In short
- Refinancing pays off with a clearly higher margin and a large balance.
- With a variable rate, early repayment fees apply only in the first 36 months (max 3%).
- A 1 p.p. lower rate on PLN 400,000 saves about PLN 230 a month.
When refinancing pays off
When your current margin is clearly above new offers, a large balance remains, and switching costs pay back within a reasonable time. We work it out on real numbers.
Switching costs
- Property valuation
- Court fees for entering and removing the mortgage
- Possible commission at the new bank
- Early repayment fee at the old bank
Early repayment fee
With a variable rate the bank may charge a fee only during the first 36 months of the agreement and no more than 3% of the amount repaid. With a fixed rate the bank may claim compensation if you repay during the fixed period.
Refinancing as a foreigner
The new bank reassesses your capacity and status. If you've since obtained permanent residence or higher income, you may get noticeably better terms.