Best Bank Refinancing Rates Comparison 2026: Your Complete Guide to Switching Mortgages
If you locked in your home loan between 2022 and 2024 at rates between 3% and 4%, refinancing to today's rates—now hovering between 1.48% and 1.8%—could save you thousands of dollars annually. At Homejourney, we've analyzed current refinancing offers from all major Singapore banks to help you understand which option delivers genuine savings for your situation.
Refinancing means switching your home loan to a new bank or package, typically to secure a lower interest rate. Unlike repricing (switching packages within the same bank), refinancing involves new legal documentation and valuation fees—but banks now cover most of these costs through cash rebates, making the switch more affordable than ever.
Current Refinancing Rates: What Singapore Banks Are Offering in 2026
The Singapore mortgage market has shifted dramatically since mid-2025. The three-month SORA (Singapore Overnight Rate Average)—the benchmark rate most banks use for floating-rate packages—dropped to 1.34% in late 2025, the lowest level in three years. This has created unprecedented refinancing opportunities, particularly for HDB flat owners and private property buyers.
Here's what major banks currently offer for refinancing:
- Fixed-rate packages: Two-year fixed rates starting at 1.48% with free conversion after the first year; three-year fixed rates at 1.5%
- Floating-rate packages: SORA-linked rates as low as 1.35% (EMI basis), typically 0.8% to 1.1% above the three-month SORA
- Cash rebates: $2,000-$2,800 depending on loan size, covering legal fees and valuation costs with money left over
- Lock-in flexibility: Free conversion or repricing options after 12-24 months, allowing you to adapt if rates change
The chart below shows recent SORA trends to help you understand how rates have moved and what to expect:
As you can see, rates have remained relatively stable in the 1.3-1.4% range, suggesting that further significant declines are unlikely. This means the window for refinancing at these attractive rates may not remain open indefinitely—a key consideration for your timing decision.
Fixed vs. Floating Rates: Which Refinancing Package Makes Sense?
Your choice between fixed and floating rates depends on your risk tolerance and market outlook. Fixed-rate packages (typically 2-3 years) lock in your rate, protecting you if SORA rises. However, you lose the benefit if rates fall further. Floating-rate packages move with SORA, offering lower initial rates but exposure to rate increases.
Currently, the most popular refinancing packages are two-year fixed rates at 1.48% with free conversion after year one. This hybrid approach gives you rate certainty while maintaining flexibility to switch if conditions change dramatically.
Why HDB Flat Owners Are Refinancing in Record Numbers
Since early 2025, HDB flat owners have led a refinancing surge, switching from HDB's concessionary loan rate of 2.6% to bank packages at 1.55-1.8%. On a $400,000 HDB loan, this switch generates approximately $3,600 in first-year savings—enough for a family holiday.
However, this decision is permanent: once you leave the HDB loan scheme, you cannot return to it in future. This makes the financial math crucial. If you've owned your HDB flat for several years and your lock-in period has ended, the numbers likely favor refinancing. But if you're in the early years of a low fixed-rate HDB loan, staying put may be wiser.
For HDB owners considering the switch, our detailed guide on refinancing vs. repricing walks through the decision framework specific to HDB loans.
Bank-by-Bank Refinancing Comparison
Different banks emphasize different strengths. DBS leverages its dominant position as Singapore's largest bank to offer competitive fixed rates, particularly for loans above $1 million. OCBC has seen strong refinancing activity and offers flexible features like free conversion after the first year. UOB and Standard Chartered compete aggressively on cash rebates for larger loans.
Rather than listing individual rates (which change frequently), we recommend using Homejourney's bank rates comparison tool to see live rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other major lenders. This ensures you're always comparing current offers, not outdated information.
The comparison tool also includes a refinancing calculator that estimates your potential savings based on your current loan amount, rate, and remaining tenure—helping you determine if refinancing makes financial sense before you apply.
Understanding Refinancing Costs and Cash Rebates
The traditional concern with refinancing—legal fees ($400-600), valuation fees ($300-500), and potential clawback charges—has largely disappeared. Banks now offer cash rebates that fully cover these costs:
- Loans $500,000-$999,999: $2,000-$2,300 rebate
- Loans $1,000,000-$1,499,999: $2,500 rebate
- Loans $1,500,000+: $2,800 rebate
These rebates mean you often pocket excess cash after covering all switching costs. For borrowers with larger loans, the financial incentive to refinance is substantial. For more detail on hidden costs and how to factor them into your decision, read our guide to refinancing costs.
The Refinancing Timeline: When to Start the Process
Most home loans include lock-in periods (typically 2-3 years) during which early repayment triggers penalties. Once your lock-in period ends, you can refinance without penalty. Start the refinancing process 2-3 months before your lock-in expires—this allows time for bank processing without overlapping penalty periods.
Documentation typically includes your current mortgage statement, ID, proof of income, and property valuation. Using Homejourney's application system, you can submit to multiple banks simultaneously via Singpass, which auto-fills your information for faster processing. This eliminates the tedious process of visiting branches individually.
Timing Your Refinance: Is Now the Right Moment?
