Best Bank Refinancing Rates Comparison 2025: Your Complete Guide to Switching Home Loans
If you're paying more than 1.50% on your home loan, refinancing could save you thousands of dollars over the remaining loan period. As of December 2025, Singapore's major banks are offering competitive refinancing rates starting from 1.30% fixed for the first year, with floating rate options from 1M SORA+0.25% (currently 1.42%).[1] The key to maximizing your savings is understanding how to compare rates across banks and calculate whether the refinancing costs justify the switch.
This guide walks you through the refinancing landscape in Singapore, helping you identify which banks offer the best deals and how to evaluate whether refinancing makes financial sense for your situation. At Homejourney, we've analyzed over 100 mortgage packages across Singapore's major banks to help you make an informed decision with confidence.
Understanding Refinancing vs. Repricing: Which Option Is Right for You?
Before comparing rates, it's essential to understand the fundamental difference between refinancing and repricing. Refinancing means switching your home loan to a different bank, while repricing means changing to a different interest rate package within your current bank.[2] This distinction matters significantly because it affects your costs, timeline, and available options.
Repricing typically takes about 5 weeks and involves only administrative fees (usually $800-$1,000).[2] However, your current bank has limited incentive to offer you their best rates—they know you're already a customer. Refinancing, by contrast, takes approximately 13 weeks but opens access to rates from every major bank competing for your business.[2] Most importantly, banks refinancing your loan typically cover legal and valuation fees as part of their promotional offers, meaning you might receive a net cash rebate instead of paying out-of-pocket costs.[1]
For loans above $500,000, banks typically offer cash rebates of $2,000-$2,800 to cover refinancing costs.[1] This means if you're paying more than 0.05% higher interest with your current bank, refinancing could put money back in your pocket while lowering your rate.
Current Refinancing Rates from Singapore's Top Banks (December 2025)
The refinancing rate landscape has shifted significantly in 2025. Here's what Singapore's major banks are currently offering:
- Fixed rates for Year 1: Range from 1.35% to 1.78%, with the most competitive offers at 1.35% (minimum $2 million loan) and 1.50% (minimum $500,000 loan)[1]
- Floating rates: Starting from 1M SORA+0.25% (approximately 1.42% as of December 2025), with some banks offering 3M SORA+0.50% options[1]
- Lock-in periods: Most banks offer 2-3 year fixed periods before conversion to floating rates[1]
- Free conversion options: Many packages include the ability to convert from fixed to floating after 12-36 months without penalty[1]
The chart below shows recent SORA trends to help you understand how interest rates have moved and what this means for your refinancing decision:
As you can see from the chart, SORA rates have remained relatively stable, making this a reasonable time to lock in fixed rates if you prefer payment certainty. However, if you believe rates may fall further, floating rate options tied to SORA provide flexibility.
How to Compare Refinancing Rates: Beyond the Headline Numbers
Most property owners focus only on the interest rate percentage, but this is only one piece of the refinancing puzzle. The true cost of refinancing includes interest rates, cash rebates, legal fees, valuation fees, and any early redemption penalties from your current bank.[1]
Here's the framework Homejourney recommends for comparing refinancing offers:
- Calculate your break-even point: Determine how long it takes for monthly interest savings to offset refinancing costs. If you plan to stay in your property longer than the break-even period, refinancing makes financial sense.
- Account for cash rebates: Subtract the bank's cash rebate from legal and valuation fees. For loans above $1 million, rebates typically reach $2,500-$2,800, often covering all costs with excess remaining.[1]
- Check for early redemption penalties: If your current loan has a lock-in period remaining, ask your bank about clawback fees or breakage costs. Some banks charge penalties if you refinance before the lock-in period ends.[1]
- Compare the full package: Look beyond Year 1 rates. What happens in Year 2 and Year 3? Some banks offer attractive introductory rates that jump significantly later.
- Evaluate flexibility: Does the package allow free conversion from fixed to floating? Can you make additional payments without penalty?
For example, if you're refinancing a $800,000 loan from 2.00% to 1.50%, you'd save approximately $4,000 annually. If refinancing costs total $3,000 after rebates, your break-even point is less than 1 year—making the switch highly worthwhile.
Key Considerations When Comparing Banks
Minimum Loan Amounts
Not all banks offer their best rates to all borrowers. Most competitive refinancing rates require minimum loan amounts of $500,000 to $2 million.[1] If your loan is below $500,000, you may have fewer options and potentially higher rates. Homejourney's rate comparison tool filters banks by your specific loan amount, ensuring you only see rates you actually qualify for.
Fixed vs. Floating Rate Strategy
Your choice between fixed and floating rates should depend on your risk tolerance and interest rate outlook. Fixed rates provide payment certainty—you know exactly what you'll pay for 2-3 years. Floating rates (typically SORA-based) offer lower initial rates but expose you to rate increases if SORA rises. Many borrowers choose a hybrid approach: lock in a fixed rate for 2-3 years, then convert to floating if rates appear stable.
Free Conversion Flexibility
Look for packages offering free conversion from fixed to floating after 12-24 months. This gives you the security of a fixed rate initially while maintaining the option to switch if market conditions change favorably.[1]
The Refinancing Timeline: What to Expect
Understanding the refinancing process helps you plan effectively. The typical timeline is approximately 13 weeks from application to completion.[2] Here's what happens:
- Weeks 1-2: Application, documentation submission, and in-principle approval
- Weeks 2-4: Bank assessment, credit checks, and property valuation
- Weeks 4-8: Formal offer, legal documentation preparation, and redemption notice to current bank
- Weeks 8-13: Settlement, fund transfer, and completion
Homejourney simplifies this process by allowing you to submit one refinancing application to multiple banks simultaneously via Singpass. Instead of visiting branches individually, banks compete for your business and send offers directly to you. This approach typically accelerates approval timelines and gives you genuine negotiating power.
Timing Your Refinancing: When to Make the Move
The best time to refinance depends on several factors:
- Lock-in period expiration: Most home loans have 2-3 year lock-in periods. Once this expires, you can refinance without penalties. Mark this date on your calendar—it's your refinancing window.[2]
- Interest rate environment: When rates drop significantly from your current rate, refinancing becomes more attractive. A 0.50% rate reduction on an $800,000 loan saves approximately $4,000 annually.
- Your remaining loan period: If you have less than 5 years remaining, refinancing may not make financial sense due to the costs involved.
- Your financial situation: If you're planning to upgrade, downsize, or relocate within 2-3 years, refinancing may not be worthwhile.
