The government is pressing ahead with the second phase of its low-cost housing scheme, with beneficiaries of the project extended to the elderly and those planning to have children.
Deputy Prime Minister Somkid Jatusripitak said Tuesday he has instructed the Government Housing Bank (GHB) to start work on the second phase. He asked it to come up with a firm proposal and present it to him when he pays a visit next week.
This phase will cover targeted groups, including people who are taking care of elderly parents and those starting a family.
It is part of the 1-million-unit, low-cost government housing scheme, which was launched late last year to help low-income earners own their own home.
Mr Somkid said the government will compensate the state-owned bank for the shortfall in revenue caused by disbursing loans at low interest rates.
The cabinet approved special loans for the first phase of the project on Nov 20 of last year.
In December, bank president Chatchai Sirilai said he expected the loans would be taken out at a brisk pace.
A 50-billion-baht housing loan plan was made as part of the bank's 60-billion-baht allotment for the scheme.
Another 10 billion baht has been earmarked for project financing so property developers can build residential projects, of which at least 40% are to be sold at up to 1 million baht per unit.
The 10 billion baht of pre-financing carries an interest rate of 1.25 percentage points minus the minimum lending rate (MLR) for constructing low-cost houses. Property developers will be paid 0.75 percentage points minus the MLR for units priced at more than 1 million baht.
Under the mortgage scheme, 20 billion baht was reserved for those earning up to 25,000 baht a month, who are charged a fixed 3% for the first five years, and one percentage point thereafter minus the minimum retail rate (MRR) for those working at companies that have contracts with the bank. The rate will be 0.75 percentage point minus the MRR for general borrowers.
Based on the 3% rate for a loan of 1 million baht, borrowers are required to pay a mere 3,800 baht a month. Those who earn up to 25,000 baht are also entitled to free appraisals, with front-end and registration fees waived.
Another 30 billion baht is for those with a monthly income of above 25,000 baht. Borrowers who fall into this category are offered the fixed 3% rate for three years and one percentage point minus MRR for those working at companies that have contracts with the bank, and 0.75 percentage point minus MRR for general borrowers from the fourth year onwards.
Nathporn Chatusripitak, a spokesman for Mr Somkid, said the cabinet had revised the special interest loans extended to those qualified under the scheme in the first phase.
The 20 billion baht reserved for those earning up to 25,000 baht a month will double. However, limited demand from those with a higher monthly income prompted the cabinet to slash the 30 billion baht worth of loans originally allocated for this group to 10 billion baht.
The cabinet also extended the deadline for getting a loan in the first phase.
