How to Refinance a Mortgage in Singapore
Updated: 17 Nov 2025
Refinancing your mortgage can help reduce monthly payments, shorten your loan term, or give you access to your home's equity.
The information on this page is for educational and informational purposes only and should not be considered financial or investment advice. While we review and compare financial products to help you find the best options, we do not provide personalised recommendations or investment advisory services. Always do your own research or consult a licensed financial professional before making any financial decisions.
Singsaver tip
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Refinancing involves taking out a new mortgage to replace your existing one, often requiring you to cover closing costs and additional fees.
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Before you begin, define your objective, whether it’s securing a lower interest rate, accessing your home’s equity, or accelerating your loan payoff.
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As with obtaining an original mortgage, it's wise to do your research and compare offers from multiple lenders to find the most competitive refinance rate.
What is home refinancing all about?
In a nutshell, refinancing your home loan is switching from your current home loan to an entirely new one, usually from a different bank or financial institution. Alternatively, you'll also be refinancing if you're switching from an HDB concessionary housing loan to a bank loan.
These are a few reasons why you should refinance your home:
Lower your monthly payment
It goes without saying that refinancing is usually a strategic move on the homeowner’s part to enjoy more savings and hopefully free up cash flow. This is achieved by getting a new home loan package with a lower interest rate and potentially lower monthly loan repayments as well.
» MORE: Fixed vs floating home loan rates
Pay off your loan faster
Switching from a longer loan tenure to a shorter loan tenure helps you pay down your mortgage faster and save on interest. But, as a result, your monthly payment will likely be higher.
Access your home’s equity
A home equity loan, also known as cash-out refinancing, comes in handy if you find yourself in debt or in urgent need of cash. You can use your property as collateral to loan a substantial sum of money if the loan is approved.
But it’s important to note that this option is only possible for private properties.
Singsaver tip
If you need to borrow money using the equity you’ve built up in your home, you can consider getting a home equity loan. This allows you to draw on your home equity as needed.
Reduces loan insurance costs
Refinancing may trigger a reassessment of your insurance coverage based on your new loan terms, which can result in a lower premium. This is especially true if you have acquired a more favourable interest rate when you refinance your loan.
If you're covered under the Home Protection Scheme (HPS), your coverage is automatically adjusted when your loan quantum or repayment period is reduced.
But if you’re under an HPS exemption and are using a Mortgage Reducing Term Assurance (MRTA) insurance, it’s important to check its policy to see if it covers refinancing.
Consolidate debt
If you're currently juggling multiple high-interest debts, refinancing your home loan can offer a practical solution through debt consolidation. When you combine your existing debts into a single loan, you can simplify your repayments and gain better control over your monthly finances.
Debt consolidation loans generally come with much lower interest rates compared to unsecured lending options. However, qualifying for a debt consolidation loan depends on factors such as your creditworthiness and remaining debt servicing capacity. Ensuring a solid credit score and manageable debt levels improves your chances of approval.
How does refinancing a home loan work?
When you refinance, you’re not buying a new property — you’re simply taking out a new home loan from another bank or financial institution to replace your existing one. The new loan will pay off your current mortgage and may come with different terms, interest rates, or repayment periods.
If you’re currently on an HDB concessionary loan, you can refinance it with a bank or private lender for potentially better rates. However, the reverse isn’t allowed — once you’ve switched to a bank loan, you can’t refinance it back to an HDB loan.
Much like applying for an original mortgage, refinancing requires submitting an application, going through approval and underwriting, and completing the loan closing process. The new lender pays off the old mortgage, and you begin making payments on the new loan.
Best home loan rates for refinancing in 2025
If you're thinking of refinancing, comparing the latest mortgage rates is a great place to start. Even a small reduction in your interest rate can translate to substantial savings over your loan tenure.
Below are some of the most competitive refinancing packages currently offered by major banks in Singapore:
Fixed-rate refinance packages
|
Bank |
Interest rate (year 1–2) |
Lock-in period |
Notes |
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Bank of China |
2.35% |
3 years |
Green Mortgage Package |
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Standard Chartered |
2.28% |
2 years |
Promotional offer (Must deposit S$200,000 fresh funds for 6 months) |
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DBS |
2.38% |
2 years |
Standard fixed-rate package |
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Maybank |
3.30% |
2 years |
Requires minimum loan size of S$100,000 |
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OCBC |
2.38% |
2 years |
Standard fixed-rate package |
Floating-rate refinance packages
|
Bank |
Interest rate (year 1) |
Peg |
Lock-in period |
Notes |
|
DBS |
3M SORA + 0.60% |
3M SORA |
2 years |
Standard floating-rate package |
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OCBC |
3M SORA + 4.30% |
3M SORA |
2 years |
Standard floating-rate package |
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Maybank |
3M SORA + 0.70% |
3M SORA |
2 years |
Standard floating-rate package |
|
Standard Chartered |
3M SORA + 0.80% |
3M SORA |
2 years |
Standard floating-rate package |
» MORE: Check out the best home loan rates in Singapore in 2025
Refinance your home loan with confidence
Looking to secure a lower interest rate or reduce your monthly repayments? Compare the latest home loan refinancing packages in Singapore and find one that best fits your financial goals.
When to refinance your home loan?
