Is it true that you can borrow money to buy a house and pay cash in advance for 3 years without having to pay a fine?

You can consult about loans every day, Monday-Sunday, 8:30-20:00 hrs. Thai time. Is it true that you
can borrow money to buy a house and pay cash in advance for 3 years without having to pay a fine?
This is another case where many home buyers are still wondering and unsure. In the case of taking out a home loan and paying it off before 3 years, will a fine be charged?

If you use your own cash to pay off the entire amount before the due date, there will be no penalty even if you pay off the account before 3 years, but you should check the terms and conditions of the contract with each bank carefully. As for paying off or redeeming by refinancing to another bank, you will have to pay a penalty, which is usually 3%. Some banks calculate it from the remaining balance at that time, while some banks calculate it from the loan amount, according to the contract

However, the criteria announced by the Bank of Thailand will be based on the following penalties:

In case the customer chooses to make a contract for a floating interest rate loan and redeems before the due date, the bank will charge a penalty only in the case of refinancing to another bank.

(Announcement of the Bank of Thailand No. SorSor.80/2008 on the criteria for practice regarding interest, discounts, service fees, and fines for commercial banks)

In the case where customers make a contract with a fixed interest rate loan, the announcement only states that:

In the case where a customer makes a fixed interest rate loan contract and redeems before the contract expires, which is a contract that calculates a fixed interest rate that changes every 3 years, 5 years, in order to use services with another bank (refinance) or in the case of requesting

to change to a floating interest rate before the contract expires, the bank can charge a penalty.

However, some banks may impose other conditions, especially in cases where customers choose a fixed interest rate or a special interest rate, such as prohibiting redemption before the contract's maturity date in all cases, or some banks prohibiting payments exceeding (equal to) the installment

And one thing that is worth noting is that if it is a special interest rate loan contract or a low interest rate promotion type. The fines will be more expensive or the conditions will be stricter, for example, instead of the redemption period being set at 3 years, I will be 4 years.

etc.

This is about the rules and regulations of the bank regarding interest, discounts, service fees and various fines

It is clear because it must be based on the announcement of the Bank of Thailand as the main principle and must be specified in the contract, which we or the borrower must read. Please make the contract detailed so that you don't make up your own mind and it may cause trouble later.

Before we go, let's take a look at the housing loan fees (that must be reported to the Bank of Thailand). What are they? Maximum interest rate in normal cases

Maximum interest rate in case of default

Survey and assessment fees for collateral by internal assessors

External assessor survey and assessment of collateral

Expenses in case of early loan repayment in order to use services of other financial institutions

Debt collection costs

 
You can consult about loans every day, Monday-Sunday, 8:30-20:00, Thai time.