in the Northeast, is largely a function of enthusiasm over the upcoming Asean Economic Community in 2016.
The bank aims to extend 120 billion baht in new loans this year, a 6.5% increase from last year. Outstanding loans are expected to grow by 3.8% to 733 billion baht this year.
Plans call for raising deposits to 594 billion baht, up 4% from a year earlier, while assets are set to rise by 4% to 764 billion baht.
She said 12,000 borrowers with 8 billion baht in loans applied for no-interest mortgages during the three years of the government's first-time homebuyer scheme, which ended in March.
About the author
- Writer: Wichit Chantanusornsiri
Position: Business Reporter