One of the major concerns for homeowners is the issue of rising interest rates, especially for those who have been repaying their home loans for three years. After this period, borrowers are often switched to a floating interest rate, which can fluctuate based on each bank's announcements. If the reference interest rate increases, it can lead to a higher interest burden, resulting in a smaller portion of the monthly payment going towards the principal. This may extend the loan repayment period and affect long-term financial management.

A popular option that borrowers use to reduce their interest burden is refinancing and retention. However, many home loan customers lack knowledge and understanding of the differences between these two approaches and which option will help them pay off their mortgage faster while maximizing benefits for each borrower. TTB Home Loan aims to provide details on each option for consideration.

Starting with “Refinance”, this involves applying for a new home or condo loan with a different bank that offers better repayment terms, such as a lower interest rate. This helps reduce the monthly payment for borrowers and allows them to pay off their mortgage more quickly. Some borrowers may even reduce their monthly burden and have more disposable income or request an increased loan amount. Refinancing requires preparing documents for a new loan application and incurs fees similar to those of a new contract, with approval times comparable to applying for a new loan. However, it is a popular choice for reducing interest rates.

On the other hand, “Retention” involves requesting a reduction in the interest rate of the existing loan with the current bank. This process does not require the time-consuming submission of new loan documents; borrowers simply inform their existing bank that they wish to lower their home loan interest rate. The bank can use the original documents submitted by the borrower, resulting in a faster approval process compared to refinancing. However, if the payment history is poor, the retention request may be denied, or if approved, the interest rate offered may be lower than that for borrowers with a good payment history. Although the interest rate for retention may not decrease significantly, it will still be lower than the floating rate applied in the fourth year.

So, when asked whether to choose “Refinance” or “Retention,” the answer depends on the borrower's objectives. For those looking to lower their payments or save significantly on interest to pay off their home quickly, and who are prepared to gather documents and go through the application process with a new bank, refinancing is the suitable option. Conversely, for those who prefer to avoid the hassle of preparing documents and managing additional expenses, and where the new lower interest rate is acceptable, retention may be the better choice.

For those seeking a new loan source for home refinancing to improve their financial life in every aspect, TTB Home Refinance is ready to meet the needs of homeowners, helping them pay lower interest and own their homes faster. Currently, TTB offers special interest promotions specifically for those looking to refinance their homes.

ü First-year fixed interest rate of only 2.25% per annum or a fixed interest rate of 3.39% for the first three years.

ü Free! Registration fees, property appraisal fees, and fire insurance premiums.

ü Maximum repayment period of up to 35 years.

ü Maximum approved loan amount of 100% or 50 million baht.

If customers need additional loan amounts to enhance liquidity or consolidate high-interest debts into a single payment with TTB, they can choose to refinance their home while also requesting an additional loan amount through the home equity loan, topping up, and receiving a special fixed interest offer of 5.45% for the first three years (down from the usual 6.18%).

TTB encourages borrowers to decide on the most suitable method for reducing their home loan interest to help them pay off their mortgage quickly, own their homes sooner, and promote responsible spending and manageable repayments to create a better financial life.

For more information on TTB refinancing loans, please visit https://www.ttbbank.com/link/home-refinance-pr.

Borrow only what is necessary and repay within your means: • TTB home refinancing loan with a true interest rate throughout the contract period of 4.93% - 5.36% per annum • Home equity loan with a true interest rate throughout the contract period of 6.57% - 10.23% per annum • MRR interest rate = 7.83% per annum as of October 3, 2023 • Floating interest rates may change upwards or downwards • Loan application and approval conditions are subject to the bank's criteria.