Best Bank Refinancing Rates Comparison 2026
Refinancing your home loan can save you thousands of dollars annually, but only if you compare rates strategically across Singapore's major banks. In January 2026, floating-rate refinancing packages start from as low as 1.34% to 1.47% (pegged to 3-month SORA), while fixed-rate options range from 1.45% to 1.6% depending on your lock-in period and loan amount.[1][2] The key to finding the best refinancing rate isn't just comparing numbers—it's understanding which banks offer the most competitive rates for your specific situation, combined with cash rebates and flexible switching options that can reduce your total costs.
At Homejourney, we prioritize your financial safety by helping you verify and compare refinancing offers from all major banks before you commit. This cluster article guides you through the current refinancing landscape, shows you how rates compare across DBS, OCBC, UOB, HSBC, Standard Chartered, and other leading lenders, and explains the strategic factors that determine whether refinancing makes financial sense for your property.
Current Refinancing Rates from Singapore Banks (January 2026)
Singapore's refinancing market has become highly competitive, with banks aggressively offering lower rates and generous incentives to attract borrowers switching from other lenders or HDB loans. Here's what the current rate environment looks like:
Floating-Rate Packages (SORA-linked): Most banks now offer 2-year fixed packages with free conversion to floating rates after 12 months, priced between 1.47% and 1.55%.[2] These packages give you the security of a fixed rate initially while allowing flexibility if interest rates continue falling. The underlying 3-month SORA benchmark has dropped to 1.34%—the lowest level in over three years—making floating-rate options particularly attractive for borrowers comfortable with rate fluctuations.[2]
Fixed-Rate Packages: Traditional fixed-rate refinancing packages typically range from 1.45% to 1.8% depending on lock-in duration. According to mortgage advisers, the most popular packages today include a 2-year fixed rate at 1.48% with free conversion after the first year, and a 3-year fixed rate at 1.5%.[2] These fixed options appeal to borrowers who want payment certainty and protection against future rate increases.
Loan Amount Thresholds: Refinancing rates vary significantly based on your loan size. Loans above $500,000 typically qualify for better rates and more generous cash rebates ($2,000–$2,800), while loans above $1 million can access premium rates and rebates up to $2,800.[1]
The chart below shows recent SORA trends to help you understand how rates have moved and what this means for your refinancing decision:
As you can see from the chart, SORA rates have declined significantly from their 2023 peaks above 3.6%, creating a compelling window for refinancing. However, as mortgage experts note, the bulk of rate decline has already occurred, and further drops are likely to be modest.[2]
How to Compare Refinancing Rates Across Banks
Comparing refinancing rates isn't just about finding the lowest percentage—you need to evaluate the complete package, including cash rebates, conversion flexibility, and total costs. Here's how to approach this strategically:
1. Look Beyond the Interest Rate
Banks compete aggressively on refinancing by offering more than just low rates. Most major lenders now include cash rebates that cover your legal fees and valuation costs, with excess cash rebated to you.[1] For example, refinancing a $400,000 HDB loan to a bank package could save you approximately $3,600 in first-year interest alone—enough to cover a family trip to Tokyo.[2] When you factor in cash rebates of $2,000–$2,800, your net refinancing cost often becomes zero or even negative.
2. Evaluate Lock-In and Conversion Features
The flexibility to convert or reprice your loan matters significantly. Packages with "free conversion after 12 months" allow you to switch from fixed to floating rates without penalty if market conditions change.[2] This feature is particularly valuable in the current environment where rates could move in either direction. Compare these options across banks—some offer conversion after 12 months, others after 24 or 36 months.
3. Factor in Your Loan Amount
Refinancing incentives scale with loan size. If you're refinancing above $1 million, you'll access better rates and larger cash rebates than borrowers with $500,000 loans. Use this information to negotiate—banks are motivated to compete for larger loans.
4. Use Homejourney's Multi-Bank Comparison Tool
Rather than visiting each bank branch individually, compare refinancing rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and other major lenders in one place on Bank Rates . Our bank rates page lets you see current rates, calculate your potential savings instantly, and understand which banks offer the best packages for your specific loan amount and timeline. This transparent comparison approach ensures you're making informed decisions based on verified data from all major lenders.
Refinancing vs. Repricing: Which Strategy Saves More?
Refinancing means switching to a new loan with a different bank, while repricing means changing to a different interest rate package within your current bank.[3][4] Understanding the difference is crucial because each strategy has different costs and benefits.
Refinancing Advantages: When you switch banks, the new lender covers most of your transaction costs (legal fees, valuation) through cash rebates, and you can access genuinely competitive rates. Banks are "hungrier for your business" when you're switching from a competitor.[1] Refinancing makes sense when the rate difference is significant (typically 0.5% or more) and your lock-in period has ended.
Repricing Advantages: Staying with your current bank for repricing typically involves a lower administrative fee ($800–$1,000) compared to refinancing legal and valuation costs.[3] However, the rates offered for repricing are often worse than what the bank offers new customers, so the savings may be limited. Repricing makes sense only if your current bank's new package is genuinely competitive and you want to avoid switching costs.
For a detailed comparison of both strategies and how to calculate which saves more money in your situation, see our guide Refinancing vs Repricing: Which is Better for You? Homejourney .
