GH Bank readies Bt36 billion loans
THE GOVERNMENT Housing Bank (GH Bank) has tailored mortgage offerings to four groups of prospective homebuyers under plans to support lending to low and middle-income earners. Some Bt36 billion in loans have been earmarked for these groups.
Chatchai Sirilai, managing director, yesterday said the state-owned bank had begun offering affordable loans to applicants in the targeted groups, which include teachers, civil servants and police officers.
Teachers who do not already own a property can borrow at an annual interest rate of 3 per cent or the minimum retail rate (MRR) minus 3.5 per cent in the first and second year, the bank said. The rate will rise to MRR- 2.75 per cent in the third and fourth years. In the fifth year, it will be MRR-1.75 per cent, before moving to MRR-1 per cent from the sixth year. The MRR rate now is 6.75 per cent
The second group comprises civil servants, police officers, soldiers and state enterprise employees. The home mortgage rate will be about 3 per cent in the first and second years, or MRR-3.75 per cent.
The rate rises to MRR-2.75 per cent in the third year and MRR-1.75 per cent in the following year. From the fifth year, the rate will be MRR-1 per cent. People aged over 50 make up the third group. Those wanting to buy homes designed for older people will gain a lower mortgage rate. For the first and second years, the rate will be about 3.25 per cent annually and increase during the third and fifth years. The rate from the sixth year will be MRR-1.25 per cent. Those who buy ordinary homes will be charged a slightly higher rate of around 3.7 per cent in the first year.
The fourth group comprises the self-employed and others with an annual income not exceeding a level set by the bank. Each applicant can borrow no more than Bt2 million. The mortgage rate will be 2.99 per cent in the first two years, increasing to 4 per cent and 4.75 per cent in the third and fourth years, respectively. From the fifth year, the rate will be MRR-1 per cent for social security fund members and MRR-0.75 per cent for retail borrowers.
Applications will be accepted until June 30.
