Bank change: how to keep the fees low when changing banks!

Bank switching fees

Once the fixed-rate period has expired, borrowers need to ask themselves where they want to take their loan further. Often they stay with the same bank, even if other banks would have better and cheaper follow-up financing.

This means that money is being given away unnecessarily. Most borrowers seem to want the peace of mind that they already know the bank maintains. Accordingly, only 15% switch to a new bank after the fixed-interest period has expired.

Notary fees when changing banks?

That borrowers reluctantly change the bank but also has another reason. Many people believe that the transfer of the land charge causes again notary costs with a bank change. In truth however no notary is necessary for it. Accordingly, no notary fees are incurred.

If the borrower wants follow-up financing with another bank, the latter has the right to request the land charge assignment. There are fees for the transfer of the land charge, but they are very low. Mostly in the small hunter range. A new loan with better conditions can often save you thousands of euros.

When will the bank change be more expensive?

Only if the land charges are deleted from the land register and then a new amount must be specified it becomes more expensive. This is then usually 1000 – 2000 €. But this is only necessary if new land charges have to be registered. This is only the case if the loan amount in the follow-up financing is larger than the current loan.

But most of the time it is the other way around. The borrower has then paid part of the loan and does not need any further land charges for his new financing.

When the old bank sends a renewal offer?

Usually the banks send renewal offers relatively late. According to the law, the offers must be available to the borrower no later than 2 weeks before the expiry of the current fixed-interest period.

As a result, the borrower has only a very short time to consider which is often not enough to find a better offer. Den other banks must first check the borrower's funds and property value before making a binding loan offer.

This is how to proceed before the fixed-interest period expires

It is handled exactly as if you were applying for new financing. Different offers of different financiers are analyzed. The effective interest rates are of particular importance, as they include all fees and the interest on the loan. At least 3 months before the expiry of the fixed-interest period, you should ask your bank for a renewal offer.

Then you get other offers from other financiers. After that one chooses the most favorable loan. If the best loan is not offered with the current bank, the bank is changed. A small fee must be paid, but this can be easily recovered through the interest savings. Now stands the new loan with the currently best conditions.