Government Housing Bank’s (GH Bank) first-home zero interest rate home mortgage has been a booming success.       

Woravit Chailimpamontri, G H Bank’s President said that during the first month, applications for the zero interest rate housing loans had already reached the Bank’s BtBt25 billion project loan limit.

“Subsequently, we discovered that about 10 to 20% of the loan applicants did not qualify for the loans,” he said.

As a result, Woravit said about Bt3 billion to Bt5 billion is still available to first-home buyers that wish to apply for these loans that have a zero interest rate for two years. Potential borrowers can still apply until December 30, 2011 or until loan funds are fully allocated.

During the project’s first month, more than 18,583 applicants applied for loans that averaged Bt1.35 million/person. About 45 per cent of the applicants were from Bangkok and surrounding areas and the remaining 55 per cent were disbursed throughout Thailand.

The applicant’s urban/rural ratio, Worawit added were in line with the project’s overall objective of helping people throughout Thailand purchase their first homes.

As of June 14, 2011, about Bt6 billion of the project’s loans have been approved and the Bank is currently accelerating its approval process, so that more loans can be closed as soon as possible.

Woravit added that GH Bank’s innovative first-home project has provided a very effective stimulus to the real estate industry and has created great interest among financial institutions.

In addition to paying zero interest rate in the first two years, first time home buyers also are not required to pay transfer and mortgage fees.

Because GH Bank is the leading home loan lender, other financial institutions have also followed with lower interest rates for home buyers.

GH Bank is maintaining its position as Thailand’s leading housing finance innovator through this project that lowers interest rates for first-time home buyers.