Home Refinancing in Thailand 2026: Is It Worth It? When and How to Calculate

What Is Home Refinancing?

Refinancing means transferring your home loan from your current bank to a new bank offering lower interest rates, reducing total interest paid over the loan term.

When Should You Refinance?

After 3+ years of payments — Most contracts lock you in for 3 years. Early exit incurs a 2-3% penalty on remaining balance.
Current rate is 1%+ above market — If you're paying MRR-1% (≈6.5%) but another bank offers MRR-2.5% (≈5%), it's worth switching.
High remaining balance — The larger your outstanding loan, the more you save.

How to Calculate If It's Worth It

Example: 2,000,000 THB remaining, 20 years left

Item	Current Bank (6.5%)	New Bank (5.0%)
Monthly payment	14,920 THB	13,200 THB
Total interest (20 yrs)	1,580,800 THB	1,168,000 THB
Total savings	412,800 THB

Refinancing Costs

Mortgage registration fee: 1% of loan = 20,000 THB
Property appraisal: 3,000-5,000 THB
Stamp duty: 0.05% ≈ 1,000 THB
Fire insurance (new): 2,000-5,000 THB
Total costs: ≈ 26,000-31,000 THB

Net savings: 412,800 - 31,000 = 381,800 THB → Very worth it!

Documents Required

ID card and house registration copies
Last 6 months' salary slips or income certificate
6-month bank statements
Original loan contract and payment schedule
Land title deed copy
Last 12 months' payment receipts (no missed payments)

Key Considerations

Prepayment penalty — Check your original contract for early exit fees
Teaser rates — Some banks offer low rates for 1-2 years then spike. Look at the average rate over the full term.
Age limit — Banks typically require age + loan term ≤ 65-70 years
Not worth it for small balances — If remaining balance is under 500,000 THB, costs may outweigh savings

Best Refinancing Rates (Early 2026)

Bank	Years 1-3 Rate	After
Kasikorn Bank	3.25-3.50%	MRR-1.75%
Krungthai Bank	2.99-3.25%	MRR-1.50%
Government Savings Bank	3.00%	MRR-1.25%
SCB	3.19-3.44%	MRR-1.75%

*Rates subject to change. Please verify directly with banks.