Refinancing your mortgage in the Netherlands
You have been paying your mortgage for years, but in the meantime interest rates have changed. Or your life has changed. Maybe you want more certainty about your monthly payments, you have built up home equity, or your current mortgage type no longer fits who you are today. Then refinancing is worth exploring.
Refinancing means replacing your current mortgage with a new one — with the same or a different lender. It can save you hundreds of euros a month. But it can also disappoint if you do not factor in the costs. We calculate it honestly for you.
When is refinancing a good idea?
Refinancing is not the right move for everyone at every moment. It pays off when the savings on your monthly payments exceed the costs of switching. These are the situations where it is worth making a calculation:
- Your current interest rate is significantly higher than what you can get now. A difference of 1% or more can easily amount to a few hundred euros per month.
- Your fixed-rate period is ending soon. This is the ideal moment: no early repayment penalty, and full freedom to compare lenders.
- Your situation has changed. Higher income, divorce, children, working fewer hours — your mortgage needs to fit your life as it is now.
- Your property value has risen significantly. More equity means a lower risk premium from the bank, and potentially a lower interest rate.
- You want more certainty. A longer fixed-rate period of 10 or 20 years gives peace of mind on your monthly payments, even if rates rise.
- You now qualify for NHG. The National Mortgage Guarantee (NHG) threshold in 2026 is €470,000. That can meaningfully reduce your interest rate.
What does refinancing cost?
Refinancing is rarely free. The biggest expense is the early repayment penalty (Dutch: boeterente): a fee the bank charges because you are ending your agreed interest rate earlier than planned. The bank loses out on the interest income it had counted on.
The early repayment penalty is capped by law — you never pay more than the bank's actual financial loss. In practice, however, the amount can still be substantial. On top of the penalty, you should budget for appraisal costs, notary fees and advisory fees.
Most refinancing costs are tax-deductible, as long as you do not include them in the new mortgage. We will explain exactly how that works for your situation.
Interest averaging: refinancing without an early repayment penalty
Want to take advantage of a lower interest rate, but is the early repayment penalty too high? Then interest averaging (Dutch: rente middelen) is sometimes a smart middle ground.
With interest averaging, you do not take out a new mortgage with a different lender. Instead, you agree a new interest rate with your current bank: the average of your old rate and the current market rate. This means you pay no early repayment penalty, but your new rate will be slightly higher than if you had switched lenders entirely.
Whether interest averaging is more advantageous than full refinancing depends on your specific situation. We calculate both options for you and advise which one suits you best.
How does refinancing work with Libero Financieel?
- Free introductory meeting
We discuss your current mortgage, your wishes and your situation. No obligations — just immediate clarity. - We calculate the break-even period
Our advisor works out what the refinancing costs are and how much you save per month. That tells you quickly whether it is worth your while. - We compare all lenders
100% independent. We look not just at the lowest rate, but at the conditions that fit your situation. - We handle everything for you
From requesting quotes to completing the process at the notary. You do not have to worry about a thing. - Financial peace of mind
Your new mortgage fits who you are today — and your plans for the future.
Frequently asked questions about refinancing in the Netherlands
When does it make sense to refinance my mortgage?
Refinancing makes sense when the savings on your monthly payments exceed the total costs of switching. The break-even period is the key figure: divide the total costs by the monthly saving. If you come out below five to seven years, it is almost always worth it. A rate difference of 1% or more is already a good reason to request a calculation. We do that for you, free of charge.
What is an early repayment penalty and how high can it be?
An early repayment penalty (Dutch: boeterente) is the fee you pay to your current bank when you end your mortgage earlier than agreed. The bank misses out on interest income as a result. How much you pay depends on the outstanding debt, the remaining fixed-rate period and the difference between your contract rate and the current market rate. The penalty is capped by law: you never pay more than the bank's actual financial loss. Most mortgages also allow you to repay 10 to 20% per year without a penalty — which can significantly reduce the amount you owe.
Can I include the early repayment penalty in my new mortgage?
Yes, that is technically possible, provided you do not borrow more than 100% of the property value and your income allows it. Bear in mind that interest on the portion of the loan used to cover the penalty is not tax-deductible. We will calculate what makes the most sense in your specific situation.
What is the difference between refinancing and interest averaging?
With refinancing, you take out a completely new mortgage — with the same or a different lender — and pay off the old one. This may involve an early repayment penalty. With interest averaging, you stay with your current bank and agree a new interest rate: the average of your old rate and the current market rate. You pay no penalty, but you also do not benefit fully from the lower market rate. Which option is better depends on your situation. We will calculate it for you.
Are refinancing costs tax-deductible in the Netherlands?
Yes, most refinancing costs are tax-deductible — including the early repayment penalty, advisory fees and notary fees — as long as you do not include them in the new mortgage. If you do roll them into the new mortgage, you lose the tax benefit on that portion. We always give you clear advice on this, so you do not miss out on savings unnecessarily.
Can I refinance if my property value has fallen?
That is more difficult, but not impossible. If you owe more than the property is worth, you fall outside the standard acceptance criteria of most lenders. In some cases, a personal loan for the remaining amount can be a solution. We look honestly at your situation and tell you what is feasible.
Want to know whether refinancing is worth it for you?
Our advisor calculates it for you quickly. No obligations — just immediate clarity. Schedule a free introductory meeting, online via video call or at our office in Enschede.