A debt management method that anyone can utilize is refinance loans. The main goal is to manage debt effectively and maximize benefits. Of course, each refinancing of a home incurs additional operational costs. TerraBKK Research has compiled 15 refinance loans for 2017 from 15 financial institutions, including interest rates, promotions, etc., for you to study before deciding on a refinance loan.

Maximum Interest Rates and Approval Amounts


          In a normal case, the maximum interest rate averages between 11-28% per year. The top three institutions with the lowest interest rates are Thai Military Bank at 11.275% per year, Siam Commercial Bank at 11.37% per year, and Bangkok Bank at 12.00% per year. TISCO has the highest interest rate in the group at 28% per year.
          In the case of defaulting on payments, the maximum interest rate averages between 15-28% per year, with the lowest rates being 15% per year from Bangkok Bank, Kasikorn Bank, Siam Commercial Bank, Standard Chartered (Thailand), and CIMB Thai. TISCO and Kiatnakin have the highest rates in the group at 28% per year.
          The average maximum loan amount for refinance loans is 85-105% of the appraised value or sale price. Government Savings Bank is the strictest in considering loan amounts, approving only 85% of the appraised value or sale price.

           Besides the interest rates and approved loan amounts for refinance loans, don't forget to consider other expenses from this refinancing. For example, expenses to the original bank, such as statement fees and payment history fees, and expenses to the new bank, such as loan fees, collateral appraisal fees (usually calculated as a percentage of the loan amount), and fire insurance fees. Additionally, there are expenses to the land department, such as mortgage registration fees and stamp duty.

           Some banks have seized this opportunity to create promotions to attract customers, not just offering fee waivers but also low-interest promotions, etc. TerraBKK Research has compiled refinance loan promotions for 2017. Choose the service that suits your borrowing style as follows:

 Low Interest Rate Promotions
           • Kasikorn Bank Home Loan Refinance: Special interest rate of 0% for 3 months.
           • Krungsri Home Loan Refinance: 0.5% per year for 1 year, free mortgage registration fee, free collateral appraisal fee.
           • KTB Refinance Home Loan: Year 1 = 3.25%, thereafter MLR-0.25% (MLR=6.275% per year).
           •TMB Home Loan Refinance: Fixed interest rate of 4.25% per year for the first 3 years or 3.75% per year for the first 3 years when applying for 3 additional products, receiving free mortgage registration/fire insurance/appraisal fees.
           • Mortgage Redemption Loan from Other Financial Institutions: Fixed interest rate of 2.90% per year for up to 2 years, free loan application fee, bank covers 50% of mortgage registration fee.
           • Refinance Loan: Average interest rate starting at 3.77% per year for the first 3 years.
           • Home Loan for You: Special interest rate Year 1: MRR-4.35%, Year 2: MRR-2.35%, Year 3: MRR-2.35%, remaining period MRR-1.35%.
           • Refinance Loan: Fixed interest rate of 3.45% for 3 years.
           • Special Project Home Loan: Fixed interest rate for 10 years.
           • UOB Home Loan Refinance: Average interest rate of 3.33% for 3 years.

 Fee Waiver Promotions
           • Refinance Loan_Bangkok Bank: Free loan management fee.
           • My Mortgage Home Loan Refinance_Standard Chartered (Thailand): Free loan management fee.

 High Loan Amount Promotions
           • Home Loan for Redemption from Financial Institutions_Kiatnakin: Approval up to 105% of the appraised value, joint borrowing allowed up to 4 people (must be family members).

            Additionally, there is SCB Refinance and Housing Loan for Redemption_Government Savings Bank as well.

            Finally, TerraBKK recommends that anyone interested in refinancing should first assess whether they meet the bank's criteria. If you have a history of missed payments, high debt burdens, or are still within the first 3 years of loan repayment, you are likely to be denied refinancing approval.

            TerraBKK Research concludes the article with a table of 15 refinance loans for 2017 from 15 financial institutions, summarizing the information as of July 2017 as follows --- TerraBKK

 

Note: The maximum interest rates for normal cases and for defaults are preliminary data from the Bank of Thailand. Please verify details with the respective banks.

Article by: TerraBKK Investment Tips

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