KBank to loan B66bn to home purchasers

Total mortgages are expected to rise 6-7%

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Kasikornbank (KBank), the country's second-largest lender by assets, aims for 66 billion baht in new home loans this year, of which 16 billion baht will be lent in the three months to March.

Home loans overall will continue to post high growth in the first quarter ahead of the Bank of Thailand's enforcement of rules aimed at supervising home loans and building long-term economic stability, said executive vice-president Surat Leelataviwat. The new rules take effect in April.

To attract homebuyers, the bank is continuing its two mortgage campaigns: the K-Home Loan Refinance campaign featuring a free mortgage registration fee of up to 200,000 baht and a special interest rate; and the K-Home for Cash campaign offering a special interest rate of one percentage point minus the minimum retail rate (MRR) for the first two years, and 0.5 percentage points minus MRR thereafter, along with a free appraisal fee worth 3,000 baht.

KBank president Kattiya Indaravijaya said recently that the bank's total mortgages would rise 6-7% in 2019, slowing from solid growth in 2018, due to lower condo demand from Chinese buyers and the central bank's new housing loan rules, which require higher down payments for second and subsequent mortgages.

The central bank will impose a more stringent required minimum down payment for third and subsequent mortgages of 30% of home price, and the minimum requirement for a second housing loan in a range of 10-20%, depending on how long a borrower has made payments on the first one.

Those who purchase a home at a price below 10 million baht and seek a second home loan are required to make at least a 10% down payment in the event that they have made payments on the first mortgage for three years or longer.

A minimum down payment of 20% is required if borrowers have serviced the first mortgage for less than three years. For those who seek a second mortgage to fund the purchase of a home priced at 10 million baht or higher, a minimum 20% down payment is required.

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