Best Bank Refinancing Rates in Singapore 2026
Singapore's mortgage refinancing landscape has shifted dramatically in early 2026, with floating-rate packages now starting from 1.12% and fixed rates from 1.30% – making this an ideal time for homeowners to reassess their loans. Whether you're switching from an HDB loan to a bank package or refinancing between banks, understanding current rates and comparing your options through platforms like Homejourney can save you thousands of dollars over your remaining loan tenure.
The refinancing market is highly competitive right now, with banks offering generous cash rebates ranging from $2,000 to $2,800 for loans above $500,000, plus subsidized legal and valuation fees. This means you could potentially refinance at a lower rate and pocket cash in the process – a rare opportunity that won't last indefinitely.
Current Refinancing Rates: What Banks Are Offering
As of January 2026, the refinancing rate environment remains highly favorable. Major banks including DBS, OCBC, UOB, HSBC, and Standard Chartered are competing aggressively for refinancing customers, driving rates to multi-year lows.
Floating-rate packages are pegged to the 3-month Singapore Overnight Rate Average (SORA), which recently hit 1.34% – the lowest level in over three years. Banks are offering floating rates at SORA + 0% spreads, meaning your rate could be as low as 1.12% depending on your loan amount and credit profile. These packages typically come with lock-in periods of 2-3 years, after which you can convert to fixed rates or reprice without penalty.
Fixed-rate packages start from 1.30% for 2-year locks and 1.50% for 3-year locks. Popular options include 2-year fixed at 1.48% with free conversion after year one, and 3-year fixed at 1.50% with waiver on sale. These fixed rates provide certainty and protection if interest rates rise unexpectedly.
The chart below shows recent SORA trends to help you understand how rates have moved:
To compare current rates from all major banks and calculate your potential savings, visit Homejourney's bank rates page where you can view live rates, eligibility requirements, and promotional offers in one transparent comparison.
Why Refinancing Makes Sense Now
For HDB loan holders, the case for refinancing is particularly compelling. HDB's concessionary loan rate is fixed at 2.6%, but bank packages are now 100+ basis points cheaper. A homeowner with a $400,000 HDB loan refinancing to a bank package at 1.48% could save approximately $3,600 in the first year alone – enough to cover a family holiday or accelerate mortgage repayment.
Refinancing activity has surged among HDB flat owners since early 2025, particularly those who locked in at 3-4% rates in 2022-2023 and have now reached the end of their lock-in periods. These borrowers are switching to bank loans to capture the 200+ basis point rate differential.
For private property owners with existing bank loans, refinancing makes sense if: (1) your lock-in period has ended, (2) you can refinance at least 0.5% lower than your current rate, and (3) the monthly savings exceed refinancing costs within 2-3 years. Use Homejourney's refinancing calculator to determine your break-even point and potential lifetime savings.
Cash Rebates and Cost Offsets
One of the most attractive features of refinancing in 2026 is that banks are covering your transaction costs through generous cash rebates and fee subsidies. Here's what's typically available:
- Loan amount $500,000-$999,999: Cash rebate of $2,000-$2,300
- Loan amount $1,000,000-$1,499,999: Cash rebate of $2,300-$2,500
- Loan amount $1,500,000+: Cash rebate of $2,800
- Legal fees: Typically $800-$1,200 (often fully subsidized by new bank)
- Valuation fees: Typically $300-$600 (often fully subsidized by new bank)
Because banks are competing intensely for refinancing business, they're absorbing these costs as part of their customer acquisition strategy. This means you could refinance to a lower rate and actually receive cash in your account – a scenario that was rare just 12 months ago.
Additionally, mortgage brokers who arrange refinancing deals through platforms like Homejourney may offer additional incentives as part of their service. When you apply through Homejourney, you're connecting with brokers who have relationships with multiple banks and can negotiate on your behalf.
Refinancing vs. Repricing: Which Option Is Right for You?
It's crucial to understand the difference between refinancing and repricing, as they have different implications for your finances:
Refinancing means switching your loan to a different bank. You'll incur legal fees ($800-$1,200), valuation fees ($300-$600), and potentially early repayment charges if your lock-in period hasn't ended. However, you gain access to the best rates in the market and can capture significant savings. Banks are currently covering most of these costs through rebates.
Repricing means switching to a different interest rate package within your current bank. Repricing typically costs $800-$1,000 and can be done after your lock-in period ends. The advantage is lower costs and faster processing. However, your current bank may not offer rates as competitive as what other banks are offering to new customers.
For a detailed comparison of these strategies and when each makes financial sense, read Homejourney's guide to refinancing vs. repricing Refinancing vs Repricing: Which Saves You More Money in 2026? .
The Refinancing Process: Step-by-Step
One of the biggest barriers to refinancing has traditionally been the hassle of visiting multiple banks to compare offers. Homejourney has simplified this through its digital-first approach:
- Compare rates online: Visit Homejourney's bank rates page to see current refinancing offers from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and other major banks. Filter by loan amount, property type, and preferred rate structure.
- Calculate your savings: Use Homejourney's refinancing calculator to input your current loan details and see potential monthly savings and break-even timelines.
- Submit one application: Rather than visiting each bank individually, submit a single refinancing application through Homejourney. Your information is shared securely with all banks you're interested in.
- Use Singpass for instant verification: Authorize via Singpass/MyInfo to auto-fill your financial details. This speeds up processing and reduces documentation requirements.
