Thousands of people in Slovakia with mortgages may soon face a significant increase in their monthly payments. For many, the amount could rise by €180–250. We explain why this is happening and what to do about it.
Why mortgage rates are increasing
The main reason is the policy of the European Central Bank (ECB), which is raising key interest rates to fight inflation in the eurozone. When the ECB makes money "more expensive" for commercial banks, they, in turn, raise rates on loans for their customers, including mortgages.
While just a few years ago you could get a mortgage for 1-1.5%, new rates upon review (refixácia) are now fluctuating in the range of 3.5% – 4.5%. According to the National Bank of Slovakia, in 2025-2026, the fixation period will end for 28% of all mortgage borrowers in the country, making the problem widespread.
How much your payment will increase: an example
To understand the scale of the changes, let's look at a specific example. Imagine you borrowed €100,000 for 30 years.
Old payment. With a rate of 1.09%, your monthly payment was approximately €326.
New payment. With a new rate of 4.5%, the payment will increase to €507.
The difference is +€181 per month, or over €2170 per year. If your mortgage amount is higher, for example €150,000, the monthly payment could increase by €250 or more.
What to do when your fixation period ends
When your rate fixation period ends, your bank will offer you new terms. It is important not to automatically agree to the first offer. You have two main options:
Refixácia. You stay with your bank and agree to the new interest rate it offers. Often, this offer is not the best one on the market.
Refinancovanie. You contact other banks to find better terms and move your mortgage there. The new bank will pay off your debt at the old bank and give you a loan on more favorable terms.
Start researching offers from other banks 2-3 months before your fixation period ends. This will give you time to compare terms, gather documents, and make a well-informed decision that could save you a significant amount of money.
