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Ballobh Kritayanavaj Senior Vice President GH Bank – Thailand

Workshop on Housing Finance. “ Housing Finance Market in Thailand”. Asia Pacific Union for Housing Finance (APUHF) Ulaanbaatar, Mongolia 26-29 June 2011. Ballobh Kritayanavaj Senior Vice President GH Bank – Thailand. 1. Residential Mortgages in Thai Economy.

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Ballobh Kritayanavaj Senior Vice President GH Bank – Thailand

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  1. Workshop on Housing Finance “ Housing Finance Market in Thailand” Asia Pacific Union for Housing Finance(APUHF) Ulaanbaatar, Mongolia 26-29 June 2011 Ballobh Kritayanavaj Senior Vice President GH Bank – Thailand 1

  2. Residential Mortgages in Thai Economy Unit : Million Baht Source : Bank of Thailand

  3. GDPVS New Home Loan Growth Rates in Thailand

  4. Housing Completion in Bangkok and Metropolitan Region

  5. Newly - launched Housing Units - Bangkok and Vicinity

  6. Newly - launched Housing Units - Bangkok and Vicinity

  7. New Home Loans in Thailand

  8. Market Share of New Home Loans

  9. Home Loans Outstanding in Thailand

  10. Market Share of Home Loans Outstanding

  11. GH Bank • Established in 1953, under the Ministry of Finance (MOF) • State Enterprise, solely-owned by the government • SpecialisedHousing Finance Institution

  12. GH Bank Purposes • Assists Thai people to have their own home • Provides mortgage loans to general public, emphasises on low and middle income groups • Operates in the banking system oncommercial basis • Competes in the free financial market both in funding and lending • No direct-funding or subsidy from the government

  13. GH Bank Organization Assets : 678,904 million baht (2010) (Rank no. 7) Home loans : 659,092 million baht (2010) Deposits : 546,277 million baht (2010) Profit : 6,353 million baht (2010) Staffs :2,457 (as of April,2011) Branches :78 branches (BMR=32, Provincial = 46) 18 mini- branches 16 mobile credit unit 26 One Stop Services 15 Off-site banking counters

  14. GH Bank PROFIT Source : GHBank

  15. GH Bank Financial Ratio Source : GHBank

  16. Expansion of GH Bank Assets

  17. GH Bank’s Deposit Outstanding

  18. GH Bank’s New Home Loans

  19. GH Bank’s Home Loans Outstanding

  20. Net Interest Margin GH Bank VS Commercial Banks

  21. GH Bank’s role • Mortgage Market Leader in Thailand 34 - 40% market share (highest) • Govt’ instrument in real estate market revival and economic growth stimulation - Government assisted- mortgage programme for first-time homebuyers - etc. • Housing Finance Infrastructure • 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 • GH Bank Housing Journal - Thai (1995) • Asia Pacific Housing Journal - English (2007) • Home-buying information center www.ghbhomecenter.com • Real estate professional associations(>16)

  22. GH Bank Home Mortgage Lending • Maximum loan amounts: no limit (average loan size Bt700,000) • Loan - to - value ratios:70 – 100% • Loan term or repayment period • 20-30 years (Borrower’s age and term loan must not exceed 70 years) • Mortgage Rates • 1.Floating rate 2. Fixed rate 3.Mixed-rate loan or hybrid mortgage • 4.Special floating rates • Mortgage interest rate ceilings • GH Bank 19% / Commercial Bank 11.25% - 18%

  23. GH Bank Home Mortgage Lending • Valuation fees: Bt1,700 – 2,100 • Origination Fees:0.01% if exceed Bt500,000 • Loan analysis and approval:Credit scoring • Property transfers 2% mortgage registration 1% • Monthly installment payments:MRR+1% • Loan repayment channels :Banks + other pay points e.g. 7-11 • Mortgage amortization : declining principal balance • Prepayment penalties :First year 3%, year 2-3 for 2.5% • Late charges :60-day-past-due charges 13.5% • Mortgage related insurance : fire insurance (compulsory) • mortgage life insurance (voluntary)

  24. Sources : GH Bank and Bank of Thailand (BOT)as of 20 June 2011

  25. GH Bank Mortgage Interest Rates Note : Effective Date June 20, 2011 : MRR is GHB Floating Rates

  26. GH Bank Mortgage Interest Rates Note : Effective Date June 20, 2011

  27. 2 years 0% First Home Mortgage Programme • Total Programme Loan amount:Bt25 billion • For first- time homeowners : no homeownership • Loan limit : not more than Bt3 million • Loan period : not more than 30 Years • Loan Interest rates: 1st – 2nd year equal 0%/year 3rd – 5th year, welfare customers= MRR- 0.5%/year, retail customers = MRR 6th year onward, welfare customers = MRR – 1.00%/year, retail customers = MRR – 0.50%/year • Fees - transfer fee (1% from 2%) no mortgage registration fee (1%) • Programme period: May 9 – December 30,2011(14 June fully booked)

  28. Refinance-In Programme • Total Programme Loan amount: Bt5 billion • Loan interest rates (privilege) : - 1st year = MRR - 5% - 2nd year = MRR - 2 % - From 3rd year onwards = MRR – 1 % • For welfare customers only

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