Remortgaging in Belgium: returns, costs and smart timing

Remortgaging in 2025: is it time to save money?

Many Belgian homeowners are still repaying heavy mortgages taken out years ago, when interest rates were far higher. Now that rates have stabilised in 2025 (around 3.3-4.1%), everyone is asking the same question: should I remortgage? Can I really save money? And what does it actually cost?

The answer is: yes, remortgaging can be worthwhile - but it depends on precise calculations. With the right timing and strategy, you can save up to €20,000 or more over the life of your loan. But don't do it on a whim; working out the costs is essential.​

This article helps you decide whether remortgaging in 2025 makes sense for your situation.​

What exactly is remortgaging?

Remortgaging means: paying off your current loan using money from a new mortgage with a different bank (or the same bank on better terms). The new bank settles your old debt, and you then make your repayments to the new bank.​

This sounds straightforward, but it involves legal steps and costs:

1. You apply for a new mortgage with Bank B
2. Bank B approves you and makes the funds available
3. Those funds are used to repay Bank A
4. The notary handles the legal paperwork (release of the old mortgage, registration of the new one)
5. You make your repayments to Bank B from now on​

When is remortgaging worth it? Calculate your break-even point

The crucial figure is the break-even point: how many months do you need to save before you have recovered the remortgaging costs?

Formula:

textBreak-even point (months) = (Notary fees + Early repayment penalty + Valuation costs)
                      ÷ (Monthly saving)

Worked example:

• Property value: €250,000
• Outstanding balance: €180,000
• Current rate: 4.2%
• New rate: 3.6%
• Remaining term: 20 years

Monthly repayments:

• Old: 4.2% = €1,079/month
• New: 3.6% = €1,030/month
• Monthly saving: €49/month

Remortgaging costs:

• Notary fees: €800-€1,200
• Early repayment penalty: variable, here €0
• Valuation: €200-€500
• Total: ±€1,200

Break-even point: €1,200 ÷ €49 = 24.5 months (±2 years)

So: if you stay in your home for more than 2 years, you recover the costs and start coming out ahead. Planning to move in 2 years? Then it is not worth it.​

Remortgaging costs: the main items

Understanding what you pay helps you make a better decision.

1. Notary fees: €800-€1,200

This is the biggest cost item. The notary draws up the new mortgage deed, releases the old mortgage and registers the new one at the mortgage registry.​

Breakdown:

• Notary's fee: €400-€600
• Release costs (cancellation of old mortgage): €100-€200
• Registration of new mortgage: €150-€250
• Search fees: €40-€100

Tip: notaries set their own fees. Get at least three quotes.​

2. Early repayment penalty: variable

If your mortgage is still within a fixed-rate period, you will often have to pay an early repayment penalty for paying off ahead of schedule. This compensates the bank for the interest it "loses" through your early repayment.​

The early repayment penalty can vary considerably:

• No penalty: your fixed-rate period is just coming to an end
• Low (€200-€500): you are nearly at the end of the period
• High (€5,000-€15,000+): early in the period, or a large outstanding balance​

Tip: check your mortgage documents or ask your bank for the exact penalty amount before you decide. This will determine whether remortgaging makes sense.​

3. Valuation costs: €200-€500

The new bank wants to know what your property is worth. They usually require an up-to-date valuation. This can be done via:

• Online desktop valuation: €150-€250 (quick, less precise)
• On-site visit by a valuer: €300-€500 (more accurate)​

4. Insurance premiums (one-off): €50-€200

Some banks require you to take out different insurance policies (outstanding balance insurance, fire insurance). This can bring additional costs.​

5. Mortgage adviser (optional): €200-€500

An independent broker calculates what remortgaging will save you and negotiates on your behalf. Not compulsory, but it can deliver significant benefits.​

Total costs: €1,500-€3,500 (depending on the early repayment penalty).​

Scenarios: when does it pay off?

