Refinancing means closing an existing home loan and borrowing from a new lender. Retention means negotiating new terms with the current lender. Either may change borrowing costs or payments, but compare total repayments and contractual costs. The Bank of Thailand warns that an early repayment fee can make refinancing uneconomical; current measures waive the penalty for refinancing a home loan during the first three years.
The embedded video discusses debt management generally; it does not provide an offer or rate from any bank. This article compares offers using general principles and information from the Bank of Thailand.
Gather Information Before Requesting Offers
- Outstanding principal, payoff amount, and the date a promotional interest rate ends.
- Interest rates for each period after the promotion, not just the first year.
- Monthly payments and remaining installments, including costs due at transfer.
- Collateral valuation, mortgage-registration fees, insurance, and any required products.
- Any early-refinancing penalty under the existing agreement.
How to Compare Whether It Is Worthwhile
- Get written retention and refinancing offers that show the rate after any promotion ends.
- Compare total payments over the same period, such as the first three years, including all fees.
- Subtract upfront costs from the interest saved to estimate how long it may take to break even.
- Compare the number of installments and the remaining principal after the same period; extending the term can increase the total paid.
If the savings come only from extending the repayment term, consider both today’s payment and total interest over the full loan. Confirm the payoff amount directly with the bank before deciding. Read next about making extra mortgage-principal payments and calculating DSR before taking on more debt.
Sources
- Bank of Thailand: Refinancing and debt-consolidation measures
- Bank of Thailand: Compare home-loan fees
- Bank of Thailand: Sustainable debt measures and early repayment fees
Sources checked and article updated October 16, 2026. Actual terms depend on the contract and lender’s offer. Calculate a break-even point from the written quote and actual payoff amount. The video does not discuss home refinancing and is not used as evidence for this article.