# Lower your monthly mortgage costs: 5 ways

> Lower your monthly mortgage costs by refinancing, repaying extra, interest rate averaging or improving your energy label. See what works in your situation.

https://www.belderbrandt.nl/en/mortgage-advice/lowering-your-monthly-mortgage-costs · English

There are several ways to lower your monthly mortgage costs without moving house. You could refinance, make extra repayments, average your interest rate, adjust your mortgage or benefit from a lower risk category. Making your home more energy efficient can also affect what you pay each month. In this article we walk you through the main options, with concrete examples for your mortgage in Tilburg or the surrounding area.

## Refinance to a lower interest rate

Have you been stuck on a high rate for a while? Then [refinancing your mortgage](https://www.belderbrandt.nl/en/mortgage-advice/refinancing-your-mortgage) may be worth a look. On a €300,000 mortgage, a difference of 1 percentage point works out to roughly €3,000 in gross interest in the first year, before you account for repayments and other effects. Whether refinancing actually pays off depends on current rates, the time left in your fixed-rate period, any penalty you may owe and the costs of refinancing itself.

Do watch out for the penalty you may owe if you are still within your fixed-rate period. Under certain conditions that penalty can be tax-deductible, insofar as it relates to the part of your loan that qualifies for mortgage interest deduction. Always run the numbers to check that the savings outweigh the penalty and the other costs of refinancing.

## Adjust your repayment type

Not every repayment type still fits your situation. If you have a linear mortgage with high monthly payments in the early years, switching to an annuity mortgage can spread the payments more evenly (and lower them for now). Extending the remaining term also reduces your monthly repayment: on a €250,000 mortgage with 15 years to go, extending to 20 years can easily save you anywhere from a few tens of euros to a few hundred euros per month, depending on your current payments. Bear in mind that you will pay more interest in total over the long run, so this mainly makes sense when you need some breathing room right now.

## Make extra repayments

With almost every lender you can repay at least 10 percent of the original principal each year without penalty. On a €300,000 mortgage, that is €30,000 per year. Extra repayments reduce your outstanding debt, and with it the interest you pay on it. Sometimes your risk surcharge drops as well, as the ratio between your mortgage and the value of your home improves. According to the Dutch consumers' association (Consumentenbond), that can make a difference of up to 0.5 percent in your interest rate.

## Interest rate averaging

Stuck on a high rate with years still to go in your fixed-rate period? Then interest rate averaging can be an alternative to a full refinance. With interest rate averaging, the penalty for adjusting your rate early is rolled into a new interest rate. Whether it is available, and whether it pays off, differs per lender. Have the options laid out side by side before you decide.

## A better energy label, a lower rate

An energy-efficient home can qualify for an interest rate discount with some lenders. There is also extra borrowing room for energy-saving measures, and in 2026 the Dutch National Mortgage Guarantee (NHG) applies a higher limit of €498,200 when you qualify for it. Which discount and how much extra financing you actually get differs per lender and situation.

Still looking for a house in Tilburg, by the way? With our purchase guidance, clients regularly buy below the appraised value, which often means the buying costs can already be covered by the equity you start out with. Lower monthly costs then start at the purchase itself, before your mortgage is even in place.

**From our experience: Student debt like a millstone, while the money was already there**

We once had a client who had never really taken a hard look at their own situation. They wanted to move and had equity in their home, an existing mortgage at a high rate, two student loans with seven years left to run, a lease car and a personal loan. When we saw the draft purchase agreement, it turned out the new home also came with a rented central heating boiler. Because there was plenty of equity, we used the equity from the old house to pay off the personal loan, clear both student loans, buy out the boiler contract and buy out the car lease. As a result, the client could ultimately borrow more for the new home, paid a lower rate than on the old one and moved to a different bank. That student debt had been hanging around the client's neck like a millstone, while there was actually more than enough money to clear it. The client now has a much simpler, more structured financial picture, and pays less in total than before, despite buying a more expensive house.

## What we can do for you

Wondering what is possible in your situation? Whether you want to refinance, are considering extra repayments or simply want to know if interest rate averaging makes sense for you: we are happy to take a look with you, no strings attached. Call us on 06 52 69 88 22 or email Martin@belderbrandt.nl for a no-obligation consultation. We are based in Tilburg, we know the region, and we will bring you up to speed quickly.