Factors affecting the decision to refinance out among Government Housing Bank customers

Abstract

This research aimed to investigate the factors influencing customers' decisions to refinance their mortgages to other banks and to explore strategies to reduce the mortgage refinance rate among Government Housing Bank customers. Employing a mixed-methods approach, the study collected data from 400 questionnaires and 10 in-depth interviews. Statistical analyses included frequency, percentage, mean, standard deviation, and multiple regression analysis at a significance level of 0.05.

The data indicated that the majority of respondents were female (50.50%), aged between 31-40 years (66.25%), single (60.00%), with a bachelor's degree as the highest education level (77.50), and had a monthly income of 20,001-30,000 baht (34.50%). Regarding consumer behavior, 50.00% of current customers had loans with other financial institutions. The primary purpose of using the Government Housing Bank's loan services was to purchase or build a residence (77.80%). Most customers made their loan decisions independently (80.50%), and their highest expectation was a reduction in interest and fees (49.30%). Additionally, 42.80% currently used mobile banking for goods and services payments. The correlation analysis revealed that the marketing mix factors of price, promotion, and personnel significantly influenced the decision to refinance. Interviews indicated that customers generally felt confident in the bank and appreciated its lower interest rates compared to other banks. However, the refinance interest rate was still considered high, and the high volume of customers at the Government Housing Bank led to service delays. Therefore, the bank should enhance its customer service by streamlining transactions and making them more convenient for customers. Additionally, the bank should adjust interest rates to increase its competitiveness with other banks, especially by offering lower or zero interest rates to customers with a good history.