Interest rate forecasts suggest SORA will likely remain between 1.3% and 1.4% through mid-2026, with further significant declines unlikely given current macroeconomic conditions. This means rates are unlikely to drop substantially further, but they're also unlikely to spike immediately.
Refinancing activity is expected to moderate from mid-2026 onwards as borrowers who locked in at 3-4% rates in 2023-2024 complete their switches. If you're currently paying above 2%, refinancing within the next 3-4 months positions you to capture current attractive rates before the market normalizes.
To calculate whether refinancing makes sense for your specific situation—factoring in your remaining loan tenure, current rate, and refinancing costs—use Homejourney's refinancing calculator. This helps you determine your break-even point: the month when accumulated interest savings exceed refinancing costs.
Step-by-Step: How to Refinance Your Home Loan
Step 1: Check your lock-in period. Review your current mortgage statement to confirm when your lock-in period ends. Refinancing before this date triggers penalties.
Step 2: Compare rates and features. Use Homejourney's bank rates page to compare current offerings from all major banks. Focus on both the interest rate and features like free conversion options.
Step 3: Calculate your savings. Input your loan details into the refinancing calculator to estimate first-year and total savings, accounting for refinancing costs.
Step 4: Gather documentation. Prepare your current mortgage statement, NRIC, recent payslips, and employment letter. Homejourney's application process guides you through what's needed.
Step 5: Submit your application. Apply via Homejourney's multi-bank submission system. Your Singpass information auto-fills the application, and your details are simultaneously sent to all banks you've selected.
Step 6: Receive and compare offers. Banks respond within 3-5 business days with personalized offers. Compare the final rates, fees, and features before selecting your new lender.
Step 7: Complete the refinancing. Your new bank handles the legal documentation and valuation. You'll receive your cash rebate within 1-2 months of completion.
Negotiating Better Refinancing Rates
Banks compete aggressively for refinancing business because it's profitable for them. This competition works in your favor. When comparing offers, don't accept the first rate quoted. Contact the bank directly (or work with a mortgage broker) and mention competing offers—banks often improve their terms to win your business.
Key negotiation points include: requesting a lower rate spread above SORA, asking for extended free conversion periods, or seeking higher cash rebates for larger loans. The multi-bank application system on Homejourney creates natural competition, often resulting in better final offers than if you approached banks individually.
Common Refinancing Mistakes to Avoid
Mistake 1: Refinancing without calculating break-even. If you're planning to sell within 2-3 years, refinancing costs may exceed your savings. Always calculate the break-even point first.
Mistake 2: Ignoring lock-in period end dates. Refinancing before your lock-in expires triggers penalties that can negate years of interest savings. Mark your lock-in end date clearly.
Mistake 3: Choosing based on rate alone. A 0.1% lower rate might seem attractive, but if it comes with a longer lock-in period or no conversion flexibility, it may be worse overall. Evaluate the complete package.
Mistake 4: Not comparing cash rebates. Banks offer different rebate structures. A slightly higher rate with a larger cash rebate can be financially superior to a lower rate with minimal rebate.
Mistake 5: Refinancing too frequently. Each refinancing involves costs. Switching every 12 months rarely makes financial sense unless rates drop dramatically.
Why Homejourney Makes Refinancing Simpler and Safer
Refinancing involves important financial decisions, and Homejourney's platform is designed with your safety and trust as the foundation. Here's how we help:
- Transparent rate comparison: See live rates from all major banks in one place, with no hidden fees or surprise charges
- Verified information: All rates and terms are directly from banks, ensuring accuracy
- Multi-bank application: Submit once, receive offers from multiple banks—no need to visit branches repeatedly
- Singpass integration: Your information is auto-filled for faster processing and instant verification
- Real-time SORA tracking: Monitor live 3-month and 6-month SORA rates to understand rate movements and time your refinancing strategically
- Personalized guidance: Connect with Homejourney's mortgage brokers who provide tailored advice without pushing you toward unsuitable products
- Savings calculator: Estimate your potential savings before committing, so you make decisions based on real numbers
To get started, visit Homejourney's bank rates page to compare current refinancing offers and calculate your potential savings.
FAQ: Your Refinancing Questions Answered
Can I refinance if I'm still in my lock-in period?
Technically yes, but you'll pay an early repayment penalty—typically 0.25-1% of your outstanding loan balance. This penalty usually exceeds any interest savings from refinancing, making it financially unwise. Wait until your lock-in period ends unless rates drop dramatically (more than 1-2%).
How long does the refinancing process take?
From application to completion typically takes 4-6 weeks. Bank processing takes 3-5 business days, legal documentation 1-2 weeks, and valuation 1 week. Your new bank coordinates the timeline and handles most of the process.
What's the difference between refinancing and repricing?
Refinancing switches your loan to a different bank; repricing changes your rate package with the same bank. Refinancing typically offers better rates but involves higher costs (though banks now cover these). Repricing involves lower costs but limited rate improvements. Our detailed comparison guide helps you choose based on your situation.
Will refinancing affect my credit score?
Refinancing involves a credit check, which may cause a minor temporary dip in your credit score (typically 5-10 points). However, this recovers within a few months, and the long-term benefit of lower interest payments far outweighs this temporary impact.