Refinancing makes the most financial sense when current mortgage rates are lower than what you’re paying now. A smaller interest rate means lower monthly payments and less total interest over your loan term.
That said, refinancing isn’t always just about chasing lower rates. You might do it to switch loan types, remove mortgage insurance, or even extend your loan tenure for more flexibility. Always weigh the costs such as legal, valuation, or processing fees, to ensure you’re truly saving in the long run.
While you can’t control market rates, you can influence your own refinancing power. If your credit score has improved since your first loan, or your property value has increased, you could qualify for better offers and lower rates.
» MORE: See today’s refinance rates
Here are some common situations where refinancing your home loan could make financial sense.
Your lock-in period is ending
Most home loans in Singapore have a lock-in period — usually two to three years — during which you’ll be charged a penalty if you switch lenders early. To avoid extra fees, start exploring new packages about four months before your lock-in ends.
You can technically refinance mid-way through your lock-in, but the penalty fees may eat into your savings. Only do so if the new rate is significantly lower and the long-term savings outweigh the upfront costs.
Extend the loan term
If you're looking to ease your financial burden, refinancing to a longer loan term could help minimise your monthly payments. However, it's important to note that the maximum loan term varies by property type. For HDB flats financed through a bank, you can generally expect a maximum loan tenure of up to 30 years. For private residential properties, the maximum tenure is up to 35 years, subject to your age and lender’s assessment.
While extending the loan term lowers monthly payments, it may also increase the total interest paid over the tenure of the loan. Therefore, before refinancing, consider other alternatives for lowering your monthly mortgage payments and carefully weigh the pros and cons of each approach.
» MORE: How to minimise your home loan costs
A step-by-step guide on how to refinance a home loan in Singapore
Thinking of refinancing your mortgage? We give you a step-by-step guide on how to approach it with confidence:
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Define your refinancing objective: Start by identifying what you hope to achieve. Are you looking to lower your monthly repayments or switch to a shorter loan tenure? Knowing your goals can help you select a suitable refinancing option.
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Compare lenders for the best rates: Visit comparison sites like SingSaver. It allows you to see all the different home loan packages offered by banks in one go. If you’re out of your lock-in period and you’re able to maximise savings, it could be in your best interest to refinance.
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Choose a refinance lender: Once you have narrowed down your search, take time to review and compare the loan terms, interest rates, fees, and closing costs. This will help you determine which offer gives you the best value.
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Calculate the necessary costs: Now that you’ve decided to refinance, the next best move is to calculate and prepare the upfront costs that come with the refinancing process. Fees may vary depending on the bank, so budget accordingly.
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Submit your loan application: This is when the paperwork comes in, as the bank would need to assess your financial background before they can approve your loan. You would need to provide a wide range of documents, such as your CPF contribution history and bank loan statements, among others. Once you’ve submitted the required documents, all that’s left to do is wait for the loan approval from your bank of choice.
» MORE: Home loans in Singapore (2025): Best mortgage rates to consider
Find your ideal home loan
Discover home loans in Singapore that provide the financial support you need for your new home, all while fitting seamlessly with your current financial situation.
Frequently asked questions about refinancing a mortgage in Singapore
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Fixed-rate loans keep your interest rate the same for a set period, typically two to three years.
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Floating-rate loans are pegged to the 3M SORA rate, so your monthly repayments can rise or fall based on market conditions.
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Legal fees: Around S$2,000 to S$3,000 for processing and documentation
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Valuation fees: Around S$300 to S$500 to assess your property’s market value
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Discharge or cancellation fees: Typically 0.75% to 1.5% of your outstanding loan amount if you refinance during your lock-in period
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Administrative fees: Vary depending on the bank
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Refinancing means switching your home loan to a different bank for better interest rates or loan terms.
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Repricing means staying with your current bank but changing to a different loan package it offers.
Most home loans in Singapore come with a lock-in period of about two to three years. During this time, you’ll be charged a penalty — usually around 1.5% of your outstanding loan amount — if you refinance or fully repay your loan early.
If you’re planning to refinance, it’s best to start comparing new packages around three to four months before your lock-in ends. This gives you enough time to find a suitable deal and avoid unnecessary fees.
Currently, most home loan rates in Singapore range between 2.3% and 3.5% per annum, depending on whether you choose a fixed-rate or floating-rate package.
Refinancing usually comes with a few upfront costs. These may include:
Some banks may offer cash rebates or subsidies to offset these costs, so it’s worth checking before applying.
Refinancing and repricing both help you save on your home loan, but they work differently.
Refinancing can offer bigger savings since other banks may give more competitive rates, while repricing is simpler and often comes with lower fees.
Refinancing may cause a slight, temporary dip in your credit score because the bank will perform a credit check during your application. However, your score typically returns to normal within a few months as long as you continue making payments on time.
There’s no limit to how many times you can refinance your home loan in Singapore. Most homeowners refinance every two to three years, often after their lock-in period ends or when interest rates drop.
It’s important to consider the costs each time to ensure that refinancing actually leads to overall savings.
Latest reads on home loan refinancing
Stay up to date with the best refinancing tips, compare the latest mortgage rates, and learn how to save more on your home loan — all crafted to help Singapore homeowners make smarter financial decisions.