Borrowers making monthly instalment payments allocate more for interest and less for principal when rates rise.
Elevated interest rates became the topic of public discussion recently after a homebuyer posted her home instalment payment of 10,900 baht on social media, of which the principal accounted for only five baht, while interest expense was 10,894.5 baht.
The post garnered much attention following interest rates hikes the past two years as mortgages with variable rates require higher interest payments, which could lead to more a fragile economy.
Household debt has swelled in the country and the Bank of Thailand…
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