Refinancing a loan (refinansowanie kredytu)

Repaying your current loan with a new loan, usually at another bank, on better terms — e.g. with a lower margin or a different type of interest rate.

The new bank assesses your creditworthiness again and values the property, and the mortgage has to be established anew. Refinancing pays off when the saving on the instalment covers, within a reasonable time, the costs of switching: the valuation, court fees, bridging insurance and any compensation for your current bank.