The 1 Thing People Forget with Home Loans
In a recent survey we asked a large sample of our Thai customers, “Do you think you can negotiate with the Bank for a home loan?” 96% of Thais responded “No.” The detailed follow up showed that most people believe they cannot negotiate with a bank on interest rates or fees and that what is quoted is what is given.
Many times with banking products people forget that they have leverage, and that the bank wants to win the as a customer.
Our advice to you is: Do not forget to negotiate. Thailand has over 30 major banks. They are all in competition with each other for customers. Banks are just like any other business: They are selling a product and service – they sell money. The money they sell has a price, which we refer to as the interest rate and other fees.
You have more leverage than you think, and even if the bank is constrained by prevailing nationwide interest rates, they often have some small room to budge. Remember, reducing your interest rate by just 0.2% will save you over 300,000 THB over the course of your loan.
Don’t be afraid to negotiate and pay special attention to the 3 key essentials that Masii.com points out: the APR or annual percentage rate (different from the interest rate because it includes fees and other costs), the duration of the loan, and things like exit fees.
Good luck in your journey, and Masii.com experts are here to help you every step of the way. Just fill out our form and a professional will be in touch with you shortly.