Guide-Epargne.be confirms that it is the right time to refinance your credit for those who borrowed a few months ago. “Today, if you take out a 20-year mortgage at a fixed interest rate, you pay 3% interest on average, significantly less than the 3.75% average rate you could borrow at in November 2023.“
Refinancing your credit with your own bank is the least expensive operation. “If you stay with your current bank, they can currently only charge you 175 euros in processing fees. In theory, this is the most advantageous option, but the bank is not obliged to accept your refinancing request, as it would lose income this way. It is therefore perfectly possible that she will refuse your request.”indicates Guide-Epargne.
Go look elsewhere
If your bank is not generous enough, you still have the option of refinancing your credit with another institution.
First there are the mortgage discharge fees: your old loan must be removed. The deletion is done by a notarial deed, which involves notary fees. The costs of taking out a new mortgage loan must also be taken into account, always by notarial deed. The re-employment compensation also remains due (maximum three months of interest with your old bank). Finally, you will have to take into account the application fees (€350) for establishing a new mortgage loan. Not forgetting the costs of reconsidering your outstanding balance insurance and your fire insurance (if you have taken out one). Not to mention possible appraisal fees for your property which may be requested by your new credit organization. These costs can amount to €1,000.
In general, it is estimated that to cover these costs, you need a difference of one percent between your old rate and the new one, and a remaining credit term of at least 10 years.
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