1. 1 Government Housing Bank, Thailand Growth with Stability in Affordable Housing Markets: Primary Mortgage Markets Growth & Prospects Ballobh Kritayanavaj Senior Vice President G H Bank – Thailand Jan. 30, 2011

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3. 3 Housing Completion in Bangkok and Metropolitan Region

4. 4 Housing completions in Bangkok and Metropolitan Region by types

5. 5 Newly - launched Housing Units - Bangkok and Vicinity

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7. 7 New Home Loans in Thailand

8. 8 Market Share of New Home Loans

9. 9 Home Loans Outstanding in Thailand

10. 10 Market Share of Home Loans Outstanding

11. 11 Branches include Headoffice Asset (mil.THB) (Oct) MORMRR Deposit 1 Year GH Bank156708,0657.875%7.25%3.25% Commercial Banks (Averaged) 6,15112,981,188 * 8.0406%8.6281% 2.25 - 3.60% Sources : GH Bank and Bank of Thailand (BOT) as of Dec 2011 * Commercial Banks registered in the country GH Bank VS Commercial Banks

12. 12 Maximum Interest Rates (normal case) Maximum Interest Rate (default) Valuation FeeRefinance Fee Debt collection fee Management Fee GH Bank 19%13.5% 1,700 - 2,800 year 1 = 3% year 2 = 2.5% year 3 = 2% 1,000 Baht/Time 0.1% of loan amount Commercial Banks (Averaged) 12.00 - 15.195% 15 - 18% 2,500 - 5,350 3% of loan agreementNo charge 0.25% of loan amount Sources : GH Bank and Bank of Thailand (BOT) as of Dec 2011 GH Bank VS Commercial Banks

13. 13 Mortgage rates strategy 1.Interest rate 0% (3 – 36 months) - GH Bank 0% for 36 months, year 4 – 7 = MRR, year 8 onwards MRR -0.5 - Commercial banks (6) 0% for 3 -10 months, year 1-3 = MRR minus, year 8 onwards MRR 2. Fixed short term rate (1-3 years) - Commercial banks (4) 1 year = 2.5% - 5.25% - Commercial banks (4) 2 year = 3.75% - 5.50% after that MLR -0.25% to 1.75% - Commercial banks (3) 3 year = 3.45% - 6.25% 3. Special floating rate (1-3 years) - GH Bank year 1-2 = MRR-2%, year 3 = MRR-1% after that MRR-0.5% - Commercial banks (2) 1 year = MLR – 1.75% and MLR - 2.6% - Commercial banks (5) 2 years = MLR - 1.00% to 4.00% - Commercial banks (7) 3 years = MLR – 0.40% to 4% 4. Hybrid rate - Commercial banks (5) fixed year 1 = 1.25% - 2.75% float year 2 = MLR – 1.00 to 2.00

14. 14 Mortgage Market Leader in Thailand 34 - 40% market share Gov. instrument in real estate market revival and economic growth stimulation - Government assisted- mortgage programme for first-time homebuyers - Bann Eur-Arthorn (NHA), Bann Mankong CODI Housing Finance Infrastructure National Credit Bureau (established in 2004, currently with 75 institutional members and 30 million accounts) Real Estate Information Center, www.reic.or.th (2004)www.reic.or.th Housing Knowledge and Education Center GH Bank Housing Journal - Thai (1995) Asia Pacific Housing Journal - English (2007) Homebuyer information center www.ghbhomecenter.com Real estate professional associations (>16) GH Bank Leading Roles

15. 15 Deposit rate 1.00 – 4.58% Reference rate MRR = 7.25% Mortgage rate MRR - ? % (up to selected program) Loan Conditions LTVInterest rateTerm Ordinary Customers 70-80%MRR- ? %30 yr. Welfare Customers 90-100%Ordinary rate - 1.00%30 yr.

16. 16 GH Bank Home Mortgage Lending Maximum loan amounts : no limit (average loan size Bt500,000) Loan - to - value ratios : 70 – 100% Loan term up to 20-30 years (Age of borrowers plus loan term must not exceed 70 years) Mortgage Rates 1. Floating rate = MRR 2. Special floating rates = MRR minus 3. Hybrid mortgage (fixed + floating rate) Mortgage interest rate ceilings GH Bank 19% / Commercial Banks 11.25% - 18%

