What Is a Home Loan Interest Rate?
Understanding Mortgage Interest Before Applying
Home loan interest is the true cost of homeownership
Many borrowers focus only on loan amount
and overlook how interest affects long-term repayment
In Thailand, mortgage interest generally falls into these categories
Types of Home Loan Interest Rates
1) Fixed Rate
A fixed rate applies for a specific period
such as the first 1, 3, or 5 years
Characteristics
Stable monthly payments initially
Easier financial planning
Commonly used as promotional rates
After the fixed period the loan converts to a floating rate
2) Floating Rate
Adjusted according to bank reference rates
such as MRR, MLR, or MOR
Characteristics
Fluctuates with economic conditions
Monthly payments may increase or decrease
Used for the long-term loan period
Reference Rates Used by Banks
MRR (Minimum Retail Rate)
MLR (Minimum Loan Rate)
MOR (Minimum Overdraft Rate)
Actual rates are usually quoted as
MRR – x.xx%
or MLR – x.xx%
Factors Affecting Offered Interest Rates
Banks set interest based on
Employment stability
Income and repayment capacity
Credit bureau history
Down payment ratio
Property value and type
Loan tenure
Lower risk borrowers receive better rates
FAQ (SEO)
Q1: Which interest rate is best?
There is no single best rate—it depends on financial planning
Q2: Are promotional rates really cheaper?
Only during the initial period; floating rates must be reviewed
Q3: Is floating interest risky?
It fluctuates but may be lower at times
Q4: Can interest rates be negotiated?
Yes, especially for strong borrower profiles
