Refinancing and Early Repayment: When Does It Pay Off?

How to compare switching costs with interest savings and what contracts allow.

4 min read · Loans & Credit

Life situations: Buying or renting home

Repaying early or switching to a cheaper loan can save interest.

Early repayment

Consumer credit law allows early repayment with a rebate of interest. Check contract conditions and any fees.

Refinancing

• Compare new rates with the old one.
• Include fees and penalties.
• Check the break-even time.

Mortgages

For fixed-rate mortgages, early exit triggers a penalty equal to the interest loss of the bank. Consider waiting for the end of the term or using a partial payment where the contract allows it.

Estimate your savings with the early repayment calculator.