Mortgage credit buyback
Lower the rate of your current credit.
If rates have fallen since you borrowed, buying back (or renegotiating) your mortgage loan can reduce your monthly payments or the term — and the total cost.
Credit buyback consists in replacing your current mortgage loan with a new one, on better conditions. In Belgium, you can either renegotiate with your bank, or have the credit bought back by another lender. Watch out for the costs: a reinvestment fee (legally capped at three months' interest for a mortgage loan for private use) and, in the event of a change of bank, notarial deed fees for the new mortgage.
The operation is worthwhile when the rate gap and the outstanding capital are sufficient to absorb these costs and generate a real saving. We carry out the full cost/benefit calculation for you and only recommend the buyback if it is genuinely a winner.
Warning: borrowing money also costs money.
Your questions, our answers
When is it worth refinancing your mortgage?
As soon as the gap between your current rate and market rates exceeds about 1%, refinancing deserves a serious calculation — taking into account the reinvestment indemnity (3 months of interest), possible notary fees and the remaining term. The more years left to repay, the greater the potential gain.
What are the costs of refinancing a loan in Belgium?
A reinvestment indemnity of 3 months’ interest to your current lender, file fees, and — only if you change bank — release and new mortgage registration fees at the notary. Internal refinancing (same bank) costs less but often yields a less aggressive rate: both routes must be compared.
Internal or external refinancing: what is the difference?
Internally, you renegotiate with your current bank: fast and cheap, but limited negotiation room. Externally, a new lender buys back the loan: extra notary fees, but real competition on the rate. The right choice is calculated case by case — that is exactly the broker’s job.
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