How do I refinance my mortgage?
- complete guide
Many people consider refinancing their mortgage to get a lower interest rate, better terms or more financial flexibility. In this guide, we explain how mortgage refinancing works in practice, the role of valuation, why it can be worthwhile – and what you should consider before starting the process.
February 10, 2026
Eiendomsfinans
In a nutshell:
- Refinancing your mortgage means replacing your existing mortgage with a new one on better terms
- Valuation is important because the property value affects the interest rate you can get
- The process is about comparing offers and assessing total cost
- It often pays off when your home has increased in value or your finances have improved
Typical mistakes to avoid when refinancing:
- do not check updated property value
- focus only on monthly cost, not total cost or solution
- overlook establishment and registration fees
- forget binding time
- underestimate the effect of longer maturities
What is mortgage refinancing?
Mortgage refinancing means that you replace your existing mortgage with a new mortgage. This can be done at the same bank or by moving the loan to another bank.
The goal is usually to achieve a lower interest rate, better terms or a more flexible repayment plan based on the current property value and finances.
Refinancing a mortgage differs from a regular bank switch in that the terms are reassessed, often with a new valuation of the home.
Why refinance your mortgage?
Lower interest rate
Changes in the interest rate market or an increase in the value of your home may mean that you get a lower interest rate than before.
Better terms or repayment plan
Refinancing can result in a better interest rate, a shorter term, a grace period or a transition from fixed to floating interest rates.
Reduce monthly costs
By getting a lower interest rate or longer term, you can get better liquidity in everyday life.
Leverage increased property value
If the property has increased in value, a lower loan-to-value ratio (debt in relation to property value) can result in better interest rate terms.
How to refinance your mortgage - step by step
1. Check current interest rate and terms
Review your current interest rate, lock-in period and any refinancing fees.
2. Valuation - the key to better refinancing
Banks’ interest rate offers depend on the loan-to-value ratio (LTV). A recent valuation proves that the property has increased in value, which often results in a lower interest rate. We can help you with a valuation.
3. Collect the necessary documentation
Typically income, debt, tax returns and information about your home. We can help you retrieve much of this information electronically from public registers.
4. Compare offers
Look at interest rate, fees, flexibility, solution and total cost – not just the lowest rate.
5. Change bank or update loan agreement
When you accept an offer, the new bank takes over the loan or the existing bank adjusts the terms.
Refinancing doesn't always pay off, but in many cases it can result in significant savings.
It often pays off when:
- the home has increased in value and the loan-to-value ratio is lower
- the interest rate you have is higher than the market rate
- your finances have improved
- you want better terms or more flexibility
- you want to collect expensive small loans into one loan
It rarely pays off when:
- you have a fixed interest rate with high costs if you break the agreement
- set-up fees/other fees exceed the gain
- you already have a very low loan-to-value ratio (low debt in relation to property value) and a good interest rate
FAQ - Frequently asked questions about how to refinance your mortgage
Do I need a valuation to refinance my mortgage?
Often yes, especially if you want a better interest rate based on property value.
Can I refinance even if the interest rate has not gone up?
Yes, if you need more money, if your home has increased in value and your finances are sufficient.
How long does it take to refinance a mortgage?
Usually a week’s time, depending on bank and prompt documentation.
What documentation is required?
Income, debt, tax return and housing information.
Do I need to switch banks to refinance?
No, refinancing can also take place at the same bank.
Free and fast case management
With us, you will be assigned a dedicated advisor who will help you every step of the way. After
a pleasant conversation with you, we map out your financial situation.
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