Banks kick off drive for mortgage loans

CIMB Thai Bank is offering a fixed interest rate of 3.33 per cent for three years, the lowest in the market, because the bank wants to test real demand, Onanong Udomkantong, executive vice president and head of retail loan products, said yesterday.
Earlier, TMB Bank had marketed a fixed interest rate of 3.75 per cent for three years, while the average rate for the first three years in the market is 4 per cent.
“We have seen comments from disciplined customers about the interest rate for housing loans,
“They told banks that a good customer should get a good return from the bank.
“So we’ve tracked the credit bureau history of consumers with a monthly income of Bt30,000 with the bank’s balance scoring and offer pricing to those segment,” she said.
People with a monthly income of Bt30,000 can afford a Bt2 million home.
They will pay a monthly instalment of Bt7,000 based on the interest rate of 3.3 per cent.
These customers can reduce principal payments by a big margin from the first year.
The campaign covers new and second homes.
The supply of second homes is increasing and the bank has seen positive demand for them, since the owner of a second residence worth Bt5 million will have to pay tax.
The bank targets new home loans of Bt3 billion-Bt4 billion from the latest campaign.
This is expected to help the bank achieve the whole year new loan target of Bt14 billion-Bt15 billion.
This will drive the bank’s outstanding loans to Bt70 billion from Bt63 billion last year.
Siam Commercial Bank yesterday introduced a special “Ready Home” campaign for its non-performing assets in the single family home, duplex, townhouse, commercial building and condominium categories.
The units must be worth at least Bt1 million and located in Greater Bangkok.
There are three special promotions – Bt12,000 worth of home health checks, Bt8,500 in moving expenses and a Bt50,000 discount for the purchase of furniture.
Certain conditions apply.
Customers purchasing NPAs in other provinces will score vouchers worth up to Bt10,000 and other special offers. Transfers must be completed by September 30.
Bank of Ayudhya’s latest campaign for new homes comes out today.
It is optimistic that the marketing blitz will boost its home loans in the second half because it believes that homebuyers still have purchasing power, even though the government’s measure for housing projects ended in April, said Nathapol Luepromchai, executive vice president.