End of lock-in period
This is the most common refinance timing because penalties may no longer apply.
Refinancing guide
Refinancing Home Loan Singapore: When It Makes Sense
Refinancing can reduce your mortgage cost, but the right time depends on lock-in terms, legal costs, cash rebates, flexibility to prepay during lock in, flexibility to sell during lock in, or how soon you can convert the rates while in the lock in and how long you plan to keep the property.
Last updated: March 2026
What this page helps you do: decide whether switching banks is worth the cost and effort, or whether repricing or waiting is the better move.
Percent operates under FindAHomeLoan Pte Ltd (established 2014), supporting refinancing reviews across major local and foreign banks in Singapore.
Who This Guide Is For
- Homeowners nearing the end of a lock-in period
- Borrowers paying a rate that is now above market
- Owners deciding between repricing and refinancing
- People who want to understand whether switching banks is worth the effort or require specific benefits
Quick Answer
Refinancing usually makes sense when your current package is no longer competitive and the expected savings are larger than the switching costs.
The decision should not be based on headline rate alone.
You should compare:
- lock-in penalties
- clawback of subsidies
- legal and valuation costs
- expected monthly savings
- how long you plan to keep the property
When Refinancing Usually Makes Sense
Current rate well above market
If your package has rolled to a higher reversion rate, refinancing may reduce monthly cost.
Longer remaining holding period
The more years you expect to keep the property, the more time you have to recover switching costs.
Loan size still meaningful
Refinancing tends to matter more when the outstanding balance is still large enough for rate changes to create visible savings.
When refinancing may not be worth it yet
Lock-in is still expensive
Penalties and clawback can outweigh near-term savings.
You may sell soon
A short holding period reduces the value of switching.
Outstanding loan is already small
Rate savings may be too small to matter.
Repricing is already competitive
Sometimes staying with the same bank is simpler and good enough.
Refinancing vs Repricing
| Feature | Repricing | Refinancing |
|---|---|---|
| Stay with same bank | Yes | No |
| Legal work | Usually less | Usually more |
| Package choice | Limited to existing bank | Wider market choice |
| Admin effort | Lower | Higher |
| Best when | Current bank offers fair terms | Better market rates exist elsewhere |
Repricing may be simpler, but refinancing may offer wider package choice and stronger long-term savings.
Simple refinancing example
Loan balance: S$800,000
Current rate: 2.5%
New rate: 1.5%
Estimated difference: about 1.0%
Approximate annual interest saving:
S$800,000 x 1.0% = S$8,000 per year
This is only a simple illustration. Actual savings depend on amortisation, fees, lock-in terms, legal subsidies, and how long you keep the new package.
What Costs To Check Before Switching
| Cost / Clause | Why it matters |
|---|---|
| Lock-in penalty | Can cancel out savings if you refinance too early |
| Cash rebate clawback | Some subsidies may need to be repaid |
| Legal fees | Switching banks often involves legal work |
| Valuation fee | Some refinance cases require fresh valuation |
| Notice period | Timing matters if you want a smooth switch |
Refinancing Decision Checklist
Ask yourself:
- Am I already outside the lock-in period?
- Is my current rate now much higher than market rates?
- Is my outstanding loan still large enough for the savings to matter?
- Am I likely to keep this property long enough to recover the switching cost?
- Has my bank already offered a decent repricing option?
What Most Borrowers Get Wrong
- Comparing only the headline rate
- Ignoring reversion rate after the first promotional period
- Forgetting legal and clawback cost
- Refinancing too late after already paying months of a high reversion rate
- Not reviewing the package again after a few years
Related Tools and Guides
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FAQ
When should I refinance my home loan in Singapore?
Refinancing usually makes sense when your current package is no longer competitive and the expected savings are larger than switching costs. Borrowers should compare lock-in penalties, clawback, legal fees, valuation cost, and expected holding period before switching.
Is repricing or refinancing better?
Repricing may be simpler because you stay with the same bank and usually face less legal work. Refinancing can offer a wider package choice and stronger savings if better market rates exist elsewhere.
How much can I save by refinancing?
Savings depend on the gap between your current rate and the new package, your outstanding balance, fees, subsidies, and how long you keep the property. A simple example is an S$800,000 loan with a 1.0% rate difference, which may imply roughly S$8,000 in annual interest difference before fees.
What costs should I check before refinancing?
Borrowers should check lock-in penalties, cash rebate clawback, legal fees, valuation fees, and notice periods before switching. These items can materially change whether refinancing is worthwhile.