Why Renegotiate Your Mortgage Loan Now?

Renegotiating your mortgage loan now can allow you to secure a better rate before further increases, especially if your remaining term is still significant (for example, more than 10 to 15 years). For loans with an initial duration of less than 25 to 30 years, the financial benefit can be particularly attractive when the interest rate difference is meaningful. Timing is crucial: the earlier you secure a more favorable rate in the life of your mortgage, the greater the potential savings over the remaining years. That is why it is important to analyze your situation today, rather than waiting until the rate environment becomes clearly unfavorable.

Hidden Costs and Points of Attention When Renegotiating

Obtaining the lowest nominal interest rate does not automatically mean you are winning in the transaction. When you take out a new mortgage loan to repay an existing one, several additional costs must be carefully considered in your calculation. Ignoring them could wipe out part or all of the expected benefit. Among the main costs, you will usually face a reinvestment indemnity to be paid to your current bank. This indemnity typically corresponds to three months of interest calculated on the total remaining capital. In addition, you may have to bear the costs of releasing the old mortgage and, for some institutions, the closing fees of your existing file. If you change banks, you also need to consider the opening file fees and any property appraisal fees requested by the new institution, as well as the notary fees related to the new mortgage deed. Certain banks may also offer attractive rates in exchange for subscribing to additional products such as fire insurance, outstanding balance insurance, salary domiciliation, or other financial products. These elements must be integrated into your comparison.

How to Renegotiate Your Mortgage Loan Effectively in 2026?

You can renegotiate your mortgage loan either with the bank that originally granted your loan or with competing credit institutions. Before making any commitment, it is wise to gather multiple offers from several players in the market. This gives you a clearer view of current conditions and strengthens your negotiating position. A first step is often to contact your current banker and ask for a rate reduction. This negotiation may be delicate: the bank loses part of its revenue if it lowers your rate, but it also risks seeing you leave for a competitor. In practice, a difference of about 1% between your current rate and what the market offers is often needed to generate a substantial benefit, depending on your situation.

If your bank does not agree to a sufficient rate reduction, a compromise sometimes consists in setting up a new loan with the same institution without releasing the existing mortgage, or repaying the old loan without charging a reinvestment indemnity. This type of arrangement can limit costs while improving your conditions. You should also analyze the offers of competing banks and credit organizations. Some may display lower nominal rates, but require, in return, the subscription of additional products that increase the overall cost. To choose the most interesting solution, it is essential to compare what you will actually gain with the new bank and the full set of costs linked to the buyback and restructuring of your mortgage loan.