Mortgage Crash Course – Step 7: Refinancing

Move your mortgage for a better deal

When to Refinance

Rate Difference: If another bank offers 0.3%+ less, investigate. On 3 million SEK, that's roughly 9,000 SEK/year before deductions.
Property Re-evaluation ("Omvärdering"): Every 3–5 years it may be beneficial to re-evaluate your property value. If it increased, your Loan-to-Value Ratio ("Belåningsgrad") drops and you may qualify for a lower rate. A realtor may give you an evaluation and written assessment for free in the hope you may sell through them.
Life Changes: New income, paid off debts, or inheritance may qualify you for better terms.
Poor Service: Unresponsive or inflexible bank? That alone can justify a switch.
Binding Period Expiry ("Bindningstidens Utgång"): The natural window. No break costs, full freedom to shop around.

Break Cost ("Ränteskillnadsersättning"): Compensation to the bank for lost interest income if you leave early.
Calculation: Based on the difference between your locked rate and current market rate for the remaining period. Since July 2025, the calculation uses swap rates ("Swappräntor") averaged over 20 trading days, rather than the old method based on government bond yields ("Statsobligationsräntor").
When Worth It: Rates have dropped significantly and savings outweigh the break cost. Do the math.
Ask for a Quote: Your bank can calculate the exact cost. Always get the number before deciding.
Tax Deductible: The break cost ("Ränteskillnadsersättning") is deductible as an interest expense.

Get Offers: Approach 2–3 banks with your loan details, property value, and financial overview.
Counter-Offer: Tell your current bank you're leaving. They will often match or beat the offer.
The Switch: The new bank pays off your old loan directly (the money usually won't touch your bank account), registers mortgage deeds ("Pantbrev") if needed, and sets up your new loan.
Costs: Possible setup fee ("Uppläggningsavgift") and mortgage deed re-registration. Usually minor compared to savings.

Your Best Tool: A written offer from another bank is the most powerful negotiation lever.
Be Specific: Show exact numbers. Vague claims are easy to dismiss.
Don't Bluff: If you say you'll leave, be prepared to actually do it.
Annual Habit: Make rate negotiation ("Ränteförhandling") a yearly routine. Set a calendar reminder when your binding period expires.

Step 7 of 8