Refinancing
The rule of thumb says “at least 0.5 to 1 percentage point lower”, but it ignores the costs. Here they count: reinvestment fee, a new deed and file fees.
What you still owe today, not the amount you originally borrowed.
The rate another bank, or your own, is offering you.
Notary, mortgage duty and registration. Budget 2 to 3% of the capital.
Refinancing pays
€ 11.826
net gain after all costs, at a rate gap of 0.90 points
Difference per month
€ 81
Interest saved before costs
€ 17.536
Break even after
71 months
For mortgage credit the reinvestment fee is capped by law at three months' interest on the capital repaid early.
As a first filter, yes, but it says nothing about your situation. What matters is the outstanding capital and remaining term on one side against the fixed switching costs on the other. With a small balance or few years left, the deed dominates and even a wide rate gap does not pay. With a large balance and fifteen years to run, 0.3 points can already be worth it.
For mortgage credit it is capped by law at three months' interest on the amount repaid early. On €180,000 at 3.8% that is roughly €1,710. That is far lower than in many neighbouring countries, and it is precisely why refinancing pays relatively often in Belgium.
Your own bank can offer an internal revision without a new notarial deed, removing the largest cost. It will charge a fee for it and rarely offers its sharpest rate to a customer already on the books. Ask for both: an external offer is also your strongest bargaining chip with your current lender.
It does not automatically follow. With a new lender you usually take out a new policy, and the premium depends on your age and health today, not when you first signed. If you are older or your health has changed, the new premium can eat into the rate gain. Always get a quote first.
Have a concrete offer on the table? Put it next to your current loan and see the full picture, all costs included.
Compare in detailThis calculation is indicative and assumes a level-payment annuity loan. Your actual reinvestment fee, deed costs and rate are in the lender's offer. Always ask for an ESIS sheet.
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