Scenario 1: high early repayment penalty, short horizon

• Early repayment penalty: €8,000
• Notary fees: €1,200
• Monthly saving: €60
• Break-even point: (€8,000 + €1,200) ÷ €60 = 154 months (12.8 years)

Conclusion: not worth it. Only remortgage if you are certain to stay for 13+ years AND you can avoid the early repayment penalty.​

Scenario 2: no early repayment penalty (period expired), lower rate

• Early repayment penalty: €0
• Notary fees: €1,200
• Valuation costs: €300
• Monthly saving: €80
• Break-even point: €1,500 ÷ €80 = 19 months (1.6 years)

Conclusion: worth it! Especially if you plan to stay for 5+ years.​

Scenario 3: energy renovation - lower rate with no early repayment penalty

• Renovation done - energy performance certificate improved - bank grants a 0.3% rate reduction
• Early repayment penalty: €0 (period expired)
• Costs: €1,500
• Monthly saving: €90
• Break-even point: 17 months

Conclusion: very attractive - combine remortgaging with an energy renovation.​

Rate blending: the alternative

Remortgaging with another lender is not always necessary. Many banks offer rate blending: your existing bank calculates a new rate as a mix of the old and new rate.​

Advantages:

• No notary fees
• No early repayment penalty
• Faster process
• You stay with your trusted bank

Disadvantage:

• The blended rate is higher than what you would get by switching lenders outright (because it is calculated "halfway")​

Example: old rate 4.2%, new market rate 3.6% - rate blending gives ±3.9%. Still attractive, but not as good as a full remortgage.​

Ask your bank about rate blending as a first step before you commit to remortgaging.​

Smart tips for remortgaging in 2025

1. Remortgage at the end of your fixed-rate period

This is the perfect moment:​

• No early repayment penalty (the period is over)
• Your bank will offer you a new rate anyway
• Competitors can tempt you with better deals​

Check your mortgage deed: when does your current period end? Start planning now.​

2. Don't wait for rates to rise again

Rates are stable in 2025 at around 3.3-4.1%. Historically, these are favourable levels. Experts expect them to stabilise, not fall further. Now is the time to act.​

3. Combine remortgaging with an energy renovation

Make your home more energy-efficient (roof insulation, solar panels, heat pump):

• You achieve a better energy performance certificate rating
• Banks offer a rate discount (-0.1% to -0.3%)
• You use less energy, so real-world savings too​

This can make your remortgage significantly more attractive.​

4. Use your equity to get a better rate

Is your property worth more than your outstanding debt? Demonstrate this with an up-to-date valuation:​

• A lower Loan-To-Value (LTV) ratio = a better risk profile for the bank
• The bank is more likely to offer you a lower rate or better terms​

5. Compare at least three banks

Not just your current bank, but also KBC, BNP Paribas, Belfius, Keytrade and Argenta. Rates can differ by 0.2-0.4%, which amounts to tens of thousands of euros over 20 years.​

6. Negotiate through a broker

Independent credit brokers (Hypotheekwinkel, Credishop, Immotheker) compare all the banks for you AND negotiate on your behalf. They receive a commission from the bank, not from you. Free for you, but highly effective.​

7. Check how your early repayment penalty is calculated

Some banks charge an excessive early repayment penalty. Request your original mortgage deed and have an expert review it. You can sometimes save €500-€2,000 by challenging the amount.​

Step by step: how to go about remortgaging

1. Week 1: review your mortgage deed. When does your fixed-rate period end? What is your current rate?
2. Week 2: ask your current bank about the early repayment penalty and rate blending. Get this in writing.
3. Week 3: calculate your break-even point using the formula above. Is it worth it?
4. Week 4: if yes - request quotes from at least three other banks (KBC, ING, Belfius, online lenders).
5. Week 5: contact an independent credit broker for additional negotiating power.
6. Week 6: choose the best offer. Request written confirmation + the APR (annual percentage rate).
7. Week 7: finalise your application. Sign the deeds at the notary (the process takes less than 2 weeks).
8. Week 8: close your old mortgage properly; keep proof of repayment.​

Conclusion: remortgaging can pay off in 2025 - but only if you do the maths

Remortgaging in 2025 could save you anywhere from a few hundred to twenty thousand euros - but only if you calculate carefully. The break-even point is everything. Remortgaging is not something to rush into, but it certainly deserves serious consideration.

Your checklist:

• Is your fixed-rate period ending soon or has it just ended?
• Have you obtained the early repayment penalty figure from your bank?
• Is your property worth more than your outstanding debt (positive equity)?
• Are you planning to stay in your home for at least 3-5 years?
• Are lower interest rates available (yes, in 2025)?

Three "yes" answers? Then remortgaging is almost certainly worth it.​

Use a loan simulator to work out your new monthly repayments. Ask estate agents about local mortgage advisers - they have the contacts and expertise to guide you through the process.

With proper preparation and careful calculation, you save on your mortgage - not by luck, but by knowledge.