Choosing a loan, many look only at a low first-year rate without knowing if it is fixed or floating — which hugely affects long-run payments. Understand both to match your risk tolerance.
Fixed locks the rate for agreed years — certain payments, easy planning. Floating tracks a reference like the MRR; payments fall when markets ease and rise when they tighten.
| Aspect | Fixed | Floating |
|---|---|---|
| Certainty | High | Low |
| Risk | Low | Higher |
| Cheap-rate chance | Limited | If markets ease |
Most Thai loans are hybrid — fixed for 1–3 years, then floating. A common play: take the longest early fixed term, then refinance into a fresh fixed deal to dodge higher floating rates.
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