What to remember
- The new bank must approve your loan and property.
- Match currency and remaining term, and add switching costs.
- A lower monthly payment does not always mean a lower total cost.
What does moving a mortgage mean?
The new bank provides a loan to repay what you owe the current bank. You then make payments under the new contract. This is refinancing, not simply changing the account used to pay instalments. You might seek a lower rate, a longer fixed period or more suitable terms, but the new bank must approve the application. Also ask your existing bank for improved terms without switching, and compare both options in writing.
Start with what you still owe
Request a written settlement figure from the current bank for your intended switching date. It should separate outstanding loan balance, interest to that date and other costs; an app balance may not be the final figure. Obtain the remaining repayment schedule and identify any arrears separately. Give the new bank the calculation and ask whether the new loan covers it fully or requires your own contribution. Interest can continue accruing until settlement.
How the switch works, step by step
This is a discussion checklist. The banks and notary must agree the sequence for settlement, release of the old mortgage and registration of the new mortgage in your case. Do not assume these steps are automatic or completed on the same day.
| Step | What to establish |
|---|---|
| 1. Obtain offers | Get the settlement figure and a new quote matching currency and remaining term. |
| 2. Apply to the new bank | Submit documents; the bank assesses income, commitments and property. |
| 3. Obtain approval and terms | Check the conditions that must be met before funds are released. |
| 4. Coordinate payment and security | Confirm who transfers the settlement funds and handles notary and property-registration steps. |
| 5. Confirm settlement | Obtain old-loan settlement confirmation and the relevant mortgage documents. |
| 6. Check the new payment | Obtain the new schedule, first-payment date, account and insurance terms. |
Documents worth preparing
The exact list varies with the bank, property and income source. Request the refinancing checklist before paying for new documents or a valuation. Documents used for the original loan may need updating.
| Group | What may be requested |
|---|---|
| Existing loan | Contract, remaining schedule, payment history and settlement calculation. |
| Income | Identification, income evidence and statements, including co-borrower evidence where required. |
| Property | Ownership documents, existing mortgage records and a valuation accepted by the new bank. |
| Insurance | Existing policies and confirmation of amendments, renewal or replacement. |
What can switching cost?
Request one complete list of charges, who pays them and when. A zero new-loan disbursement fee does not make old-bank settlement, notary, insurance or property-registration costs free. Fees added to the new loan may also accrue interest. If reimbursement is offered, obtain its scope, cap, timing and conditions in writing.
| Cost | Question for the bank |
|---|---|
| Settlement at the current bank | What interest is due to settlement, and is early-repayment compensation payable? |
| New loan | Are there application, approval or disbursement charges? |
| Property and documents | What do valuation, notary, old-mortgage release and new registration cost? |
| Recurring costs | What are the insurance, account and salary-package charges? |
| Currency conversion | If the currency changes, which exchange rate and fees apply? |
The cost of closing the old mortgage
Article 13 of Regulation 48/2015 caps mortgage early-repayment compensation at 2% of the amount repaid when more than one year remains, or 1% when one year or less remains. It also cannot exceed the bank’s justified financial loss. These are ceilings, not automatic fees; regulatory exceptions apply. Request the calculation for your contract and the basis for each charge.
Compare payments from today onwards
Compare the outstanding amount in the same currency over the same remaining term, rather than the original loan amount and term. Previously paid costs are not paid again simply because you are deciding today. Request the new APR and schedule, but do not rely only on comparison with an APR calculated years ago. Compare remaining old-loan payments against new payments plus switching costs, without double-counting financed charges. Check follow-on formulas after introductory rates. If moving from lek to euros, also consider income currency and exchange-rate scenarios.
Example: when a lower payment costs more
Assume EUR 50,000 outstanding over ten years at a fixed 6.00% nominal rate. A new bank offers a fixed 5.00%, with EUR 1,000 total switching costs paid upfront rather than financed and no other costs. Keeping a ten-year term saves about EUR 1,973 after switching costs. Extending to fifteen years lowers payments further but costs about EUR 5,559 more overall than keeping the existing loan. These are hypothetical offers with equal monthly instalments and annual rate divided by 12; figures are rounded. Variable-rate outcomes are not guaranteed.
| Option | Remaining term | Approx. monthly payment | Approx. payments from today |
|---|---|---|---|
| Current loan · 6.00% | 10 years | EUR 555 | EUR 66,612 |
| New bank · 5.00% | 10 years | EUR 530 | EUR 64,639 |
| New bank · 5.00% | 15 years | EUR 395 | EUR 72,171 |
Illustration, not a bank offer. The last column includes future instalments plus EUR 1,000 switching costs for the new-loan options.
What to check after the switch
Continue meeting existing obligations until settlement is confirmed; applying to a new bank does not close the old loan. Check that settlement was recorded and agreed mortgage steps completed. Keep the closure confirmation, new contract, property records and schedule. Verify the first payment, insurance and any salary-transfer requirement. The old account or card may remain open separately; ask which services and charges continue.
Questions to take to the bank
Use this list when requesting your written offer.
- Do you accept refinancing for my loan, and what needs approval?
- What is the settlement figure on the switching date, and what does it include?
- What do I pay upfront, and are any costs added to the new loan?
- Who coordinates settlement, notary and mortgage-registration steps?
- What are the follow-on rate, APR, salary and insurance conditions?
- What will I pay from today to completion if I keep the remaining term?
Frequently asked questions
Is opening an account at the new bank enough?
No. A new loan must be assessed and approved, and settlement and property steps completed. Opening an account does not transfer the loan.
Are all costs free if an offer says “zero fee”?
Not necessarily. Ask which fee is waived and request the old-bank, new-bank and third-party costs.
Must I move my salary too?
It depends on the offer. If the rate discount requires salary transfers, check the duration, package charges and what happens if payroll stops.
Can I change both bank and currency?
Only if the new bank accepts and approves that option. Request the conversion rate and new-currency offer, and assess the effect on your income and budget.
Sources and examples
BKT: questions about transferring a mortgage to another bank ↗
Links beside specific explanations identify their official sources. Worked examples are educational assumptions, not bank offers. The bank confirms the terms for your situation.