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Public Land Company Limited

Home is not just A Place, it’s a Feeling

Public Land Company Limited

articleZero-interest mortgage campaigns in May

Zero-interest mortgage campaigns in May

 

 Zero-interest mortgage campaigns in May

 

Several banks are planning to launch the zero-interest mortgage campaigns to resume pricing strategies in May, after the government’s stimulus scheme for housing purchases ends on April 28.


The government incentives on housing transfer fees started last October. But some developers have added their own incentives to lure buyers.


Accordingly, first senior vice president of KBank  Mr Boonchan Kulvatunyou, Banks that have participated in the Money Expos have emphasized mortgages as key products, but they have avoided zero interest rates for several years after the central bank asked them to tone down such campaigns.



Mr. Boonchan also added that Money Expo in May will see the return of such promotions, and some campaigns will be subsidized by residential developers, or launched in cooperation between banks and developers.



Highlighting the strategy of k Bank, Mr. Boonchan said KBank is considering a zero-interest campaign but it should tap the right customer segment, buyers who will not become bad debtors in the future.


The bank this year targets new loans of Bt50 billion, higher than last year's Bt48 billion. To achieve that target, it must structure financial solutions and develop campaigns in line with the risk of each segment.



Based on the new-loan target of Bt50 billion, outstanding loans this year will increase to Bt250 billion from Bt235 billion last year.

 

Upper-income customers who buy homes from top developers will be offered a fixed rate of 3.8-3.9 per cent for the first three years. General customers who buy from run-of-the-mill developers will be offered interest rate of around 4-4.5 per cent for the first three years.



Customers who buy from top property developers are regarded as quality clients, so people in this segment have a high chance of getting their mortgages approved, Boonchan said. Their approval rate is 75-80 per cent, compared with 55-60 per cent for customers who purchase from lower-echelon developers.










Source : The Nation  

SUCHEERA PINIJPARAKARN

02 December 2016

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