The overlooked strategy that could save you thousands
“Why isn’t everyone doing this?”
That’s the exact question a client asked me after he discovered the thousands he could save by refinancing his home loan.
It’s a valid question.
Especially when we live in a time where the cost of living is soaring, and every euro saved matters.
Yet, even when presented with a crystal-clear financial opportunity, most people still don’t act.
Why?
Let’s dive into a true story to uncover one of the most underrated pieces of advice about personal finance—refinancing your home loan.
The Story: A Maisonette, a Mortgage, and a Missed Opportunity
A Maltese couple bought their maisonette 10 years ago for €150,000. Today, it’s worth at least €350,000. Sounds like a win, right?
But they’re not selling. And so, the real financial opportunity lies elsewhere—in refinancing.
Their current interest rate is 3.2%. Through some online research, they found out that local banks are offering fixed interest rates starting from 1% for a couple of years.
That’s a potential saving of €150 per month, which adds up to €7,200 over four years.
The catch?
There’s no obvious one.
Yet when they spoke to friends about it, the response was lukewarm at best.
And that got them thinking: Why is no one talking about this?
Why Refinancing Isn’t Mainstream (But Should Be)
In countries like the US, refinancing a mortgage is common practice.
In Malta? Not so much.
There’s a deeply ingrained belief here that once you take a home loan, you stick with the same bank until the loan ends.
But that mindset is costing people thousands.
Banks are businesses.
They compete.
And that competition creates opportunities for you.
Refinancing is one of the smartest pieces of advice about personal finance that’s still massively underused. But before you jump in, here’s what you should consider:
What You Really Need to Know About Refinancing
Let’s break it down—refinancing can save you money, but it does come with responsibilities and upfront costs:
- Notarial Fees – You’ll need a notary to conduct research again. This is usually your expense.
- Salary Transfer – Most banks will require you to move your salary payments to them.
- Property Revaluation – An architect needs to officially revalue your property. Sometimes banks cover this. Sometimes not.
- Bank Legal Costs – These are usually absorbed by the bank, but confirm before proceeding.
- Early Repayment Fees – If you’re thinking of paying off your loan quickly while the interest rate is low, check if the bank penalises early repayment.
- Insurance Conditions – Your new bank may require you to switch your insurance payments to go through them.
- Time and Effort – Expect 6 months to a year of admin, emails, signatures, and follow-ups. It’s not fast, but it’s worth it.
A Smart Alternative: Renegotiating with Your Current Bank
Before switching banks, try this first:
Walk into your current bank and ask to renegotiate your interest rate.
It might feel intimidating, but trust me—banks value loyal clients. They’d rather lower your interest rate than lose you to a competitor.
The Real Win: Becoming Proactive About Your Finances
This entire conversation isn’t just about refinancing.
It’s about taking control of your financial situation.
Most people follow the same financial routines for decades, never questioning if better options exist.
But sometimes, the most powerful advice about personal finance isn’t about earning more. It’s about becoming aware of the silent opportunities you’re missing.
In brief: Refinancing in Malta – Should You Do It?
- If your mortgage interest rate is over 2.5%, it’s worth researching alternatives.
- Look beyond the headline savings. Factor in admin fees, time, and long-term conditions.
- Don’t forget to negotiate with your current bank. You might get a better rate without moving anything.
- Remember: good financial advice is not always the loudest. Sometimes, it’s the least talked about tip that saves you the most.
If you’re unsure whether refinancing is the right move for you, or you simply want personalised advice about personal finance, let’s talk.
I offer 1:1 money coaching sessions where we break down your situation, explore the smartest options, and create a step-by-step plan for your goals.
📅 Book your free discovery session here
Author: Luca Caruana
———————— About the Author: Luca Caruana
Hi, I’m Luca, a Certified Money Coach, dedicated to helping individuals break free from limiting beliefs and build lasting wealth.
My proven strategies empower clients to break free from financial constraints and confidently navigate the world of money—whether it’s managing budgets, making savvy investments, or pursuing new financial opportunities.
With over a decade of hands-on experience in personal finance and mindset coaching, I’ve guided countless clients through the process of transforming their financial narratives. My approach combines deep psychological insights with practical financial tactics, ensuring that each client not only learns how to manage money effectively but also develops the mindset necessary to truly thrive. I’ve seen firsthand how a positive money mindset can be the game-changer that propels you toward financial freedom and a more fulfilling life.
Let me show you how to harness the power of your beliefs to create a future filled with opportunity and prosperity. Let’s talk and start transforming your financial future today.got time on your side.”