Home Refinancing in Thailand 2026: Is It Worth It? When and How to Calculate
April 11, 2026
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.