Why HDB Borrowers Are Refinancing in Record Numbers
Since early 2025, HDB flat owners have refinanced to bank loans in unprecedented numbers, driven by the gap between HDB's fixed 2.6% concessionary rate and bank packages now available at 1.48%–1.8%.[2] This represents a savings opportunity of 0.8%–1.1% annually—substantial on a $400,000 loan.
Important Consideration: Once you refinance from an HDB loan to a bank loan, you cannot switch back to an HDB loan in the future.[3] This is a permanent decision, so verify that refinancing to a bank loan makes long-term financial sense before proceeding. Calculate your break-even point (typically 2–3 years) to ensure you'll benefit from lower rates for sufficient time.
The last major refinancing wave occurred between 2019–2020 when floating rates fell below 1.5%, and refinancing volumes from HDB loans jumped 35%–40% year-on-year.[2] Current market conditions suggest similar momentum, but experts expect refinancing activity to moderate from mid-2026 as borrowers who refinanced in 2025 complete their switches.
Step-by-Step: How to Switch to a Better Refinancing Rate
The refinancing process is straightforward when you know what to expect. Here's the timeline and key steps:
- Check Your Lock-In Period: Confirm when your current loan's lock-in period ends. Refinancing before this date typically incurs early repayment penalties, making the switch uneconomical.
- Compare Rates Across Banks: Use Bank Rates to compare current refinancing offers. Calculate your potential monthly savings and total first-year benefits including cash rebates.
- Calculate Your Break-Even Point: Determine how many months it takes for interest savings to exceed refinancing costs. Most refinancing breaks even within 18–36 months. For detailed calculations, see How to Calculate If Refinancing is Worth It | Homejourney .
- Gather Documentation: Prepare your NRIC, payslips (last 2–3 months), employment letter, property documents, and current loan statement. Banks increasingly use Singpass/MyInfo integration to auto-fill applications, reducing documentation burden.
- Submit Your Application: Apply via Homejourney's Bank Rates page to submit one application to multiple banks simultaneously. This allows banks to compete for your business, often resulting in better offers than if you applied individually.
- Receive and Compare Offers: Banks typically respond within 3–5 working days with formal offers. Compare the final rates, cash rebates, and terms before selecting your preferred lender.
- Complete Legal and Valuation: The new bank arranges legal and valuation services, with costs covered by the bank's cash rebate in most cases.
- Finalize the Switch: The new bank pays off your old loan and transfers the remaining balance to your new mortgage. This process typically takes 2–4 weeks from application to completion.
Hidden Costs and How to Minimize Them
While refinancing often results in net savings, several costs can erode your benefits if you're not careful. Understanding and minimizing these costs is essential for maximizing your refinancing gains:
Legal Fees: Typically $800–$1,500 depending on loan complexity. Most banks cover this through cash rebates when refinancing.
Valuation Fees: Usually $300–$600. Again, covered by most banks' refinancing rebates.
Early Repayment Penalties (Clawback): If you refinance before your lock-in period ends, you may face penalties. Always confirm your lock-in expiry date before applying.
Repricing Fees: If you reprice with your current bank instead of refinancing, expect $800–$1,000 in administrative charges that won't be waived.
For a comprehensive breakdown of all hidden costs and strategies to minimize them, read Hidden Costs of Refinancing: What You Need to Know Before Switching Banks .
Timing Your Refinancing: When to Make Your Move
The current interest rate environment (January 2026) presents a compelling refinancing window, but timing matters. Here's what you should consider:
Current Market Conditions: SORA rates are at 3-year lows, and fixed-rate packages are highly competitive. Experts believe the bulk of rate declines have already occurred, with further drops likely to be modest.[2] This suggests waiting for significantly lower rates is unlikely to be worthwhile.
Refinancing Activity Outlook: Mortgage advisers expect refinancing to remain healthy through 2026 but moderate from mid-year as borrowers who locked in at 3%–4% in 2023–2024 complete their switches.[2] If you're eligible to refinance now, the competitive environment and available incentives make early 2026 an attractive window.
Your Personal Timeline: If your lock-in period ends soon, start the refinancing process immediately. Applications typically take 3–4 weeks to complete, so begin early to avoid missing your optimal window.
Track Real-Time SORA Rates: Monitor the 3-month and 6-month SORA benchmarks on Bank Rates to understand the underlying rate environment. If SORA continues declining, floating-rate packages become even more attractive.
Frequently Asked Questions About Refinancing Rates
Q1: What's the difference between SORA and fixed-rate refinancing packages?
SORA (Singapore Overnight Rate Average) is the benchmark rate used for floating-rate packages. Your monthly payment fluctuates as SORA changes, but current rates are at 3-year lows (1.34%), making floating packages attractive.[2] Fixed-rate packages lock your interest rate for a set period (typically 2–3 years), providing payment certainty but higher initial rates. Choose fixed rates if you want predictable payments; choose SORA-linked floating rates if you're comfortable with fluctuations and want to benefit from potential future rate declines.
Q2: How much can I save by refinancing?
Savings depend on your current rate, loan amount, and the new rate you secure. For example, refinancing a $400,000 HDB loan at 2.6% to a bank package at 1.48% saves approximately $3,600 in the first year alone.[2] Over a 25-year remaining loan term, cumulative savings could exceed $100,000. Use the savings calculator on Bank Rates to calculate your specific savings based on your loan details.
