Bank refinancing rates start from 1.50% p.a. (fixed) and SORA+0.25% (floating). HDB concessionary loan rate is 2.6%.
Refinancing a home loan is one of the most effective ways to reduce monthly mortgage payments and save
tens of thousands of dollars over the life of a loan. This
page covers everything there is to know about refinancing in Singapore: how it differs from repricing,
when refinancing makes financial sense, the costs & common
fees, eligibility requirements including TDSR rules and a breakdown of the entire process. It also
explains the key considerations for HDB flat owners switching
from an HDB concessionary loan to a bank loan and how private property owners can access home equity
through cash out refinancing.
Whether the goal is to secure a lower interest rate, switch from fixed to floating or restructure your
loan tenure this page provides the information needed to make a more informed decision.
Refinancing is the process of replacing an existing home loan with a new one from a different bank. The new bank pays off the old loan and issues a new mortgage — typically with a lower interest rate, different loan structure, or better features. Refinancing is commonly done when lock-in periods end and homeowners want to take advantage of lower market rates.
Credit score affects approval and rate offered. Good repayment history improves chances.
Most banks require 2 to 3 months notice to the existing bank before the loan can be transferred
Bank refinancing rates start from 1.50% p.a. (fixed) and SORA+0.25% (floating). HDB concessionary loan rate is 2.6%.
A 1% rate reduction on a $500,000 loan saves approximately $220 per month or $2,640 per year. Over 10 years, that's $26,400+.
Most banks offer $2,000 to $2,800 in legal fee subsidies for refinancing. Additional cashback may also be available.
Start comparing 4 to 6 months before lock-in ends. The refinancing process typically takes 3 to 4 months to complete.
10+ banks compared $2.5B+ mortgages facilitated MAS verified lenders only| Refinancing | Repricing | |
|---|---|---|
| Definition | Switch loan to a different bank | Switch package within same bank |
| Interest Rates | Access to "acquisition rates" typically lower | "Retention rates" may be 0.1% to 0.3% higher |
| Timeline | 3 to 4 months | 1 month |
| Legal Work Required | Yes | No |
| Valuation Required | Yes | No |
| Costs | $2,000 to $3,000 (often subsidised) | $500 to $1,000 (admin fee) |
| Lock-In Period | New 2 to 3 year lock-in | May be shorter or none |
| Loan Options | Access to all banks' packages | Limited to current bank's packages |
| Documentation | Full application with income docs | Minimal — internal bank process |
| Best For | Larger loans above $300k, maximising savings | Smaller loans below $300k, convenience |
| Flexibility | Full market access | Limited to one bank's offerings |
Outstanding loan is above $300,000
Current bank's retention rates are not competitive
Wanting access to features current bank doesn't offer
Planning to stay in property for 3 plus more years
Comfortable with a longer process usually between 3 to 4 months
Willing to do paperwork for maximum savings
Outstanding loan is below $300,000 Current bank offers competitive rates Preferring a quick and simple process Wanting to avoid legal fees and valuation Needing rate reduction within 1 month Planning to sell property soon | Option | New Rate | Annual Savings | Costs | Net Savings (3 years) |
|---|---|---|---|---|
| Refinancing | 2.7% (Bank B) | $4,900 | $2,000 (subsidised) | $12,700 |
| Repricing | 3.0% (Same bank) | $2,800 | $800 | $7,600 |
For larger loans refinancing typically offers significantly better savings despite higher upfront costs.Banks typically offer lower "acquisition rates" to attract new customers and higher "retention rates" to keep existing ones. This pricing gap often 0.1% to 0.3% is sometimes called the "loyalty tax."
On a $1 million loan that difference can cost an extra $2,000 per year. For larger loans above $300,000 refinancing to a new bank almost always makes more financial sense than repricing with the current bank. For smaller loans below $200,000, the legal and valuation fees may outweigh the savings making repricing the more practical choice. The key is to calculate the total savings against total costs before deciding.
1% rate difference on $400k = $3,600/yr savings
Over 10 years, this exceeds $36,000 in savings
This decision is irreversible| HDB Concessionary Loan | Bank Loan (After Switch) | |
|---|---|---|
| Interest Rate | 2.6% p.a. (fixed) | From 1.50% p.a. (fixed) or SORA+0.25% (floating) |
| Rate Stability | Extremely stable (unchanged 20+ years) | Fixed for 2 to 5 year then floating OR floating from start |
| LTV After Switch | N/A | Up to 75% |
| Lock-In Period | None | 2 to 3 years |
| Early Repayment Penalty | None | 1.5% during lock-in |
| Partial Prepayment | Allowed anytime | May be limited during lock-in |
| Rate Fluctuation Risk | None | Yes |
| Can Switch Back? | N/A | Irreversible |
| TDSR Applies? | No (exempt) | Owner-occupied: exempt for refinancing / Investment: applies |
Some banks may be flexible depending on current property valuation. Check with individual banks.
