When Should You Move Your Home Loan to Another Bank?
A practical guide to reviewing your home loan when your fixed-rate period ends
If your home loan's fixed-rate period is coming to an end, it may be a good time to review whether your current loan still works for you. But moving your home loan to another bank is not automatically the best choice. The key is to compare the overall cost of staying with your current bank versus switching to another lender.
What Happens When Your Home Loan Fixed Rate Ends?
Many home loan packages begin with a fixed interest rate for a specified period, such as one, two or three years. Once that period expires, the loan may move to a floating-rate structure according to the lender's terms.
Unlike a fixed rate, a floating rate can change over time. As a result, your borrowing cost and monthly repayment may increase, decrease or remain similar depending on the applicable rate and your loan conditions.
This transition is a useful point to review your mortgage rather than simply accepting the next rate. Ideally, start checking your options before the fixed period ends so you have time to compare.
Your Two Main Options: Stay or Switch
Option 1: Stay With Your Current BankAsk your existing lender whether it can offer revised terms to keep your home loan. This is often described as a retention offer. Depending on the lender and your circumstances, it may include a different interest rate or a new preferential period.
Staying can be simpler because you may avoid some of the costs and paperwork involved in moving the mortgage. However, convenience alone should not decide the outcome. Check the new rate, how long it applies, what happens afterward and whether any other conditions change.
Option 2: Move Your Home Loan to Another BankIf your current lender's offer is no longer competitive, you can compare a refinancing offer from another bank. Moving your home loan generally means taking a new loan from another lender to repay the remaining balance of your existing mortgage.
Switching may give you a new fixed-rate period, more predictable repayments or lower borrowing costs. But it can also involve an early repayment penalty and other switching expenses, so the headline rate alone does not tell you whether moving is worthwhile.
What Should You Compare Before Switching?
The lowest interest rate is not necessarily the cheapest option. Compare the overall cost of staying with your current bank versus switching to another bank over the same period.
| Interest rate + fixed-rate period | A lower rate fixed for one year is not directly comparable with another rate fixed for three years. |
| Rate after the fixed period | Understand what rate or formula may apply once the preferential period ends. |
| Switching costs | Valuation, legal, registration or other applicable expenses can reduce the benefit of moving. |
| Insurance or bundled products | Additional requirements can affect the real cost of a loan package. |
| Early repayment fees & conditions | Check the cost of leaving your current loan early and the early repayment rules of the new loan. |
| Additional financing promotion | Relevant if you need eligible funds for renovation or home improvement. |
How Can You Estimate Whether Switching Bank Is Worth It?
A simple comparison can help you decide whether the potential savings justify the cost of moving the loan.
Estimated benefit of switching = expected borrowing-cost savings - total switching costs
For example, if moving the loan is expected to reduce your borrowing costs, first subtract any early repayment penalty, valuation, legal, registration and other applicable expenses.
If the expected benefit remains meaningful and the new loan terms suit your longer-term plans, switching may be worth considering. This is a simplified framework rather than a guaranteed savings calculation; actual costs depend on your outstanding balance, remaining tenor, repayment method, rates, fees and individual loan conditions.
A Quick Home Loan Review Checklist
- Check when your current fixed-rate period ends and what rate applies afterward.
- Ask your current bank for its best retention terms.
- Get a refinancing offer from another lender.
- Compare both options over the same period.
- Check your early repayment penalty and all switching expenses.
- Check insurance, bundled-product and early repayment conditions.
- Choose based on the overall financial outcome, not only the advertised rate.
Considering Moving Your Home Loan to KBank?
If you have compared the cost of staying with your current bank and decide that switching better fits your financial plan, KBank offers a home loan solution for eligible borrowers who want to repay an existing home loan at another bank.
- Fixed interest rate for 3 years*
- Financing of up to 80% of the property's appraised value*
- No compulsory insurance purchase requirements*
- No compulsory savings deposit requirements*
- Opportunity to apply for additional funds for eligible home renovation and decoration purposes*
For borrowers concerned about future interest-rate fluctuations, a longer fixed-rate period can provide greater repayment predictability and make household budgeting easier.
Learn more about KBank Home Loan :
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