Best Bank Refinancing Rates Comparison 2026: Your Complete Guide to Switching Banks
As of February 2026, Singapore's refinancing landscape offers homeowners unprecedented opportunities to reduce their mortgage costs. Fixed refinancing rates now start from as low as 1.30%, while floating rates begin at 1M SORA+0% (currently 1.14%), with major banks offering cash rebates of $2,000 to $2,800 to cover switching costs. If you're paying more than 2% on your existing home loan, refinancing could save you hundreds of dollars monthly—but only if you compare rates strategically across all major banks and understand the true costs involved.
Refinancing means switching your home loan from your current bank to another bank offering better terms. Unlike repricing (changing packages within the same bank), refinancing gives you access to more competitive rates because new banks actively compete for your business with attractive packages and generous subsidies. The key question isn't whether to refinance, but how to find the best deal without wasting time visiting multiple branches.
Current Refinancing Rates from Singapore's Major Banks (February 2026)
The refinancing market in early 2026 reflects a significant downtrend in interest rates. Here's what the major banks are currently offering:
Fixed Rate Options:
- Year 1 rates: 1.50% to 1.78% (depending on bank and loan amount)
- Year 2 rates: 1.30% to 1.78% (with free conversion options after 12-36 months)
- Minimum loan amounts typically range from $400,000 to $2,000,000
Floating Rate Options:
- 1M SORA + 0% to 0.25% spread (effective rates: 1.14% to 1.36%)
- Repricing quarterly based on SORA movements
- Lower starting rates but variable monthly payments
The chart below shows recent SORA trends to help you understand how rates have moved and what to expect:
As you can see from the chart, rates have trended downward throughout 2025 and into early 2026, creating an ideal window for refinancing if you locked in at higher rates previously.
Understanding the True Cost of Refinancing
While lower interest rates are attractive, refinancing involves several costs that you need to factor into your decision. The good news: most major banks now subsidize these costs to attract new customers, and you may even receive excess cash rebates.
Typical Refinancing Costs (Before Bank Subsidies):
- Legal fees: $800–$1,200 (for documentation and conveyancing)
- Valuation fees: $400–$600 (property assessment for the new bank)
- Appraisal/Processing fees: $300–$500 (varies by bank)
- Clawback penalty: Some banks charge 0.5%–1% of the outstanding loan amount if you refinance before the lock-in period ends
Bank Subsidies & Cash Rebates (February 2026):
- Loans $500,000–$999,999: $2,000–$2,300 cash rebate
- Loans $1,000,000–$1,499,999: $2,300–$2,500 cash rebate
- Loans above $1,500,000: Up to $2,800 cash rebate
These subsidies typically cover all your legal and valuation costs, meaning you refinance at zero net cost—and often walk away with excess cash in your pocket. This is why refinancing has become so popular in 2026: the banks are hungry for your business and willing to pay for it.
Fixed vs. Floating Rates: Which Should You Choose?
The choice between fixed and floating rates depends on your risk tolerance and market outlook.
Fixed Rate Advantages:
- Predictable monthly payments for 1–3 years (lock-in period)
- Protection against rate increases
- Easier budgeting for families with tight cash flow
- Peace of mind during uncertain economic times
Floating Rate Advantages:
- Currently 0.4%–0.6% lower than fixed rates
- Potential for significant savings if SORA continues downward
- Flexibility to switch to fixed rates later
- Better for investors who can absorb rate fluctuations
In February 2026, many advisors recommend fixed rates for homeowners with tight budgets, as they provide certainty. However, if you have financial flexibility and believe rates will stay low, floating rates offer better value. The key is understanding your personal situation—not just chasing the lowest advertised rate.
The Refinancing Timeline: From Application to Completion
Understanding the timeline helps you plan your refinancing around your lock-in period and avoid unnecessary penalties.
Step 1: Check Your Lock-In Period (Timing: Immediate)
Review your current loan documents to find when your lock-in period ends. You can refinance anytime after this date without penalties. If you're still in the lock-in period, refinancing may trigger a clawback penalty (typically 0.5%–1% of outstanding balance). Calculate whether the interest savings outweigh this penalty.
Step 2: Compare Refinancing Rates Across Banks (Timing: 1–2 hours)
Rather than visiting multiple branches, use Homejourney's bank rates comparison tool to instantly see current offers from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, and other major lenders. Our platform displays rates, lock-in periods, free conversion options, and cash rebates side-by-side, so you can identify the best deal in minutes.
Step 3: Submit Your Refinancing Application (Timing: 1 day)
With Homejourney, you can submit one refinancing application and have it automatically sent to multiple banks simultaneously. Using Singpass/MyInfo integration, your financial information is auto-filled, eliminating the need for multiple branch visits or repeated document submissions. Banks then compete for your business by offering their best rates.
Step 4: Review Offers & Select Your Preferred Bank (Timing: 3–5 days)
Banks will contact you with formal offers showing the exact interest rate, monthly payment, lock-in period, and cash rebate. Compare these carefully. Don't just pick the lowest rate—consider the lock-in period, free conversion options, and total cash rebate.
