Refinance or Retention: Which Helps You Save More?

รีไฟแนนซ์ หรือ ลดดอกเบี้ย

Refinance or Retention: Which Helps You Save More?

Which is better: Refinance or Retention? You’ve been paying your home or condo mortgage for a while and have encountered high interest rates. How can you reduce your interest payments? This question has an answer, as banks understand that many borrowers don’t want to deal with expensive interest rates. There are two methods that can help you reduce your home loan interest: refinance and retention.

Refinance or Retention

Refinance means moving your mortgage from your current bank to a new one. On the other hand, interest rate reduction involves requesting a lower interest rate from your current bank without switching to a new one. The similarity between refinancing and retention is that they both result in a reduction of your home loan interest. When the interest rate goes down, your monthly payments will decrease accordingly.

When Can You Refinance or Retention?

You can refinance or reduce the interest rate when you have been making mortgage payments for three or more years and have a good payment history with no defaults. Now, let’s compare refinance and interest rate reduction in terms of interest rates and the pros and cons of each method.


  • Refinancing your home involves changing your mortgage from your current bank to a new one, typically by applying for a new loan with a lower interest rate. Here are some key points:
  • You can get a lower interest rate than your current bank offers in the initial period.
  • It can be more challenging due to the need to submit new documents and undergo a new financial credit check.
  • You can change the debt structure and extend the repayment period.


  • Retention means requesting a lower interest rate from your current bank while keeping your existing mortgage. Here’s what you need to know:
  • You can lower your home loan’s interest rate without changing your mortgage.
  • It typically involves lower costs compared to refinancing.
  • There’s no need to submit new documents or undergo a new financial credit check.
  • This option is suitable for those who want a convenient process or have a less-than-ideal financial credit history.

Calculating the Amount You’ll Save

รีไฟแนนซ์ หรือ ลดดอกเบี้ย

When comparing refinance and retention, we find that refinancing has significant advantages in the initial period due to the lower interest rate. However, interest rate reduction emphasizes convenience and lower costs.

So, which option is more cost-effective? It depends on your financial situation and the difference in interest rates you can achieve in each case.

Source: GH Bank Blog

Did you know that you can refinance your home even if you’re living abroad?

If you’re paying a mortgage with a bank in Thailand before moving abroad or working in another country, you can still apply for refinancing through the “สินเชื่อเพื่อคนไทยในต่างประเทศ ” program offered by the Government Housing Bank (GH Bank). This program allows Thai citizens living abroad to apply for loans without returning to Thailand. If you have a mortgage with a bank other than GH Bank, you can inquire about the details here.

For more information, contact

Line: @sungateway Click here: Link

Facebook Page: โครงการบ้านและสินเชื่อ เพื่อคนไทยในต่างประเทศ

Facebook Page: สินเชื่อ ธอส. เพื่อคนไทยในต่างประเทศ