Thailand Mortgage Refinance Calculator

Outcome at each new rate you might be offered

Thai mortgages almost always start with a low promotional rate for the first one to three years, then revert to a considerably higher standard rate. Refinancing to a new bank at the point the promotion ends is a normal and widely used move here, not an unusual one — and the saving over the remaining term is often substantial.

The question worth answering before you commit is the break-even: refinancing carries real costs, and this calculator shows how many months of saving it takes to recover them.

The comparison. The calculator works out the payment on your outstanding balance at your current rate over the remaining term, then the payment at the new rate over the new term, and compares total interest for each.

Break-even is the refinancing cost divided by the monthly saving. If refinancing costs 35,000 baht and saves 4,000 a month, you recover the cost in 9 months. Anything beyond that is genuine saving. If you might sell the property before break-even, refinancing is not worth it.

What refinancing actually costs. The largest item is the new mortgage registration fee, 1% of the loan amount, paid at the Land Office. Add a property valuation fee, stamp duty, and the new bank’s own processing charges. Some banks absorb part of this to win the business, so it is worth asking.

Watch for the early repayment penalty. Thai home loans commonly carry a penalty for settling within the first three years, typically around 2-3% of the outstanding balance. Refinancing inside that window usually wipes out the benefit. Check your contract for the exact date the penalty ends — the sensible move is to refinance shortly after it does, which often coincides with the promotional rate expiring anyway.

Extending the term is a trap worth naming. A longer new term produces a lower monthly payment, which looks like a bigger saving, but you pay interest for more years and the total cost rises. Compare the total interest figures above, not just the monthly payment. If your aim is to reduce what the loan costs overall, keep the remaining term the same or shorten it.

Renegotiating with your existing bank first is worth a try. Asking for a rate reduction — sometimes called retention — costs far less than a full refinance because there is no new mortgage registration fee. Banks often agree rather than lose the loan. Get a written offer from another bank first; it makes the conversation much shorter.