Step 5: Legal Documentation & Valuation (Timing: 2–3 weeks)
Your new bank arranges legal documentation and property valuation. Most banks now subsidize these costs fully, so you won't pay out-of-pocket. Your new bank's legal team communicates directly with your current bank to ensure smooth transfer.
Step 6: Loan Completion & Disbursement (Timing: 2–4 weeks)
Once all documentation is signed and the valuation is complete, your new bank disburses funds to settle your existing loan. Your new monthly payments begin immediately. The entire process typically takes 6–8 weeks from application to completion.
How to Calculate Your Refinancing Savings
Before refinancing, you need to calculate whether the interest savings justify the switching costs. Here's the methodology:
Example Calculation:
Assume you have a $600,000 loan at 2.5% with 15 years remaining. A new bank offers 1.6% fixed for 2 years.
- Current monthly payment: $4,330
- New monthly payment: $3,940
- Monthly savings: $390
- Estimated refinancing costs: $1,500 (legal + valuation)
- Bank cash rebate: $2,300
- Net cash received: $800
- Break-even point: Immediate (you receive cash and save $390/month)
In this scenario, refinancing is a clear win. You not only save $390 monthly but also receive $800 upfront. Even if you only stay for 2 years, you save $9,360 in interest—far exceeding any costs.
For a more detailed analysis tailored to your specific loan, use Homejourney's refinancing calculator, which factors in your loan amount, current rate, new rate, remaining term, and lock-in period to show exact savings projections. Read our detailed guide on How to Calculate If Refinancing is Worth It: Homejourney Guide for step-by-step calculation methodology.
Refinancing vs. Repricing: Which Option is Right for You?
Many homeowners confuse refinancing with repricing, but they're fundamentally different strategies with different costs and timelines.
Repricing: Changing to a different interest rate package within your current bank (e.g., moving from a 3% fixed package to a 1.6% fixed package with DBS).
- Administrative fee: $800–$1,000
- Timeline: 1–2 weeks
- Disadvantage: Current banks typically offer worse rates to existing customers than they offer to new customers
Refinancing: Switching to a completely different bank and taking out a new loan.
- Switching costs: $1,500–$2,000 (fully subsidized by new bank)
- Timeline: 6–8 weeks
- Advantage: New banks offer significantly better rates to attract your business
In the current market, refinancing almost always beats repricing. Why pay your current bank $1,000 to reprice when a new bank will pay you $2,000–$2,800 to switch and give you a better rate? However, if your lock-in period hasn't ended yet, repricing might be your only option (unless the clawback penalty is small enough to justify refinancing anyway).
For a comprehensive comparison, see our guide: Refinancing vs Repricing: Which is Better for Singapore Homeowners? | Homejourne...
Why Refinancing Online (No Branch Visits) is a Game-Changer
Traditionally, refinancing meant visiting multiple bank branches, submitting documents repeatedly, and waiting days for callbacks. In 2026, this process has been completely transformed.
The Old Way (Still Available, But Inefficient):
- Visit DBS branch → submit application → wait for callback
- Visit OCBC branch → submit application → wait for callback
- Visit UOB branch → submit application → wait for callback
- Repeat for each bank (5–10 hours of your time)
- Receive different offers at different times, making comparison difficult
The Homejourney Way (Digital Refinancing):
- Visit Homejourney bank rates page
- Compare rates from all major banks in real-time
- Submit one application via Singpass (auto-fills your data)
- Application automatically sent to multiple banks simultaneously
- Receive all offers within 3–5 days for easy comparison
- Total time investment: 30 minutes
Digital refinancing eliminates the friction that previously made this process tedious. You're no longer bound by branch hours or geographic location. Whether you're at home, at work, or on holiday, you can submit your refinancing application and receive competitive offers from all major banks.
Learn more about the process in our guide: Refinance Home Loan Online: No Bank Visits via Homejourney
Key Factors to Compare Beyond Interest Rates
While interest rate is important, several other factors significantly impact your refinancing decision:
1. Lock-In Period & Free Conversion Options
A 2-year fixed rate at 1.60% with free conversion to floating after 12 months gives you flexibility. If rates drop further, you can switch to floating. If rates rise, you stay fixed. Banks offering free conversion after 12–24 months provide valuable optionality.
2. Minimum Loan Amount
Some banks require minimum loan amounts of $500,000 or $1,000,000. If your loan is smaller, you'll have fewer options. Homejourney's comparison tool filters by your loan amount, showing only banks that will accept your application.
3. Cash Rebate Amount
A bank offering 1.65% with a $2,000 rebate might be better than one offering 1.60% with a $2,300 rebate, depending on your loan amount and remaining term. Calculate the true value, not just the headline rate.
4. Processing Speed
If you're in a time-sensitive situation (e.g., property sale completion), some banks process faster than others. Digital applications via Singpass typically complete faster than traditional branch applications.
5. Customer Service & Support
Homejourney's mortgage brokers are available to guide you through the process, answer questions, and help you negotiate better terms. This personalized support is especially valuable if you have complex financial situations.
