Post by mangomoney on Dec 6, 2016 11:50:30 GMT 7
GSB reverse mortgage due soon
Move to strengthen retirement safety net
The Government Savings Bank (GSB) is set to offer its first batch of reverse mortgages -- home equity conversion housing loans for the elderly -- worth up to 5 billion baht early next year, says its head.
Homeowners who qualify for the bank's reverse mortgage will have to be aged between 65 and 85, GSB president Chatchai Payuhanaveechai said.
....
The loan is capped at 70% of the home value, while interest rate will be based on minimum lending rate. Reverse mortgage is a part of the government's plan to strengthen the retirement safety net as Thailand becomes an ageing society.
The Fiscal Policy Office estimates that the percentage of Thais aged 60 and over is expected to increase from 14% of the population now to 17.5% in 2020, 21.2% in 2025 and 25.2% in 2030.
Reverse mortgages allow elderly homeowners to convert their home equity into cash with no repayment of the loan until the borrower dies or the home is sold to help them cover monthly living expenses and healthcare costs.
Lenders of reverse mortgages will make monthly payments to the borrowers, who are still able to live in their homes until they pass away or the loans are fully taken out.
more...
www.bangkokpost.com/business/news/1151797/gsb-reverse-mortgage-due-soon
Move to strengthen retirement safety net
The Government Savings Bank (GSB) is set to offer its first batch of reverse mortgages -- home equity conversion housing loans for the elderly -- worth up to 5 billion baht early next year, says its head.
Homeowners who qualify for the bank's reverse mortgage will have to be aged between 65 and 85, GSB president Chatchai Payuhanaveechai said.
....
The loan is capped at 70% of the home value, while interest rate will be based on minimum lending rate. Reverse mortgage is a part of the government's plan to strengthen the retirement safety net as Thailand becomes an ageing society.
The Fiscal Policy Office estimates that the percentage of Thais aged 60 and over is expected to increase from 14% of the population now to 17.5% in 2020, 21.2% in 2025 and 25.2% in 2030.
Reverse mortgages allow elderly homeowners to convert their home equity into cash with no repayment of the loan until the borrower dies or the home is sold to help them cover monthly living expenses and healthcare costs.
Lenders of reverse mortgages will make monthly payments to the borrowers, who are still able to live in their homes until they pass away or the loans are fully taken out.
more...
www.bangkokpost.com/business/news/1151797/gsb-reverse-mortgage-due-soon
