Cabinet okays third phase of budget housing scheme
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Cabinet okays third phase of budget housing scheme

GH Bank’s booth at Money Expo 2022 in Nonthaburi in May last year. (Photo: Nutthawat Wicheanbut)
GH Bank’s booth at Money Expo 2022 in Nonthaburi in May last year. (Photo: Nutthawat Wicheanbut)

The cabinet on Tuesday approved the third phase of a low-price housing scheme worth 20 billion baht, agreeing to 2.19 billion worth of compensation for low-rate mortgages for Government Housing (GH) Bank.

According to government spokesman Anucha Burapachaisri, the low-price housing scheme aims to support, promote and create opportunities for low-income earners, workers and the elderly, offering housing credits under lenient lending conditions.

Prices of homes in the scheme are capped at 1.5 million baht per unit for those living in Greater Bangkok and the provinces constructed on their own land, property developers' land, state land, second-hand homes, non-performing assets of specialised financial institutions, including Bangkok Commercial Asset Management, Sukhumvit Asset Management Co Ltd and those handled by the Legal Execution Department.

The maximum loan repayment period is 40 years, with a fixed interest rate of 3% per year for the first four years.

According to Mr Anucha, interested applicants can apply for loans under the scheme starting from the date of cabinet approval until the end of the scheme scheduled for Dec 30, 2025, or until GH Bank has fully extended the loans approved for the third phase.

As of Dec 26, 2022, the loan facility worth 20 billion baht in the second phase had been fully applied to 22,240 qualified applicants.

Mr Anucha said Prime Minister Prayut Chan-o-cha reiterated at the cabinet meeting procuring housing projects for people is a key government commitment to help low-income earners afford their own homes at affordable prices.

Gen Prayut asked responsible banks to extend the loans to people living in cities and along main transport routes, including rail networks, to expand communities and economic zones.

The third phase of the low-price housing scheme is part of the 1-million-unit, low-cost government housing scheme that was launched in late 2018 to enable low-income earners to own their own homes. The government helps compensate the state-owned bank for the shortfall in revenue caused by disbursing loans at low interest rates.

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