Siam Commercial Bank Is Not Yet Ready To Decrease Its Mortgage Loan Rates
Siam Commercial Bank is yet not ready to decrease its mortgage loan rates in spite of continuous decrease in interest rates.
It has recently launched a new bill payment service. By which all sort of monthly payments can be done directly from credit card and no extra document is needed.
As per the executive vice-president of SCB, they consider that the mortgage rates being availed to the consumers at present are already quite low, so there is no chance of decreasing them further. The Bank is availing fixed rates of 3% and 5% for the initial 5 years of mortgage loans to its customers. He further added that to meet the present circumstances they are already decreasing their interest rates with respect to the decreasing demand.
It’s been observed that nowadays most of the borrowers prefer to have floating rate packages instead of fixed rate packages. This is so because the floating rate packages give them the benefit of constantly decreasing interest rates. In an observation it is revealed that just 70% of loan applications in SCB are for fixed rate loan packages, which used to be 80% in 2008.
Experts believe that as the leading authorities are trying to come out of the economic recession market rates will decrease further, as a result most of the local banks will also reduce their deposit and key lending rates in the coming weeks.
The demand for housing loans is decreasing because of constantly slowing financial system and poor housing market conditions.
SCB has made its target to get at least 55 billion baht of fresh loans in 2009, which will show a development of around 20-25% on its existing mortgage portfolio.
SCB has although constricted its lending standards because of the continuously slowing economy.
It has recently launched a new bill payment service. By which all sort of monthly payments can be done directly from credit card and no extra document is needed.
As per the executive vice-president of SCB, they consider that the mortgage rates being availed to the consumers at present are already quite low, so there is no chance of decreasing them further. The Bank is availing fixed rates of 3% and 5% for the initial 5 years of mortgage loans to its customers. He further added that to meet the present circumstances they are already decreasing their interest rates with respect to the decreasing demand.
It’s been observed that nowadays most of the borrowers prefer to have floating rate packages instead of fixed rate packages. This is so because the floating rate packages give them the benefit of constantly decreasing interest rates. In an observation it is revealed that just 70% of loan applications in SCB are for fixed rate loan packages, which used to be 80% in 2008.
Experts believe that as the leading authorities are trying to come out of the economic recession market rates will decrease further, as a result most of the local banks will also reduce their deposit and key lending rates in the coming weeks.
The demand for housing loans is decreasing because of constantly slowing financial system and poor housing market conditions.
SCB has made its target to get at least 55 billion baht of fresh loans in 2009, which will show a development of around 20-25% on its existing mortgage portfolio.
SCB has although constricted its lending standards because of the continuously slowing economy.
Labels: housing loans, martgage rates, Siam commercial Bank
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