17. 17 GH Bank Home Mortgage Lending Valuation fees : Bt1,700 – 2,800 Origination Fees : 0.01% if exceed Bt500,000 Loan analysis and approval : Credit scoring Property transfers: 2% mortgage registration: 1% Monthly payment calculation : MRR+1% Loan repayment channels : Banks + pay points e.g. 7-11, Post office JayMart,Pay Point, Tesco Lotus, Advanced Info Service Plc Mortgage amortization : declining principal balance Prepayment penalties : First year at 3%, year 2-3 at 2.5% Late charges : 60-day-past-due charges 13.5% Mortgage related insurance : fire insurance (compulsory) Mortgage life insurance (voluntary)

18. 18 First-Time Home Buyer Mortgage Programme I Total Programme Loan amount : Bt25 billion First- time homebuyers : no homeownership record Purpose : Buying New home, resale home or home construction Loan limit : not more than Bt3 million Loan period : not more than 30 Years Loan interest rates - 1 st – 2 nd year = 0% - 3 rd – 5 th year, welfare customers = MRR - 0.5% ordinary customers = MRR (current = 7.25%) - 6 th year, welfare customers = MRR – 1.00% ordinary customers = MRR – 0.50% Fees : mortgage registration fee (1% Exempt), transaction fee (1% from 2%) Program period : 9 May – 30 Dec. 2011

19. 19 Total Programme Loan amount : Bt20 Billion First- time homebuyers - no homeownership record For : Buying New home, resale home or home construction Loan limit : not more than Bt1 million Loan period : not more than 30 Years Loan interest rates 1 st – 3 rd year = 0% 4 th Onwards = MRR-0.5% (Current MRR = 7.25%) Refinance : not allowed before 7 years Program period : 11 Oct. 2011 – 30 Sept. 2012 First-Time Home Buyer Mortgage Programme II

20. 20 Special Five-Point Flood Loan -- Mitigation Programme 1. Waiving monthly loan payments for six monthly program and reducing interest payments to zero per cent during the same period,for home owner with damaged homes. For those with several damaged homes,an additional six months of payments will be waived. 2. Borrowers disabled or lost lives during floods will have interest payments reduced to 0.01 per cent per year for entire loan terms. 3. If borrowers home became uninhabitable because of flooding,their loans would be reduced to land-values only. 4. Any new or existing borrowers that had their homes damaged by floods could apply for special home-repair loans (not exceeding Bt 1 million) at two per cent interest for five years. 5. The Bank will provide loans not exceeding Bt 100,000 per person (no collateral needed) to renovate damaged home at four per cent fixed interest rate for five years.

21. 21 Mortgage Market : Growth & Prospective Government housing policy MOF + BOT Regulations Economic growth Employment and income growth Bank s strategies and competitive advantages Financial market Housing market situation (RE cycles)

22. 22 Housing Ladder Extremely High (detached houses) Upper 20 Million THB 167,300 Very High (detached houses) 10 Million THB 83,700 High (detached houses / condominiums) 5 Million THB 41,900 Medium High (condominium / townhouses / detached houses) 3 Million THB 25,100 Medium (condominiums / town Houses / detached houses) 2 Million THB 14,800 Medium Low (condominiums / cheap townhouses / duplexes / one-storey detached houses) 1 Million THB 8,400 Low (duplexes / small condominiums) 500,000 THB 4,200 Very Low (squatters / slums / rental housing / apartments) 1 2 3 4 5 6 7 8 House Price Level Monthly Payment (Baht) Remark : Monthly payment calculation interest rate 7%,Term 20 years, Loan to Value ratio 85%

23. 23 Growth with Stability in Affordable Housing Market (THAILAND) Ministry of Finance Ministry of Social Development & Human Security Ministries Ministry of Interior Govt. Agencies Bank of Thailand Land Department Dept. Public Works and Town & Country Planning Special Financial Institutions National Housing Authority (NHA) Community Organizations Development Institute (CODI) (Regulators, Financiers, Developers, Land registrations) Private Sector Professional Associations Training & Education Information DevelopersValuers RE Brokers Community/ Property Managers Com. Banks Financial Company Other Financial Institutions GH Bank GSB SMC UniversitiesTraining Centers REICGH BankCom. BanksOthers www.rei c.or.th www.ghbhome center.com Journals (Thai + Eng) Websites Websites Magazines (e.g. Home Buyer Guide etc.) Ballobh K. 20 Jan 2012 CU - TU RU - ABAC Thai Condominium Assoc. Housing Business Assoc. Thai Real Estate Assoc. Thai Valuers Assoc. Valuers Assoc. of Thailand Thai RE Brokers Assoc. Property Mangt. Assoc. AREA- TRES - Associati ons Housing Finance Assoc. Financiers

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