Transcript Slide 1

Government Housing Bank, Thailand
Growth with Stability in
Affordable Housing Markets:
“Primary Mortgage Markets
Growth & Prospects”
Ballobh Kritayanavaj
Senior Vice President
G H Bank – Thailand
Jan. 30, 2011
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Housing Completion in Bangkok
and Metropolitan Region
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Housing completions in Bangkok
and Metropolitan Region by types
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Newly - launched Housing Units Bangkok and Vicinity
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New Home Loans in Thailand
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Market Share of New Home Loans
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Home Loans Outstanding in Thailand
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Market Share
of Home Loans Outstanding
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GH Bank VS Commercial Banks
Branches
include
Headoffice
Asset
(mil.THB)
(Oct)
MOR
MRR
Deposit
1 Year
GH Bank
156
708,065
7.875%
7.25%
3.25%
Commercial
Banks
(Averaged)
6,151
12,981,188*
8.0406%
8.6281%
2.25 3.60%
Sources : GH Bank and Bank of Thailand (BOT) as of Dec 2011
* Commercial Banks registered in the country
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GH Bank VS Commercial Banks
Maximum
Interest Rates
(normal case)
GH Bank
19%
Commercial
Banks
(Averaged)
12.00 15.195%
Maximum
Interest Rate
(default)
13.5%
15 - 18%
Valuation Fee
Refinance Fee
Debt
collection
fee
1,700 - 2,800
year 1 = 3%
year 2 = 2.5%
year 3 = 2%
1,000
Baht/Time
0.1% of
loan amount
No charge
0.25% of
loan amount
2,500 - 5,350
3% of
loan agreement
Management
Fee
Sources : GH Bank and Bank of Thailand (BOT) as of Dec 2011
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Mortgage rates strategy
1. Interest rate 0% (3 – 36 months)
- GH Bank 0% for 36 months, year 4 – 7 = MRR, year 8 onwards MRR -0.5
- Commercial banks (6) 0% for 3 -10 months,
year 1-3 = MRR minus, year 8 onwards MRR
2. Fixed short term rate (1-3 years)
- Commercial banks (4) 1 year = 2.5% - 5.25%
- Commercial banks (4)
2 year = 3.75% - 5.50%
after that MLR -0.25% to 1.75%
- Commercial banks (3) 3 year = 3.45% - 6.25%
3. Special floating rate (1-3 years)
- GH Bank year 1-2 = MRR-2%, year 3 = MRR-1% after that MRR-0.5%
- Commercial banks (2) 1 year = MLR – 1.75% and MLR - 2.6%
- Commercial banks (5) 2 years = MLR - 1.00% to 4.00%
- Commercial banks (7) 3 years = MLR – 0.40% to 4%
4. Hybrid rate
- Commercial banks (5) fixed year 1 = 1.25% - 2.75%
float year 2 = MLR – 1.00 to 2.00
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GH Bank Leading Roles
 Mortgage Market Leader in Thailand
34 - 40% market share
 Gov. instrument in real estate market revival and economic
growth stimulation
- Government assisted- mortgage programme for first-time
homebuyers
- Bann Eur-Arthorn (NHA), Bann Mankong CODI
 Housing Finance Infrastructure
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National Credit Bureau (established in 2004,
currently with 75 institutional
members and 30 million accounts)
Real Estate Information Center, www.reic.or.th
(2004)
 Housing Knowledge and Education Center
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GH Bank Housing Journal
- Thai
(1995)
Asia Pacific Housing Journal - English (2007)
Homebuyer information center www.ghbhomecenter.com
Real estate professional associations (>16)
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Deposit rate
1.00 – 4.58%
Reference rate
MRR = 7.25%
Mortgage rate
MRR - ? % (up to selected program)
Loan Conditions
LTV
Interest rate
Term
Ordinary Customers
70-80%
MRR- ? %
30 yr.
Welfare Customers
90-100%
Ordinary rate - 1.00%
30 yr.
