Is a mortgage refinancing actual saving? Experts analyze

More and more people are thinking about refinancing their housing loan. This is often a good idea, but it is worth remembering additional costs that can affect the profitability of such a decision.

As noted by Andrzej Prajsnar, an expert of the RynekPierwotny.pl portal, the last data of the Credit Information Bureau about the number of people applying for a mortgage will get quite optimistic from the point of view of banks.

– We would like to remind you that in May 2025 38.6 thousand people applied for a new housing loan, and June brought a slightly less result (37.5 thousand). These data look good for banks – especially considering the still high NBP interest rates. However, we must remember that BIK statistics also include quite numerous applications for refinancing of housing loans-indicates Prajsnar.

Experts of the RynekPierwotny.pl portal, in the analysis specially prepared for “Wprost”, indicate who should seriously consider refinancing and what additional costs should be taken into account before making a decision.

For whom for refinancing mortgages?

Experts have prepared a chart that helps to identify people currently interested in refinancing a housing loan. First of all, it is about those who took a loan with a high interest rate permanent – usually “frozen” for 5 years – which is higher than the current rates offered by banks. On the other hand, borrowers with a variable interest rate already use recent interest rate discounts or soon feel lower installments

– The problem is mainly quite a few borrowers who have taken out an unknown housing loan with a record high, periodically fixed interest rate. In 2022 it could be even above 8.50-9.00 percent. for a five -year period – says Andrzej Prajsnar.

It indicates that currently the problem is not finding a refinancing offer with a periodically permanent rate clearly lower than 7.00 percent.

– The restrictions introduced by financial supervision mean that it is the permanent rate that remains a refinancing variant for people who previously chosen larger installment security – he explains.

At the “refinans” of a fixed rate there will be restrictions

Experts of the RynekPierwotny.pl portal point out that in mid -2023 the Polish Financial Supervision Authority issued a special letter to banks, in which it clearly defined the rules regarding the refinancing of mortgage loans. This document introduced a ban on refinancing the loan with a periodically fixed interest rate using a variable interest rate or loan with a periodically fixed interest rate, but for a shorter period than in the original contract or shorter than five years.

– The above restriction does not apply to a situation where the agreed percentage rate (usually five years) has already ended. Despite this, the position of the PFSA, to which the largest banks adapted, may be uncomfortable for some borrowers. They must remember that in the event of refinancing mortgages with periodically fixed interest rate, the new fixed rate will apply for at least the same as in the original contract (minimum five years). Of course, you can refinance the loan again for some time, but this is not a cost -free option – notes Prajsnar.

Refinancing of the loan – what to look for?

Experts point out that people considering refinancing their housing credit – most often with periodically permanent interest rate – should not only remember the benefits of bank ads. These benefits can be significant. For example, with a debt balance of PLN 300,000 and a thirty -year repayment period, an interest rate reduction from 8.5 percent. up to 6.5 percent It can reduce the monthly installment by PLN 411.

– Unfortunately, “Refinans” always generates costs, which will be reminded of, for example, a good credit advisor. It is also about a situation in which the bank resigns from collecting a commission for granting a refinancing loan – says Andrzej Prajsnar.

Although the commission for refinancing is the most commonly discussed cost, there may also be other fees to keep in mind. Examples are:

• Possible commission for earlier total repayment of the refinanced loan (Note: In the case of loans with a periodically constant interest rate granted from July 22, 2017, banks quite often resign from collecting commissions for early repayment, and the reason for such behavior is the opposite provisions of the Act on mortgage, in turn, “flood -percentage” loans from July 22, 2017 Earlier repayment may apply only for the first three years),

• usually a few hundred zloty costing the apartment or house for the needs of a new loan,

• costs of removing the mortgage and making its entry for the second bank (PLN 319),

• Possible higher contributions of new credit insurance (always real estate insurance and often life policies).

– In many cases, refinancing turns out to be definitely favorable despite the costs mentioned above. However, you need to take them into account each time. Before making a decision, it is worth checking if the current bank will definitely not agree to a reduction in interest. According to the position of the Polish Financial Supervision Authority, in such a situation the new stake will apply for the period provided for in the contract (min. Five-year)-sums up Prajsnar.