End of fixation — the moment to refinance without penalty
When your fixation ends, the bank sends you a new rate offer — and that's the only moment you can refinance without any fee. The procedure we recommend to all clients is below.
The bank's automatic offer is almost always the worst
3 months before fixation ends, the old bank sends you a letter with a new rate. This rate is almost always 0.2–0.5 % higher than what's available on the open market. The bank counts on you being too lazy to compare.
Don't sign the bank's automatic letter. Treat it as a starting point for negotiation.
Get 3+ competing offers
Contact at least three other banks (not the one you're with) and get binding offers. Each bank will run their own DSTI/DTI/LTV check on you — that's normal. Tell them honestly: "I'm finishing fixation at Bank X with rate Y. What can you offer?"
Banks like to win clients. The best offers come from banks where you're a new client.
Negotiate with the old bank
Once you have 2–3 strong offers from competitors, contact the old bank and tell them: "I have an offer at rate X from Bank Y. Match it or I'm leaving." In about 60 % of cases, the old bank will match or beat the offer to keep you.
If they don't budge — leave. Refinancing is paperwork, not heart surgery.
Switching banks: the timing
Once you decide to refinance, you have 3 months from the end of fixation to switch without penalty. Use this window. The new bank handles most of the paperwork — you just sign and the new bank pays off the old one.
Important: until the registry transfer is complete, you must keep paying the old bank. Set up the new direct debit only after confirmation that the new bank is registered as the lien holder.
FAQ
What if I miss the 3-month window?
You enter a new fixation period at the bank's automatic rate. You can refinance later, but you'll pay 0.5–2 % penalty on the outstanding balance. The next no-penalty window is at the end of the new fixation.
Should I keep the same fixation length?
Not necessarily. If rates have risen, lock in for longer (7–10 years) to protect against further hikes. If rates are expected to fall, take a shorter fixation (1–3 years) to refinance again at a better rate.