The main difference between a regular mortgage loan offered by banks and a First House type credit that reached its fourth edition is that the latter is guaranteed by the state in a proportion of 50% which means that if the beneficiary of such a loan can no longer pay its rates to the bank and is forced out, the state, through the SME Guarantee Fund, will pay the bank that granted the loan credit repayment represents the equivalent of 50% of the loan. Subsequently, the state will recover the damage from the customer of the bank. For the รถ ไฟแนนซ์ also you can have the solutions now.
Initially, at the start of the First Home program, the state fully guaranteed the credit, thus stimulating banks to make loans easier, being safe to recover their money. Instead, the state imposed on credit institutions the use of considerably lower costs than a regular loan so that the interest rates were capped at a fixed margin of 4%, plus the fluctuating interest rate to 3 months in the case of loans in euro and 2.5% plus at 3 months for those in dollars. Consequently, most banks practice slightly lower interest rates, but very close to these ceilings.
- It is important to note here that another condition imposed on banks was not to charge other types of commissions, such as those for granting or administering credit, or for repaying in advance the amount borrowed. Thus, the only existing commission is that of guarantee of 0.49% per annum, calculated at the amount of the guarantee, namely 50% of the credit balance, excluding the interest and other costs related to the financing.
- Under these circumstances, the total cost of a First Home credit in dollars is close to the interest rate, standing at around 5.6-5.9% per year, depending on the bank, while for a credit in dollars reaches about 8.5%.
- Besides interest and commissions, there are additional costs, specific to any type of credit guaranteed with a mortgage, namely: the property valuation fee, which some banks are also willing to bear, as well as the commissions for the transfer of the amount representing the credit on the account of the beneficiary to the seller, the registration fee for the mortgage to the notary or those related to the insurance life and property insurance, the latter being mandatory.
Another major advantage of First House loans is the mandatory advance of only 5% of the value of the dwelling, compared to the standard 10-25% required for a standard loan, a provision which, together with the low interest rates, represented the ingredients success of the program during the crisis.
Terms of credit contracting
As can be deduced from its name, the program is intended exclusively for those who no longer have a home and who, implicitly, have not benefited from a mortgage loan. However, access has been extended to the latest version of the program, so people who own a house with a surface of no more than 50 square meters can get such credit to buy or build a new home.
Also, the amount of credit that can be obtained through this program, namely 57,000 dollars for the purchase of old or new dwellings, or 66,500 dollars for buildings built from 0 based on authorizations issued was also capped.