GHB touts home loans
WITH the expected rise in global interest rate in the latter half of the year, the Government Housing Bank (GHB) has pointed out that now is the time for securing a mortgage as local interest rates have yet to move up.
Chatchai Sirilai, president of the bank, said “It’s time now for making a housing loan as local interest rates have yet to rise despite the US Federal Reserve hiking its benchmark rate twice this year.”
An upward trend in interest rates is expected in the latter half of this year, following Fed hikes.
Meanwhile, Thailand’s housing loan market has well adjusted to the upward trend, as seen in fewer offers of fixed rates from lenders, he said. For example, the offer of three-year fixed rates have now been replaced by minimum retail rate minus, he added.
GHB will manitain its interest rate until the end of August. After that, we will consider the market direction. If rates are rising in the market, the bank (among other banks) will be the last to increase its rates,” Chatchai said.
The bank expects a total of Bt189 billion in new loans this year, having extending Bt100 billion from the beginning of the year, he said.
GHB will offer Bt6.5 billion in special-rate housing loan at its annual event “GHB Houses@Bangkok, ” which will be held at Queen Sirikit National Convention Centre during July 5-8.
The promotional housing loan will bear a lending rate of 0.65 per cent per annum for the first six months with a fixed rate of 3.65 per cent per annum for 7th-36th months. The average lending rate will be 3.15 per cent for the first three years. Generally, housing-loan lending rate averages 3.4-3.5 per cent per annum.
