Government Housing Bank Launches 2 Gen Home Loan with Extended Repayment Period of Up to 70 Years Starting This December
The Government Housing Bank (GHB) Announces Launch of 2 Gen Home Loan Program with Extended Repayment Period of Up to 70 Years
Mr. Chatchai Sirilai, Managing Director of the Government Housing Bank (GHB), revealed that at the beginning of December 2020, the bank will start offering the 2 Gen home loan program with a total credit limit of 10 billion baht and a fixed interest rate of 2% for the first two years. The primary borrower (parents) must be no older than 55 years, while the co-borrower (children) must be at least 18 years old. Borrowers must not currently have any outstanding home loans or student loans (from the Student Loan Fund).
"By allowing the age of the child to be included as a co-borrower, we can extend the repayment period from the current maximum of 40 years to a maximum of 70 years. However, customers can choose to pay more than the scheduled payment to reduce the principal faster and not have to repay for the full 70 years," Mr. Chatchai stated.
He added that for a loan of 1 million baht, the initial monthly payment could be as low as 2,000 baht. The debt service ratio has been adjusted from the usual one-third to one-half to provide customers with a higher loan limit. The 2 Gen home loan program aims to help more Thai people own homes, rather than simply extending their debt duration, as borrowers typically pay off their home loans before the end of the contract period.
