Mortgage refinancing and loan consolidation

When should you refinance your loan?

Refinancing is not always worthwhile. Here are the four situations where it always deserves a calculation:

• Your variable rate has been revised upwards. This is the most frequent situation at the moment: annual or three-yearly revisions fall in a market where rates have risen. Switching to a fixed rate secures your monthly payment for good.
• Your monthly payment has become too heavy. Loss of income, separation, new charges: extending the term of the loan reduces the monthly payment, even if the total cost increases. It is sometimes the solution that protects your budget.
• You borrowed at a high rate. If your loan dates from a period of high rates and your profile has improved, a new calculation is a must.
• You want to finance renovation work. Refinancing sometimes makes it possible to add a renovation budget to the existing loan, at the mortgage rate rather than the rate of a renovation loan.

Switching from a variable to a fixed rate

This is the number one request we currently receive. If your loan was taken out at a variable rate and your revision is approaching or has just come, you have two questions to settle: is your future monthly payment bearable at the cap of your formula, and is switching to fixed worthwhile once all costs are counted?

How much does refinancing really cost?

This is the point many borrowers discover too late. Refinancing is never free, and the calculation must include:

• The reinvestment fee : when you repay your loan early, the bank can claim a fee, capped in Belgium at three months' interest on the capital repaid.
• The mortgage release costs : if you change banks, the old mortgage must be released, which requires a notarial deed.
• The costs of the new loan deed : new mortgage registration, registration duties and notary's fees.
• The file and valuation costs of the new lender.
• The cost of the new insurance policies : mortgage protection insurance and home insurance to be reassessed.

An operation is only worthwhile if the total saving exceeds all these costs over the remaining term of your loan. We do this complete calculation before taking any step, free of charge.

Refinance with your bank or change banks?

Both options exist and do not have the same cost.

Refinancing with your current bank is much cheaper since the reform that came into force on 10 June 2024: your bank can no longer claim a reinvestment fee when the loan is refinanced with it, and file costs are capped at €175. There is also no mortgage release or new mortgage registration.

Changing banks involves all the costs mentioned above, but can still pay off if the rate difference is large enough. This is precisely the role of a broker: putting both scenarios in competition, including your current bank's offer, and showing you the figures side by side.

Consolidating other loans in your refinancing

If you are repaying several loans alongside your mortgage (car loan, personal loan, credit line), it is sometimes possible to include them in the refinancing operation. You then pay only one monthly payment, spread over the term of the mortgage, which noticeably reduces the monthly burden.

Two points to watch before you decide. First, spreading a short debt over twenty years reduces the monthly payment but increases the total cost of interest: the operation must bring a real, measurable benefit, not just immediate relief. Second, the bank reanalyses your whole situation, including the mortgage guarantee. We always calculate both scenarios, with and without consolidation, so that you can decide with full knowledge of the facts.

How we proceed

If refinancing is not in your interest, we tell you clearly.

Frequently asked questions about refinancing

Article written and checked by the team at Hypoprime, FSMA-registered mortgage broker in Brussels. Any refinancing operation remains subject to the lender's analysis and approval. The legal conditions mentioned are those in force in 2026. Warning: borrowing money also costs money.