- Receive multiple offers: Banks compete for your business and submit their best offers directly to you. Compare terms, rates, and rebates side-by-side.
- Choose and proceed: Select the best offer and finalize your refinancing. The new bank handles most of the paperwork, including liaising with your current bank for early repayment.
The entire process typically takes 2-4 weeks from application to completion, and you never need to visit a bank branch. This is a dramatic shift from the traditional refinancing experience and reflects how Homejourney prioritizes user convenience and safety through digital-first processes.
Timing Your Refinancing: Lock-In Periods and Rate Trends
The timing of your refinancing application matters significantly. Here are key considerations:
Lock-in period end date: Most refinancing penalties apply if you exit your loan before the lock-in period ends. Review your loan documents to identify when you can refinance without penalty. Many borrowers from 2022-2023 are now reaching the end of 2-3 year lock-in periods, making them ideal candidates for refinancing.
Interest rate environment: Current rates are at 3-year lows, but experts suggest further declines are likely to be modest. Mortgage advisors recommend refinancing sooner rather than later if your lock-in period has ended, as waiting for rates to drop another 0.25% may not materialize while you miss out on current savings.
Market expectations: If the US Federal Reserve continues cutting rates and Singapore's inflation remains low, SORA could drift slightly lower. However, the bulk of the rate decline has already occurred. Refinancing now captures the bulk of available savings without betting on further rate cuts.
Track live SORA rates on Homejourney to monitor rate movements in real-time and make informed timing decisions. The platform updates rates daily so you can see exactly when banks adjust their offerings.
Hidden Costs and How to Minimize Them
While cash rebates and fee subsidies are generous in 2026, it's important to understand all costs involved in refinancing:
- Legal fees: $800-$1,200 (usually covered by new bank)
- Valuation fees: $300-$600 (usually covered by new bank)
- Early repayment charges: Only applicable if refinancing before lock-in period ends; typically 0.25-0.5% of remaining loan balance
- Clawback provisions: Some banks claw back rebates if you refinance again within 3 years; check terms carefully
- Administrative fees: Repricing within the same bank costs $800-$1,000; refinancing to a new bank usually has these fees covered
For a detailed breakdown of hidden costs and strategies to minimize them, read Homejourney's guide to hidden refinance costs Hidden Refinance Costs Without Bank Visits: Homejourney Guide .
Use Homejourney's transparency tools to see the full cost breakdown before committing. The platform shows all fees, rebates, and net costs so there are no surprises.
Special Considerations for HDB Loan Refinancing
HDB flat owners face a unique decision: refinancing to a bank loan is permanent. Once you switch from an HDB loan to a bank loan, you cannot switch back to an HDB loan in the future. This makes the decision more consequential than simply switching between banks.
The financial case is compelling – saving 100+ basis points on a $400,000 loan translates to $4,000+ annually in lower interest payments. However, some borrowers prefer the simplicity and stability of HDB loans. Consider:
- How long you plan to stay in the property (longer holding periods justify refinancing)
- Your risk tolerance regarding interest rate fluctuations (fixed rates provide certainty)
- Your financial flexibility (bank loans have stricter requirements for early repayment)
- Your age and loan tenure (younger borrowers with longer repayment periods benefit more from rate savings)
HDB loan refinancing activity is expected to remain steady through 2026, with more owners likely to make the switch if rates continue to be favorable. Homejourney's platform makes it easy to model both scenarios – staying with HDB versus refinancing to a bank – so you can make an informed decision.
Market Outlook: Will Rates Drop Further?
Mortgage advisors and banks are divided on whether rates will decline further in 2026. Current consensus suggests:
- SORA could decline modestly if US Federal Reserve continues cutting rates
- However, the bulk of rate decline has already occurred from 2024-2025
- Further declines are likely to be 0.25% or less, translating to $50-100 monthly savings on a $400,000 loan
- Refinancing activity is expected to moderate from mid-2026 as fewer borrowers will have lock-in periods ending and rate differentials will narrow
This suggests the window for refinancing at current favorable rates may be closing. Homeowners whose lock-in periods end in early 2026 should prioritize refinancing applications rather than waiting for potential further rate declines.
Frequently Asked Questions About Refinancing in 2026
How much can I save by refinancing from HDB to a bank loan?
On a $400,000 HDB loan at 2.6%, refinancing to a bank package at 1.48% saves approximately $3,600 in the first year, or $300 monthly. Over a 25-year remaining tenure, total savings could exceed $80,000 before accounting for rate changes. Use Homejourney's calculator to compute savings based on your specific loan amount and remaining tenure.
Should I refinance if my lock-in period hasn't ended?
Generally, no – early repayment charges typically range from 0.25-0.5% of your remaining loan balance, which can offset 1-2 years of interest savings. However, if you're refinancing to a significantly lower rate (0.75%+ difference), the math might work. Calculate your break-even point using Homejourney's refinancing calculator before deciding.
What's the difference between refinancing and repricing?
Refinancing means switching to a different bank (costs $1,100-$1,800 in fees, but usually covered by banks in 2026). Repricing means switching packages within your current bank (costs $800-$1,000). Refinancing typically offers better rates but takes 2-4 weeks; repricing is faster but rates may not be as competitive. Read Homejourney's detailed comparison Refinancing vs Repricing: Which Saves You More Money in 2026? to understand which suits your situation.
