Finance Minister instructs Government Housing Bank to increase mortgage period to 85 years, raise credit lines, and boost capital to help more home buyers amidst economic challenges.
Extended Mortgage Period and Increased Credit Lines
Finance Minister Pichai Chunhavajira has directed the Government Housing Bank (GHB) to extend the mortgage period to a maximum of 85 years, up from the current 70 years. Additionally, the minister has advised the GHB to increase credit lines for housing loans from three to ten million baht and to bolster its capital, according to a source within the Finance Ministry.
Efforts to Ease Mortgage Loan Access
The GHB is urged to play a more active role in providing mortgage loans as many commercial banks have tightened lending criteria due to economic challenges. GHB’s loans currently make up one-third of all mortgages offered by financial institutions, and an increase in capital could help address challenges faced by homebuyers in securing mortgages and reduce the surplus of unsold homes, as stated by the source. GHB customers can now request an extension of their repayment period, resulting in reduced monthly instalments.
