Refinancing in 2026: when is it worth it?

Refinancing means repaying your existing mortgage and taking out a new one, often with a different lender and at a different rate. Whether this is worthwhile depends on several factors: the rate difference, the early repayment penalty, the remaining term and the transaction costs.

Early repayment penalty (boeterente)

If you refinance before the end of the fixed-rate period, you pay an early repayment penalty to your current lender. The amount depends on the difference between your contract rate and the current market rate for a comparable term. The larger the rate difference and the longer the remaining fixed-rate period, the higher the penalty.

Breakeven calculation

The key question when refinancing is: when will I have recovered the costs through lower monthly payments? If the penalty and transaction costs total €8,000 and you save €200 per month, the payback period is 40 months. If you expect to stay in the property longer than that period, refinancing makes financial sense.

Transaction costs

In addition to the early repayment penalty there are advisory fees, notary fees and possible valuation fees. Some lenders offer a rate reduction without advice (execution only), but this is not always wise for complex situations or higher mortgage amounts.

Disclaimer

This is general information, not personal mortgage advice. Interest rates and standards change regularly. A Wft-certified advisor will calculate whether refinancing makes sense in your specific situation.