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

Saving money on your mortgage is essential for Singapore homeowners facing HDB or private property loans. Homejourney helps you save money on your mortgage through transparent tools like our bank rates comparison at https://www.homejourney.sg/bank-rates, ensuring trust and safety in every decision.[1][2]

This FAQ-focused cluster article answers key questions on mortgage savings tips, linking back to our pillar guide 10 Ways to Save Money on Your Mortgage in Singapore | Homejourney ">10 Ways to Save Money on Your Mortgage in Singapore | Homejourney for comprehensive strategies. With rates at 3-year lows in 2026, now's the time to act.[2]

Why Focus on Reducing Mortgage Costs in Singapore?

Singapore's Total Debt Servicing Ratio (TDSR) caps borrowing at 55% of income, while Mortgage Servicing Ratio (MSR) limits HDB/EC loans to 30%.[3] High costs from SORA or fixed rates can strain budgets, but smart moves like repricing save thousands. For a S$500,000 loan, switching from 3% to 1.6% saves S$500 monthly.[2]

Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator shows your savings instantly, prioritizing user safety with verified bank data from DBS, OCBC, UOB, and more.

10 Ways to Save Money on Your Mortgage: Actionable FAQs

Here are the top 10 ways to reduce mortgage costs, answered with Singapore-specific examples and steps. Each includes calculations and Homejourney tips for trusted execution.

Reprice Your Loan at Lock-In End: Wait until your 2-year lock-in ends to avoid penalties, then reprice. Example: DBS homeowner repriced to 1.6% fixed, saving S$500/month on S$500k loan.[2] Use Homejourney to compare live rates from 11 banks.
Switch to Lowest Fixed Rates: Fixed loans are popular (4 in 5 OCBC customers choose them).[2] Current lows start at 1.30%.[4] Calculate break-even with our tool.
Opt for Floating SORA Packages: 3M SORA +0% hits 1.15%.[4] Track trends to time switches.

The chart below shows recent interest rate trends in Singapore:

As seen, rates fell to 3-year lows, boosting refinancing.[2] Continue with these steps:

Make Penalty-Free Partial Prepayments: Banks like DBS allow within lock-in. For S$500k at 2.8%, S$50k prepay cuts interest by S$4,100/year.[2] See Partial Prepayment vs Lump Sum: Which Saves More via Homejourney ">Partial Prepayment vs Lump Sum: Which Saves More via Homejourney .
Refund CPF After Prepayment: Refund used CPF to earn 2.5% while loan costs less, arbitraging ~1%.[1] Ideal if cash earns <1%.
Use Interest Offset Accounts: Park cash to offset loan interest (e.g., S$100k offsets 70% on S$500k loan).[1] Offered by select banks.
Shorten Loan Tenure: From 30 to 25 years on S$1M loan at 2% saves S$100k+ interest. Use Homejourney calculator to model.
Negotiate Bank Packages: Homejourney's multi-bank submission lets banks compete, unlocking better offers from HSBC, Standard Chartered, Maybank.
Time Refinancing with Rate Drops: Legal/valuation fees ~S$2-3k, but savings outweigh for >0.5% drop.[2] Apply via Singpass on Homejourney for speed.
Optimize CPF Usage: Use OA for HDB loans first, preserving SA at 4%. Check eligibility on our platform.
Break Fixed-Rate Lock-In if Savings Exceed Penalty: For 2.8-3% rates, new 1.6% often justifies.[1]

Real Savings Examples for Singapore Homeowners

HDB upgrader with S$800k loan at 3% (S$3,800/month): Reprice to 1.6% + S$20k prepay drops to S$3,000/month, saving S$9,600/year. EC buyer at 30% MSR: Higher income ceiling wish could cut downpayment S$150k.[3]