When your mortgage's fixed interest rate period (Zinsbindung) expires, you face one of the most important financial decisions of your homeownership journey. The remaining loan balance doesn't disappear — it needs new financing at a new interest rate. This process is called Anschlussfinanzierung (follow-up financing), and getting it right can save you tens of thousands of euros.
Many homeowners simply accept their existing bank's renewal offer without shopping around, leaving significant money on the table. This guide explains all your options, provides actionable strategies for securing the best rate, and helps you decide which refinancing approach is right for your situation.
Before exploring your options, let's understand the key factors that determine your refinancing terms:
The good news: refinancing often puts you in a stronger position than your original mortgage. You've been making payments for years (proving reliability), your LTV has improved through repayment and property appreciation, and you've built a longer SCHUFA history. These factors typically qualify you for better rates.
The simplest path: your current bank sends you a renewal offer (Prolongationsangebot), typically 3-6 months before your Zinsbindung expires. You agree to a new interest rate for another fixed period, sign some paperwork, and continue as before.
My recommendation: Always get your bank's Prolongation offer, but treat it as a starting point, not the final answer. Use it as a baseline for comparison with other options.
Umschuldung means transferring your remaining mortgage balance to a different bank that offers better terms. This is more common than many homeowners realize, and the process is simpler than most people expect.
The main cost is the Grundschuldabtretung — transferring the existing Grundschuld to the new bank rather than deleting and re-registering it. This costs approximately €300-€500 through the Notar and Grundbuchamt. In rare cases, a new Grundschuld registration is needed, costing approximately €1,000-€1,500.
Even small rate differences justify switching. On a €200,000 remaining balance, a 0.3% rate reduction saves €600/year or €6,000 over a 10-year Zinsbindung — far exceeding the one-time switching cost of €300-€500. A 0.5% reduction saves €10,000 over 10 years.
A Forward-Darlehen allows you to secure today's interest rates for a future refinancing — up to 60 months before your current Zinsbindung expires. It's essentially insurance against rising rates.
The bank charges a premium (Aufschlag) for each month of the forward period. This premium compensates the bank for the interest rate risk they're taking on. Typical premiums:
A Forward-Darlehen makes sense when: you believe rates will rise more than the forward premium, you value payment certainty over potential savings, your risk tolerance is low, and your Zinsbindung ends within 12-36 months (the sweet spot for forward premiums).
A Forward-Darlehen may not make sense when: you believe rates will stay flat or fall, the forward premium is very high, you can tolerate rate uncertainty, or you have significant savings that allow early repayment.
One of the most powerful borrower protections in German law is §489 BGB. After 10 years from the full disbursement of your loan, you have the unconditional legal right to cancel your mortgage with just 6 months' notice — regardless of the agreed Zinsbindung and without any Vorfälligkeitsentschädigung (prepayment penalty).
If you have a 15-year or 20-year fixed rate mortgage and market rates drop significantly after year 10, you can exercise your §489 right to cancel and refinance at the lower rate. This is a valuable option that many homeowners don't know about.
Example: You have a 15-year fix at 4.0%. After 10 years, market rates are 2.5%. You cancel under §489, wait 6 months, and refinance at 2.5%. On a €200,000 remaining balance, this saves €3,000/year or €15,000 over the remaining 5 years.
If both partners were on the original mortgage and one is buying out the other, the refinancing becomes more complex. The remaining partner needs to qualify for the full remaining balance on their income alone. A Grundschuldabtretung or new Grundschuld may be needed, and the exiting partner must be released from liability.
If you've recently changed jobs, especially if you're still in the probation period, this can complicate refinancing. Some banks require you to have been in your position for at least 6 months. Your existing bank may be more flexible since they know your payment history.
If you own property in Germany but have moved abroad, refinancing is still possible but more challenging. Fewer banks are willing to lend to non-residents, and documentation requirements increase. An experienced broker is essential in this situation.
Anschlussfinanzierung is one of the best opportunities homeowners have to improve their mortgage terms and save significant money. The combination of reduced LTV (from years of repayment), improved SCHUFA history, and genuine competition between 750+ banks means you're almost certainly qualified for better terms than your current bank's default offer.
Start early, compare broadly, negotiate firmly, and don't hesitate to switch banks if the numbers make sense. The €300-€500 cost of a Grundschuldabtretung is typically recouped within the first few months of a lower interest rate.
Start planning 12-24 months before your Zinsbindung expires. This gives you time to compare offers, potentially secure a Forward-Darlehen at favorable rates, and improve your financial profile if needed. Your current bank will typically send an offer 3-6 months before expiry — don't accept it without comparing.
Yes, you can switch banks (Umschuldung). The new bank handles most paperwork. The only cost is the Grundschuld transfer (Grundschuldabtretung, approximately €300-€500). Savings of 0.2-0.5% on interest rates often outweigh switching costs within the first year.
A Forward-Darlehen lets you lock in today's rates for a future refinancing. The cost is a small premium per month of forward period — typically 0.01-0.03% per month. For a 24-month forward, that adds approximately 0.24-0.72% to your rate, but protects against rate increases.