1% rate difference on $400k = $3,600/yr savings Over 10 years, this exceeds $36,000 in savings This decision is irreversible Some banks may be flexible depending on current property valuation. Check with individual banks. Important Considerations| Cost Item | Refinancing | Repricing |
|---|---|---|
| Legal fees | $1,800 to $2,500 | Not required |
| Valuation fee | $300 to $600 | Not required |
| Administrative fee | $0 to $500 | $500 to $1,000 |
| Total Costs | $2,100 to $3,600 | $500 to $1,000 |
| Legal subsidy from new bank | $2,000 to $2,800 | Not applicable |
| Net Cost After Subsidy | $0 to $1,000 | $500 to $1,000 |
Important Considerations
Lock-In Penalty The penalty almost always exceeds potential interest savings. Wait for lock-in to end before refinancing. 
TDSR Exemptions for Refinancing| Property Type | Owner-Occupied | Investment |
|---|---|---|
| Refinancing (same or lower loan amount) | Exempt | Exempt |
| Refinancing with cash-out | Applies | Applies |
| Repricing (same bank) | Exempt | Exempt |
The penalty almost always exceeds potential interest savings. Wait for lock-in to end before refinancing. 
Refinancing an investment property without committing to debt reduction Increasing the loan amount through cash-out refinancing Taking a new loan not refinancing an existing one
With rates at multi-year lows and SORA around 1.1% to 1.2%, 2026 is an excellent time to refinance. Here's practical advice for different situations:
For HDB owners on bank loans: The promotional rate from 2-3 years ago has likely expired. Compare rates now, a 0.5% to 1% reduction is common and translates to significant savings.
For HDB owners on HDB loans (2.6%) : Bank rates are now well below 2.6%. The decision to switch is significant because it's irreversible. Calculate savings, consider rate fluctuation risks and decide based on personal risk tolerance.
For private property owners: Beyond rate shopping, consider whether cash out refinancing makes sense for investment or debt consolidation goals. Ensure any additional borrowing is within comfortable repayment capacity.
Rate tip: Don't just look at Year 1 rates. Check the spread after lock-in (Year 3+). A package with a lower Year 3 spread gives more buffer before the next refinance cycle.
Timing tip: Don't wait until the last minute. Start comparing 4 to 6 months before lock-in ends. Banks need 2 to 3 months to process and there's often a "lag cost" of paying the higher rate while waiting for the switch.
Rate tip: Don't just look at Year 1 rates. Check the spread after lock-in (Year 3+). A package with a lower Year 3
spread gives more buffer
before the next refinance cycle. 
| Outstanding Loan | Monthly Savings | Annual Savings | 3-Year Savings |
|---|---|---|---|
| $200,000 | $130 | $1,560 | $4,680 |
| $400,000 | $260 | $3,120 | $9,360 |
| $600,000 | $390 | $4,680 | $14,040 |
| $800,000 | $520 | $6,240 | $18,720 |
| $1,000,000 | $650 | $7,800 | $23,400 |
The penalty almost always exceeds potential interest savings. Wait for lock-in to end before refinancing. 
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Your home is going to be one of the biggest purchases you will ever make in your life.
A cash-out refinance is an option that replaces an old mortgage with a new home loan.
Refinancing consists of replacing a current loan with a new one that pays off the debt of the first loan.
Refinancing is when you fully repay your existing home loan or move your loan to a rival lender
Your decision to refinance your home loan can be due to certain common reasons such as taking cash out, getting a lower payment, or to shorten your mortgage term.
Most Singaporeans buy a HDB flat to live in it, that’s a fact.
Refinancing is not the only way to optimise a mortgage. For homeowners looking to access cash from their property's value without selling, home equity loans offer a way to unlock funds for personal or business investment needs. Home buyers purchasing a new property can compare home loan rates from 15+ banks .
For quick estimates on potential savings when switching to a lower rate, our refinance calculator compares current repayments against new rates and factors in costs to determine if refinancing makes financial sense.
For bank specific refinancing packages and features, reviews are available for local banks including DBS, OCBC and Maybank as well as foreign banks such as Standard Chartered, HSBC, Citibank and Bank of China.