Hi,

Let me clarify some of the issues of your scenario. Now we have new policies which applies to most of the banks. Where interest rate can only go up to BLR-1.8% p.a . Before this, we have BLR-2.2%, even BLR-2.3% . It appeared in the newspaper just recently, that the bank is not earning money, therefore interest rate for all the local banks only up to BLR-1.8%. Regarding, the lock in period, most of the banks have standard lock in period of 5 years. Some even go further than 5 years (7 years). So, if you plan to refinance your loan, and do not want to undergo penalty, might as well you stay with Public bank until the lock in period mature. After the lock in period, you can refinance anytime without paying any penalty to the bank. However, if refinance can save you 30k and the penalty is only 10k. I would say, you can go ahead with the refinancing plan. Refinance is only up to 90%, same applies to new purchase. Unless you want to include MRTA and Legal fees inside, then we called it 90% ++ (up to 95%). Hope i clear your doubts regarding housing loan and refinancing plan.