What is Home Loan Refinancing in Singapore?

In Singapore, refinancing a mortgage or home loan means switching your existing home loan from your current bank to another bank (or a new loan package from the same bank, which is called repricing) to enjoy better terms, typically lower interest rates or improved loan features.

Refinancing home loans in Singapore can be a great way to save money, but many homeowners hold misconceptions that prevent them from making informed decisions. Here are some of the most common misunderstandings around refinancing:

1. “I can’t refinance until my lock-in period ends.”

In reality, you can refinance during the lock-in period, but it may incur penalties—usually around 1.5% of the loan amount. However, in some cases, the savings from a lower rate outweigh the penalties, especially if interest rates have dropped sharply.

2. “Refinancing is the same as repricing.”

Refinancing a home loan involves you switching to a different bank. However, repricing is just you switching to a new loan package within the same bank. Many think they’re interchangeable, but repricing is usually easier, faster, and has lower costs—though it may not offer the best rates compared to refinancing.

3. “The interest rate is all that matters.”

When considering home loan refinancing, you should not just look at interest rates. You should also compare: lock-in periods, free conversion options, legal subsidies, penalties for early repayment, interest rate structure after the promotional period (because a low headline interest rate might mask high follow-on rates or strict terms).

4. “Refinancing is expensive.”

Yes, there are refinancing upfront costs (legal and valuation fees, ~$2,000–$2,500), but many banks subsidise these costs fully or partially—especially for loans above $250K. If you refinance your mortgage smartly, you could still come out ahead after costs.

5. “I just refinanced a few years ago, so I shouldn’t do it again.”

Refinancing can be done every 2–3 years, as long as you’re out of the lock-in or clawback period. With rates fluctuating, it’s worth reviewing regularly—especially if your fixed rate is expiring.

6. “I don’t qualify because my income or property value has changed.”

Even if your financial situation has changed, you might still qualify for refinancing—especially if your loan-to-value ratio (LTV) is low or you’ve built equity. Banks assess risk differently.

7. “Floating rates are always cheaper.”

Not always. While floating rates (like those pegged to SORA) start lower, they can rise significantly over time. Fixed-rate packages offer stability, which may suit risk-averse borrowers better.

8. “I can refinance investment property loans the same way.”

Refinancing rules and rates may differ for investment vs. owner-occupied properties. Some banks impose different criteria or offer fewer subsidies for investment units.

How to Refinance my Mortgage in Singapore?

Here’s how refinancing works in Singapore, step-by-step:

Current Home Loan

Check your current home loan’s Lock-in Period. Most home loans come with a 2- to 3-year lock-in period - meaning you’re contracted and obliged to stay with the current plan for the entire duration (in layman terms, you promised your bank home loan girlfriend you’ll be with her for 2 to 3 years without breaking up). Refinancing during this period may incur penalties (commonly 1.5% of the loan amount).

Check for Legal Subsidy Clawbacks. If your current bank offered a you legal subsidy previously, you may need to repay it if you refinance within 3 years (in layman terms, you want to break up but need to return your stingy boyfriend all the Louis Vuitton handbags he gave you at the start of your relationship).

Ok, birds and bees aside, you need to call your bank and check for these serious stuff, too:

• Remaining loan tenure and balance
• Current interest rate
• Any upcoming changes (e.g. from fixed to floating rates)
• Total monthly repayment
• Compare new packages from other banks:
• Fixed rate vs Floating rate (SORA-pegged rates are common now)
• Interest rates and promotional perks
• Lock-in periods and terms

Refinancing Fees Involved

Many Singaporeans use mortgage brokers (free to the borrower) to compare and handle paperwork. You can also directly approach banks. A law firm (from the bank’s panel) will handle the legal transfer. A property valuation is required (usually around $300-$500). Legal fees range from $2,000–$2,500, but some banks offer legal subsidies ($2,000) for refinancing. The new bank pays off your existing loan. Your new mortgage starts under the new terms.

So, why refinance your home loan? Refinancing is pursue a lower interest rate so you end up saving money with your monthly mortgage repayments. Sometimes, when interest rates are volatile, you might want to switch from floating to fixed rates (or vice versa). For some people, they refinance to change their loan tenure for better cash flow management. Finally, there’s this thing called “cash-out refinancing” in Singapore where homeowners refinance to access equity cash-out (if their property value has appreciated).

7 Best Home Loan Refinancing Rates Singapore 2025

Homeowners often look for the most competitive refinancing rates to reduce their monthly repayments. As of April–May 2025, refinancing your home loan in Singapore can offer significant savings, with fixed rates starting as low as 2.30% and floating rates beginning around 2.79%, depending on the bank and loan package.

Fixed-Rate Refinancing Packages (2-Year Lock-In)

• Bank of China (Green Mortgage): 2.40% for the first two years, then 2.45% in year 3, and 3.90% in year 4.
  Promotional 2-Year Fixed Flexi (with $200K deposit): 2.42% for the first two years, then 3.80% in year 3, and 4.00% in year 4.
• DBS: 2.60% for the first two years, then 3.40% in year 3, and 3.90% in year 4.
• Maybank: 2.55% for the first two years, then 4.00% in years 3 and 4.

Floating-Rate Refinancing Packages (SORA-Pegged)

• CIMB 3M SORA: 2.79% for the first two years (3M SORA + 0.45%), then 3.34% in year 4 (3M SORA + 1.00%).
• OCBC 3M SORA: 2.84% for the first two years (3M SORA + 0.50%), then 3.34% in year 4 (3M SORA + 1.00%).
• DBS 3M SORA: 2.94% for the first two years (3M SORA + 0.60%), then 2.99% in year 3 (3M SORA + 0.65%), and 3.34% in year 4 (3M SORA + 1.00%).
• HSBC 3M SORA: 2.87% for the first two years (3M SORA + 0.65%), then 3.22% in year 4 (3M SORA + 1.00%).