Although normal financial institutions generally charge interest for the first 3 years because the interest will be low, the installment amount will be low, but it will increase in the 4th year onwards, causing the installment amount to be higher, for example, in the first 3 years, the interest is 3%, the installment amount is 7,000 baht per month, but it has to increase to 12,000 baht Year 4. Compared to some banks, they will set a buffer of 1 % and calculates the average installment amount on the interest throughout. the contract because the buffer will buffer the amount of the installment to pay for the higher interest if there is a buffer instead of 30 installments -40 years in case of direct payment of each installment Can repay only 23 years before the contract period. Therefore, when interest increases If any financial institution sets a low buffer, it will be affected first.
Therefore, financial institutions with low buffers are current installment balances that do not break the principle. Therefore, the monthly installment amount needs to be increased and customers who are not ready or have a high debt-to-income ratio or DSR run out of money. becomes NPL So, here is the source of the BOT asking to speak to financial institutions. to request special customer care In addition to the process that every organization already has to help customers.
“BOT asks financial institutions to help look after customers who buy houses. Normally, the contract is 30 years long, with 7 years left to extend the contract. in order to support customers,” said the source.
Nattaphon Luepromchai, Mr Executive Vice President Housing Loans Division, Bank of Ayudhya Public Company Limited said “Economic base” although the general markethousing loanQ1 will grow 6.4% to 1.52 billion baht from the first quarter of 2022 at 1.43 billion baht, but compared to the 4th quarter, it is considered a very negative 26.7% and is likely to grow even in lower in the second quarter. From the weight factor of interest rates which have generally increased from the end of last year to today, around 1%
However, every 1% of the interest increase will lead to an increase in installments of up to 9-12%, causing consumers with tight incomes to postpone their purchases. This part of the demand will cause the market not to grow in line with the economic recovery. In addition, rising real estate costs lead to higher house prices, making it harder to buy.
However, interest rates rose recently Overall, there is still relatively little impact on home loan borrowers. due to the monthly installment calculation The bank will add an allowance for interest rate variation (Cushion rate) The bank will add from 0.25-1.00% of the maximum long term interest rate (4th year onwards) The current MRR rate will continue to increase.
Nattaphon said Mr. The bank needs to ask the customer to increase the repayment period only when the additional cushion is much less than the interest rate. and past Customers choose Step-UP installments, which will reduce the principal amount. case when the interest rate increases The original installment may not be enough to pay interest.
For Bank of Ayudhya, the variance is added up to 1% and usually recommends that customers pay the same amount in each installment. Therefore, in the past, the installments that the bank recommended to customers had to cut the principal balance more. compared to other loans that benefit customers
new customer section The effect caused by a 1% increase in interest will increase the installment burden up to 9-12% or make the installment balance remain the same. Loan customers get a lower credit limit. since each loan Amount is one million baht An interest increase of 1% will increase the interest burden by ten thousand baht per year, or approximately 833 baht per month.
Mr Jaray Jianthanakanon Managing Director of TTB Consumer (ttb user) said. Customers buying homes are also affected. Limited impact of rising interest rates Normally, TTB is prepared to extend the period of installment payments to customers and all banks will have a buffer for a moderate interest rate rise.
However, the interest rate has increased significantly. 1.5% per annum Those affected are Customers who have contracted to buy the lowest interest period in the last 2-3 years only. that this group does not affect all individuals and the banking system has already extended terms Because a very long term home loan
“TTB’s portfolio has very little impact on customers. The average installment is 25-30 years, when the interest that has to be paid more for each installment is distributed. Regarding the trend of purchasing power in the second half of the year, it should affect new home loans. Because people are worried about rising interest rates and the BOT’s strict LTV criteria, the second and third homes are making people slow down. But the general picture of real estate is still growing, so we have to look at the customer groups,” said Mr Jaray.
for customer care the bank does not try to increase the installment. because it will affect the ability to pay in installments Which is better to extend the term than to increase the installment which is as long as interest increases Installments can also be cut off from the principle. The bank does not need to increase the installment. There are also measures to help customers. In terms of goals, TTB has lowered some targets. due to market conditions But not too worried about the NPL.
Page 1 Thansachit Newspaper Year 43 Number 3,896 Date 15 – 17 June 2023
