GSB offers cheap mortgages
The state-owned Government Savings Bank (GSB) is offering 25 billion baht in low-rate mortgages, at 0.01% per year with a 10-baht instalment payment for every 1 million baht loaned for the first year.
The mortgages include the government's reduced transfer and mortgage fees of 0.01% and are applicable for building, buying and repairs.
Additional refinancing of mortgages comes with instalment payments that can be made for up to 40 years.
Chatchai Payuhanaveechai, GSB's president and chief executive, said the low-interest loan gives more people the chance to own their own residences, with support from financial institutions.
The bank launched the loans to meet consistent demand for housing, especially at year-end. Loan seekers can apply for the loan from Dec 1.
The low-interest home loans vary on borrowers' ability to pay off debt and have a maximum loan limit. The fixed interest rate for the second and third year is equal to 4.35% per year.
From the fourth year, the interest per year is the minimum retail rate (MRR) less 0.50% (the current MRR is 6.745% per year).
As such, the three-year average interest rate equals 2.903% per 1 million baht loan with a 20-year instalment.
The instalment in the first year equals 10 baht per month, followed by the second-year instalment of 3,700 baht per month. From the fourth year, the instalment is 8,300 baht per month.
Customers can choose to make payments in instalments over a longer period and loans can be tailored to the borrower's ability to pay off debt.
"Home loans also have low instalment payments as an option to help borrowers during downturns and emergencies," Mr Chatchai said.