Does it pay to move your mortgage to another bank?
Euribor is the same at every bank — only the margin differs. Enter your remaining balance and margin: we work out the monthly saving, when the costs pay back and what is left over the whole term.
The average margin on new mortgages in August 2026 was 1,5 % (a year earlier 1,5 %), per Eesti Pank. If yours is noticeably higher, it is worth asking.
What the costs are made of
| Cost | Usually | When it is 0 |
|---|---|---|
| Early repayment compensation to the old bank | up to 3 months of interest (120 000 € at 4.5 % — 1 350 €) | if you give the bank notice (1–3 months depending on the bank); one bank never charges it |
| Valuation report | a Tallinn flat 280–360 €, a house 425–480 € | if a bank campaign covers it; updating a report under a year old costs 50–90 % of the price; one bank does its own valuation for 150 € |
| New bank contract fee | 0.3–1 % of the amount, at least 100–300 € (120 000 € — 360–1 200 €) | in campaigns at some banks for loans over 100 000 € |
| Notary | the agreement on which claims the mortgage secures: about 210 € for a 150 000 € mortgage; higher from 2027 | if a bank pays in a campaign; bill 864 SE would drop the notary — not adopted yet |
| Land register state fee | half the rate on 2/3 of the mortgage: 150 000 € — 55 € | does not go away; campaigns do not cover it |
| Insurance, account | home insurance stays, the beneficiary changes; account 0–1.30 € a month | usually 0 |
Since 2023 the mortgage passes from bank to bank by digital signature; a notary is needed only for the agreement on secured claims. Valuation: EU rules let a bank accept a desktop valuation, but for refinancing banks publicly ask for a full valuation report.
How it works
The new bank checks your income again and orders a new valuation, signs a new loan agreement, repays the old loan, and the old bank hands the mortgage over (by digital signature since 2023). A notary is needed for the agreement on secured claims; bill 864 SE, which would drop it, is still in the Riigikogu.
When you repay a variable-rate loan early, the bank may charge up to three months of interest (Law of Obligations Act § 411). Banks waive it if you give notice (1–3 months depending on the bank).
Banks lure switchers with campaigns: they cover the notary and valuation or waive the contract fee. Then the costs pay back fast.
Before you move, ask your own bank for a lower margin — another bank's offer is the best argument. Changing the terms usually costs 0.5–1 % of the balance.
Frequently asked questions
- Does it pay to move a mortgage to another bank?
- Yes, if the margin difference is at least 0.4–0.5 percentage points, many years of the loan are left and most one-off costs can be avoided (a bank campaign, three months' notice). With all fees the move costs 2.5–3 % of the balance and then takes years to pay back.
- What is the average mortgage margin now?
- The average margin over Euribor on new home loans in August 2026 was 1,5 % (Eesti Pank).
- What does refinancing cost?
- An early repayment fee (up to three months of interest, usually 0 with three months' notice), a valuation (about 250–325 €), a new contract fee (up to 1 %, often 0 in campaigns), the notary and the state fee for changing the mortgage.