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GH Bank Home Mortgage Lending
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•
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Maximum loan amounts : no limit (average loan size Bt500,000)
Loan - to - value ratios : 70 – 100%
Loan term
up to 20-30 years
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(Age of borrowers plus loan term must not exceed 70 years)
Mortgage Rates
1. Floating rate = MRR
2. Special floating rates = MRR minus
3. Hybrid mortgage (fixed + floating rate)
• Mortgage interest rate ceilings
GH Bank 19% / Commercial Banks 11.25% - 18%
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GH Bank Home Mortgage Lending
• Valuation fees : Bt1,700 – 2,800
• Origination Fees : 0.01% if exceed Bt500,000
• Loan analysis and approval : Credit scoring
• Property transfers: 2% mortgage registration: 1%
• Monthly payment calculation : MRR+1%
• Loan repayment channels : Banks + pay points e.g. 7-11, Post office
JayMart,Pay Point, Tesco Lotus, Advanced Info Service Plc
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•
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Mortgage amortization : declining principal balance
Prepayment penalties : First year at 3%, year 2-3 at 2.5%
Late charges : 60-day-past-due charges 13.5%
Mortgage related insurance : fire insurance (compulsory)
Mortgage life insurance (voluntary)
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First-Time Home Buyer Mortgage
Programme I
Total Programme Loan amount : Bt25 billion
 First- time homebuyers : no homeownership record
 Purpose : Buying New home, resale home or home construction
 Loan limit : not more than Bt3 million
 Loan period : not more than 30 Years
 Loan interest rates - 1st – 2nd year = 0%
- 3rd – 5th year, welfare customers
- 6th year,

= MRR - 0.5%
ordinary customers
= MRR (current = 7.25%)
welfare customers
= MRR – 1.00%
ordinary customers
= MRR – 0.50%
Fees : mortgage registration fee (1% Exempt),
Program
transaction fee (1% from 2%)
period : 9 May – 30 Dec. 2011
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First-Time Home Buyer Mortgage
Programme II
Total Programme Loan amount : Bt20 Billion
 First- time homebuyers - no homeownership record
 For : Buying New home, resale home or home construction
 Loan limit : not more than Bt1 million
 Loan period : not more than 30 Years
 Loan interest rates
1st – 3rd year
4th Onwards
= 0%
= MRR-0.5% (Current MRR = 7.25%)
 Refinance : not allowed before 7 years
 Program period : 11 Oct. 2011 – 30 Sept. 2012
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Special Five-Point Flood Loan
-- Mitigation Programme
1. Waiving monthly loan payments for six monthly program and
reducing interest payments to zero per cent during the same period,for
home owner with damaged homes. For those with several damaged
homes,an additional six months of payments will be waived.
2. Borrowers disabled or lost lives during floods will have interest
payments reduced to 0.01 per cent per year for entire loan terms.
3. If borrowers’ home became uninhabitable because of flooding,their
loans would be reduced to land-values only.
4. Any new or existing borrowers that had their homes damaged by
floods could apply for special home-repair loans (not exceeding Bt 1
million) at two per cent interest for five years.
5. The Bank will provide loans not exceeding Bt 100,000 per person
(no collateral needed) to renovate damaged home at four per cent fixed
interest rate for five years.
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Mortgage Market : Growth & Prospective
• Government housing policy
• MOF + BOT Regulations
• Economic growth
• Employment and income growth
• Bank’s strategies and competitive advantages
• Financial market
• Housing market situation (RE cycles)
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Housing Ladder
Extremely High (detached houses)
Upper 20 Million THB
10 Million THB
5 Million THB
8
167,300
Very High (detached houses)
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High (detached houses / condominiums)
6
83,700
41,900
Medium High (condominium / townhouses / detached houses)
5
3 Million THB
2 Million THB
Medium (condominiums / town Houses / detached houses)
4
25,100
14,800
Medium Low (condominiums / cheap townhouses / duplexes / one-storey detached houses)
3
1 Million THB
8,400
Low (duplexes / small condominiums)
2
500,000 THB
4,200
Very Low (squatters / slums / rental housing / apartments)
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Remark : Monthly payment calculation interest rate 7% ,Term 20 years, Loan to Value ratio 85%
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Growth with Stability in Affordable Housing Market (THAILAND)
Ministries
Ministry of Finance
Govt. Agencies
Special Financial
Institutions
Bank of Thailand
(Regulators, Financiers,
Com. Banks
Developers, Land registrations) Financial Company
Other Financial
Institutions
Private Sector
Professional
Associations
Training &
Education
Information
Developers
Ministry of Social Development
& Human Security
GH Bank
GSB
SMC
Valuers
National Housing Authority (NHA)
Community Organizations
Development Institute (CODI)
RE Brokers
Ministry of Interior
Land Department
Dept. Public Works and
Town & Country Planning
Community/
Property Managers
Thai Condominium Assoc. Thai Valuers Assoc.
Thai RE Brokers Assoc. Property Mangt. Assoc.
Housing Business Assoc. Valuers Assoc. of Thailand
Thai Real Estate Assoc.
Universities
Training Centers
CU - TU
RU - ABAC
AREA- TRES
-Associations
REIC
GH Bank
Com. Banks
www.reic.or.th
www.ghbhomecenter.com
Journals (Thai + Eng)
Websites
Financiers
Housing Finance Assoc.
Others
Websites
Magazines (e.g. Home Buyer Guide etc.)
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Ballobh K. 20 Jan 2012
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