Refinancing a loan in Slovenia: when switching banks pays off

Refinancing a loan means paying off your existing loan with a new, cheaper one, usually at another bank. For a mortgage, switching costs €1,000 to €3,000, so it pays off when the lower payment earns that back within a few years and there is still enough time left on the loan.

In this article we work through an example, list all the switching costs and describe how the process works. Current rates of all banks are in the mortgage comparison.

When to consider refinancing

Switching is worth a look if:

• you have a fixed rate at least half a percentage point above today’s offers,
• you have a variable rate with a high margin, because the loan was taken out when banks charged higher margins,
• you still have at least a few years left on the loan, since the saving builds up with every payment,
• your situation has improved (higher salary, less debt), so you would get better terms today.

How big the differences between banks are is shown in our study What does choosing the wrong bank cost?: for a €150,000 loan over 20 years, the gap between the cheapest and the most expensive bank was more than €14,000.

Example: Maja moves her loan to another bank

In 2023 Maja took out a mortgage at a fixed rate of 4.5%. Today she still owes €120,000 with 15 years to go. Another bank offers her a fixed rate of 3.6% if she opens an account there and has her salary paid into it.

Calculation: annuity payment, 180 months, no account fees. Switching costs: early repayment fee to the old bank €1,200 (1% of principal), arrangement fee €500, valuation €300, notary €430, removing the mortgage €150 and court fee €50.

By refinancing, Maja saves about €7,100. Her payment is €54 a month lower, so she earns back the switching costs in about four years. Everything after that is pure saving.

With a variable rate there would be no fee to the old bank. The costs would be around €1,400 and she would earn them back in just over two years.

You can work out your own case in the loan calculator: enter the remaining debt, the remaining term, your current and the new rate, and compare the two payments.

Watch the gap between existing customers and new ones

Banks publish a lower rate for existing customers, meaning people with a current account there that receives their salary. For 15-year mortgages, on 19 October 2026 this gap was 0.5 to 1 percentage point at most banks.

When you move your loan, you start as a new customer at the new bank. You only get the lower rate once you move your salary there too. If Maja stayed a non-customer and got 4.6%, her payment would be higher than at her old bank and switching would only cost her money. So when comparing, always check which status the offered rate applies to. More in Existing customer status on a loan.

Moving your salary also means you will probably close your account at the old bank and set up standing orders and direct debits on the new one. Also factor in the monthly fee for the new account or package.

All switching costs

Arrangement and valuation fees are from the price lists of the banks we track (as of 19 October 2026). Notary costs follow the notarial tariff, the court fee the Court Fees Act. The fee for the mortgage release differs between banks.

The fee to the old bank is capped by law: at most 1% of the principal repaid early if more than a year of the contract is left, and at most 0.5% if less. With a variable rate the bank may not charge it, and some banks don’t charge it on a fixed rate either. Your contract says what applies to you. With a combined interest rate the fee only applies if you repay during the fixed-rate period. Details are in Early loan repayment.

Some banks cover part of the costs when you move a loan to them, for example the valuation or the arrangement fee. Ask before you sign.

How moving a loan works

1. The old bank tells you how much you owe. Ask it in writing for the balance on a given date and for the early repayment fee.
2. Collect offers from at least two banks. Compare the APR, not just the interest rate, and check whether the offer is for existing customers.
3. The new bank checks your creditworthiness. It needs proof of income, the old loan contract, a statement of the remaining debt and a valuation. Check how much a bank can lend you in the credit capacity calculator.
4. You sign the new contract and the security agreement at the notary.
5. The new bank pays the money to the old bank. The old loan is then repaid.
6. The old bank issues a release, on the basis of which the notary files for removing the old mortgage, and the new one is entered in the land register.
7. Sort out insurance. Property insurance and any life insurance must be assigned to the new bank.

From application to removing the old mortgage usually takes four to eight weeks. During that time you keep paying the old loan.

Ask your own bank first

Before you switch, take the best offer to your own bank. Some banks are willing to lower the rate with an annex to the contract rather than lose a customer. That way you avoid the notary, the valuation and a new mortgage, although the bank may charge a fee for the annex.

If your bank doesn’t offer comparable terms, the other offer in your hand makes the decision clear.

When refinancing doesn’t pay off

• Only a few years are left on the loan, so the saving doesn’t cover the costs.
• The rate difference is smaller than about 0.3 percentage points.
• The new bank only offers the low rate together with an expensive card or insurance.
• Your creditworthiness has worsened, so the new bank would offer worse terms or even turn you down.

A quick rule of thumb: divide the switching costs by the monthly saving. If you get less than 36 to 48 months and have much longer left on the loan, switching usually pays off.