Refinancing calculator
Switching mortgage costs money up front and saves money every month. The question is not whether the instalment drops, it is how long you take to earn back what the switch costs.
- Current instalment
- €908.97
- New instalment
- €816.96
- Drop in instalment
- €92.01
- Fees earned back in
- 17 months
This is a simulation based on what you typed. It does not replace your books or your advisor.
Take it into your Fider accountHow to use it
- Enter the capital still owed, not the original mortgage amount.
- Put in the rate you pay today and the months left.
- Add the new offer. Keep the same months if you do not want to stretch the term.
- Count everything the switch costs you in fees, appraisal included.
Subrogation, novation or a new mortgage
Subrogation moves the loan to another bank. Novation changes the terms with the same bank and is usually cheaper. Cancelling and opening a new one is the most expensive route, and sometimes the only one.
Stretching the term is not saving
If the new one runs for more months, the instalment drops a lot and the net saving can come out negative. The calculator says so: look at the net saving, not at the drop in instalment.
The one point rule
The classic reference is that it pays from one percentage point of difference. With a high outstanding capital and many years ahead, half a point can be enough. With five years left, not even two points.
It compares two amortisation schedules at a constant rate. A future variable rate cannot be predicted; use today's euribor plus the spread.
Frequently asked questions
What does subrogation cost?
The subrogation fee is capped by law (0.15% in the first five years when moving from variable to fixed, 0% afterwards) plus the appraisal, and the new bank usually covers notary and registry.
Can I switch from variable to fixed?
Yes, and it is the most common reason for a novation. With euribor high you turn an uncertain instalment into a fixed one.
What if my bank matches the offer?
It can (right of enervation). It costs you nothing and you get the new terms without moving.
Does the home purchase tax relief count?
If you are entitled to it from a purchase before 2013, a brand new mortgage can make you lose it. Check before switching.
What is the break-even point?
The months you take to earn the fees back out of what you save each month. Past half of the term left, the saving is fragile.