Refinancing a house: Which bank should you choose?
Last updated: 2 Aug 2025
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House refinancing involves entering into a home loan agreement with another bank after the expiration of the existing loan agreement. Applicants can choose which bank offers the most attractive offer. Typically, refinancing or interest rate reductions are only offered after three years of mortgage payments or according to the terms and conditions specified in the loan agreement. Therefore, refinancing is highly sought after as it reduces interest rates and the burden of repayment.
Another option is to reduce the burden of interest rates: Retention, or requesting a home loan interest reduction from the same bank. The bank will review the borrower's past repayment history. The advantage is that home loan borrowers can continue with their current bank without the burden of preparing new documents for refinancing with a new bank. This allows for a shorter approval period for a home loan reduction.
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Compiled information on home loan refinancing interest rates, updated for April 2024, from various banks, is presented to help you see which bank offers the best home loan refinancing options. Which bank offers the lowest, most affordable home loan refinancing interest rates? What are the conditions for requesting a home loan reduction? This information is essential for home and condo loan borrowers considering refinancing or retention, along with a home loan refinancing interest rate calculator that will simplify your decision-making process.
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8 Steps to Refinancing and Reducing Your Home Loan Interest Rate
1. Contact your current bank to request a home loan summary. The costs for this step depend on the bank; some banks may have no fees.
2. After obtaining the required loan amount, submit the required documents to the new bank for refinancing. (If you believe a retention may be more cost-effective, you can apply to the current bank.)
3. Similar to your initial home loan application, an officer will need to assess the home or property you wish to refinance.
4. Wait for the bank's approval.
5. If the loan is approved, contact your current bank to schedule a redemption date at the Land Office. Submit the documents to redeem the home from the previous loan. The payment amount will be the principal plus interest. (Until the redemption date)
6. Contact the new bank you wish to refinance to sign a new loan agreement. Schedule a date for signing the contract and transferring the mortgaged house. Be sure to schedule both appointments on the same day to repay the debt.
7. Go to the Land Office in the area where the property is located to complete the transfer of ownership, accompanied by officials from both banks.
8. Finally, submit the title deed obtained from the Land Office to the new bank. This completes the process.
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Advantages of Home Refinancing: Request a Home Loan Interest Reduction
- Reduced Interest Charges. Lower interest rates are the most obvious benefit if the new bank's home loan interest rate is lower than the old bank's. For example, if the original contract had an interest rate of 6.5%, the new contract has an interest rate of only 3.5%. When interest rates decrease, the monthly interest payment and the total interest on the contract will decrease accordingly.
- Increased Principal Deductions: When the interest burden decreases, more of the monthly home loan payment will be used to reduce the remaining principal. The interest payment for the following month will also be reduced. For example, if a home loan applicant pays 20,000 baht per month, under the original contract, 12,000 baht in interest is deducted, leaving only 8,000 baht in principal. However, with the new contract, 7,000 baht in interest is deducted, resulting in a total of 13,000 baht in principal.
- Lower home loan payments: The new contract will be based on the bank's assessment and the loan applicant's agreement. This may result in lower home loan payments under the new contract due to lower interest rates or extended contract terms. For example, if the old contract had monthly payments of 20,000 baht, the monthly payments will be reduced to 25 years, while the new contract will be extended to 30 years, leaving only 15,000 baht per month.
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Read more details at DD Property: https://bit.ly/3w70dKO
Another option is to reduce the burden of interest rates: Retention, or requesting a home loan interest reduction from the same bank. The bank will review the borrower's past repayment history. The advantage is that home loan borrowers can continue with their current bank without the burden of preparing new documents for refinancing with a new bank. This allows for a shorter approval period for a home loan reduction.
___________________________________________
Compiled information on home loan refinancing interest rates, updated for April 2024, from various banks, is presented to help you see which bank offers the best home loan refinancing options. Which bank offers the lowest, most affordable home loan refinancing interest rates? What are the conditions for requesting a home loan reduction? This information is essential for home and condo loan borrowers considering refinancing or retention, along with a home loan refinancing interest rate calculator that will simplify your decision-making process.
___________________________________________
8 Steps to Refinancing and Reducing Your Home Loan Interest Rate
1. Contact your current bank to request a home loan summary. The costs for this step depend on the bank; some banks may have no fees.
2. After obtaining the required loan amount, submit the required documents to the new bank for refinancing. (If you believe a retention may be more cost-effective, you can apply to the current bank.)
3. Similar to your initial home loan application, an officer will need to assess the home or property you wish to refinance.
4. Wait for the bank's approval.
5. If the loan is approved, contact your current bank to schedule a redemption date at the Land Office. Submit the documents to redeem the home from the previous loan. The payment amount will be the principal plus interest. (Until the redemption date)
6. Contact the new bank you wish to refinance to sign a new loan agreement. Schedule a date for signing the contract and transferring the mortgaged house. Be sure to schedule both appointments on the same day to repay the debt.
7. Go to the Land Office in the area where the property is located to complete the transfer of ownership, accompanied by officials from both banks.
8. Finally, submit the title deed obtained from the Land Office to the new bank. This completes the process.
___________________________________________
Advantages of Home Refinancing: Request a Home Loan Interest Reduction
- Reduced Interest Charges. Lower interest rates are the most obvious benefit if the new bank's home loan interest rate is lower than the old bank's. For example, if the original contract had an interest rate of 6.5%, the new contract has an interest rate of only 3.5%. When interest rates decrease, the monthly interest payment and the total interest on the contract will decrease accordingly.
- Increased Principal Deductions: When the interest burden decreases, more of the monthly home loan payment will be used to reduce the remaining principal. The interest payment for the following month will also be reduced. For example, if a home loan applicant pays 20,000 baht per month, under the original contract, 12,000 baht in interest is deducted, leaving only 8,000 baht in principal. However, with the new contract, 7,000 baht in interest is deducted, resulting in a total of 13,000 baht in principal.
- Lower home loan payments: The new contract will be based on the bank's assessment and the loan applicant's agreement. This may result in lower home loan payments under the new contract due to lower interest rates or extended contract terms. For example, if the old contract had monthly payments of 20,000 baht, the monthly payments will be reduced to 25 years, while the new contract will be extended to 30 years, leaving only 15,000 baht per month.
___________________________________________
Read more details at DD Property: https://bit.ly/3w70dKO
