10 Ways to Save Money on Your Mortgage: Frequently Asked Questions

Saving money on your mortgage is essential for Singapore homeowners facing high property costs. Homejourney's 10 Ways to Save Money on Your Mortgage: Frequently Asked Questions reveals practical strategies like rate comparisons and CPF optimization to reduce mortgage costs and lower home loan payments.

This cluster article supports our pillar guide, 10 Ways to Save Money on Your Mortgage Singapore | Homejourney ">10 Ways to Save Money on Your Mortgage Singapore | Homejourney, with targeted FAQs and actionable mortgage savings tips. At Homejourney, we prioritize your safety by verifying bank rates from trusted partners like DBS, OCBC, and UOB, helping you make confident decisions.

Why Focus on Mortgage Savings in 2026?

Singapore home loan rates have dropped to 3-year lows in 2026, with fixed rates as low as 1.35% and floating SORA-linked rates around 1.12% for qualifying loans.[2][6] Homeowners switching from 3% rates can save up to S$500 monthly on a S$500,000 loan.[2] Use Homejourney's bank rates page to compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, and Citibank instantly.

These savings compound over 25-30 years, but require smart strategies amid TDSR and MSR rules from MAS and HDB. Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator shows your borrowing power before applying via Singpass for paperless approvals.

10 Ways to Save Money on Your Mortgage

Here are 10 Ways to Save Money on Your Mortgage, with Singapore-specific tips to cut interest costs. Each includes real examples and Homejourney tools for safe implementation.

1. Compare Bank Rates Regularly: Rates vary; top fixed packages start at 1.30%, floating at 1M SORA + 0% (1.12%).[6] A S$500k loan at 1.6% vs 3% saves S$4,100 yearly.[2] Action: Visit Homejourney bank-rates for live comparisons across 11 banks.
2. Reprice Before Lock-In Ends: Avoid penalties by repricing at lock-in expiry. OCBC saw 7x more switches in 2025.[2] Savings: S$500/month for many.[2]
3. Choose Shorter Tenure: A 25-year vs 30-year S$500k loan at 2% saves S$50,000+ in interest. Use Homejourney calculator to test.
4. Make Partial Prepayments: Penalty-free options reduce principal. See Partial Prepayment vs Lump Sum: Which Saves More? Homejourney FAQs.
5. Optimize CPF Usage: Use CPF OA for payments, but refund if cash earns less than loan rate for arbitrage (e.g., 2.5% CPF vs 1.6% loan).[1]
6. Switch to Floating SORA Rates: Track lower SORA trends. Insert chart here for context:

SORA (Singapore Overnight Rate Average) is the key benchmark for floating loans in Singapore, replacing older rates for transparency.[3] The chart below shows recent interest rate trends:

As shown, SORA fell through 2025, dropping floating rates faster than fixed.[3] Time repricing with Homejourney's real-time SORA tracker.

7. Consider Interest Offset Accounts: Park cash to offset interest (e.g., S$100k offsets S$430k of S$500k loan).[1] Offered by select banks.
8. Break Fixed Lock-Ins if Savings Outweigh Penalties: From 2.8-3% to 1.6% can offset fees.[1][2]
9. Refinance HDB Loans: Switch from 2.6% HDB rate to banks under 2% if eligible.[3]
10. Leverage Promotions: Banks offer tighter spreads; compare via Homejourney for best deals.[3]

Real Savings Examples for Singapore Homeowners

For a S$800,000 HDB resale flat loan (common for upgraders):

• At 3% (old rate): Monthly ~S$3,780, total interest S$541,000 over 30 years.
• Reprice to 1.6%: Monthly ~S$3,100, saves S$680/month or S$244,800 total.[2]
• Add prepayment S$10k/year: Saves another S$100,000+ interest.

Test scenarios on Homejourney's mortgage calculator. Always check TDSR (60% debt-to-income) and consult Homejourney brokers for personalized advice. Disclaimer: Rates fluctuate; past performance isn't indicative. Seek professional financial advice.

Common Mistakes to Avoid

Don't ignore fees (legal, valuation ~S$2,000-5,000 for refinancing).[2] Overlook risk tolerance—fixed for stability, floating for potential savings.[2] Homejourney verifies all data for trust.

Frequently Asked Questions

1. How much can I save by refinancing my mortgage in 2026?
Savings average S$4,100/year on S$500k loans switching to 1.6% fixed.[2] Use Homejourney bank-rates to calculate precisely.

2. Is now a good time to reprice my home loan?
Yes, with rates at 3-year lows (1.35% fixed).[2][6] Reprice post-lock-in to avoid penalties; track SORA via Homejourney.

3. Fixed or floating—which saves more money?
Floating tracks lower SORA for potential savings if rates fall, fixed offers certainty.[2][3] Compare both on Homejourney.

4. Can I use CPF to save on mortgage interest?
Yes, but refund if cash arbitrage works (2.5% CPF vs low loan rates).[1] Homejourney guides CPF strategies safely.

5. What's the best way to prepay my mortgage?
Partial prepayments reduce principal without refinancing. Details in Partial Prepayment vs Lump Sum: Which Saves More? Homejourney FAQs ">Partial Prepayment vs Lump Sum FAQs.

Action Plan: Start Saving Today

1. Calculate eligibility at Homejourney calculator.
2. Compare rates across DBS, OCBC, UOB+ at bank-rates.
3. Apply via Singpass for multi-bank offers.
4. Search budget-friendly properties at Homejourney search.
5. Read our pillar: 10 Ways to Save Money on Your Mortgage Singapore | Homejourney ">10 Ways to Save Money on Your Mortgage Singapore.

Homejourney builds trust through verified data and user safety. Apply now for better rates—banks compete for you!

References

1. Singapore Property Market Analysis 2 (2026)
2. Singapore Property Market Analysis 6 (2026)
3. Singapore Property Market Analysis 1 (2026)
4. Singapore Property Market Analysis 3 (2026)