Best Bank Refinancing Rates Comparison 2026 | Homejourney

Best Bank Refinancing Rates in Singapore 2026

As of February 2026, Singapore's refinancing landscape offers compelling opportunities for homeowners looking to reduce their mortgage costs. The best fixed refinancing rates currently range from 1.48% to 1.75% for 2-year packages, while floating-rate options linked to SORA (Singapore Overnight Rate Average) start from 0.3% above 3-month SORA.[1][3] For HDB loan refinancing specifically, rates begin at 1.50% to 1.65% depending on the bank and loan structure.[3]

This cluster article focuses specifically on comparing refinancing rates across Singapore's major banks and understanding when refinancing makes financial sense. If you're exploring the broader refinancing strategy, our comprehensive 新加坡房贷再融资完整指南2026：Homejourney权威指南 ">Singapore Mortgage Refinancing Complete Guide 2026 covers the full process, hidden costs, and strategic timing considerations.

Current Refinancing Rate Comparison by Bank (February 2026)

Understanding the rate landscape is essential for making an informed refinancing decision. Here's how Singapore's major banks compare on refinancing rates:

2-Year Fixed Refinancing Rates

For resale condos and landed properties, the most competitive 2-year fixed rates are:[3]

Promotional rates: 1.48% to 1.50% (limited-time offers)
Maybank: 1.65%
Standard Chartered: 1.68%
HSBC: 1.70%
DBS: 1.75%

For HDB loan refinancing, rates are slightly lower due to lower risk:[3]

Promotional rates: 1.50% (best available)
Maybank: 1.55%
Standard Chartered: 1.60%
DBS: 1.65%
OCBC: 1.65%

3-Year Fixed Refinancing Rates

If you prefer longer lock-in periods for rate certainty, 3-year fixed options provide stability:[3]

DBS: 1.70%
Other banks: 1.75% to 1.85% (varies by promotion)

Floating Rate Refinancing (SORA-Linked)

Floating rates offer flexibility and are currently attractive given the interest rate environment:[2][5]

Spread above 3-month SORA: 0.3% to 0.5%
Current 3-month SORA: 1.34% (lowest in 3 years)[2]
Effective floating rate: approximately 1.64% to 1.84%

Most floating packages come with free conversion to fixed rates after 12 months, giving you the flexibility to lock in if rates rise.[2]

Understanding SORA and Interest Rate Trends

SORA (Singapore Overnight Rate Average) is the benchmark interest rate that most Singapore banks use for floating-rate home loans. Unlike older SIBOR rates, SORA is based on actual overnight transactions, making it more transparent and harder to manipulate.[2]

The chart below shows recent SORA trends to help you understand how rates have moved in 2025 and early 2026:

As you can see from the chart, three-month SORA has fallen to 1.34%, the lowest level in three years.[2] This significant decline is why refinancing activity has accelerated dramatically in 2025. Many homeowners who locked in at 3-4% rates in 2023-2024 are now refinancing to save substantial amounts on interest.

Why Refinancing Rates Matter in 2026

The difference between refinancing rates might seem small—say, 1.48% versus 1.75%—but over a 20-year loan, this 0.27% difference translates to thousands of dollars in savings. On a $500,000 loan, the 0.27% spread equals approximately $1,350 per year in interest costs.

According to recent data, HDB owners refinancing from the HDB's standard 2.6% rate to a bank loan at 1.55% can save approximately $3,600 in the first year alone on a $400,000 loan.[2] This is enough to cover substantial refinancing costs and still come out ahead financially.

Key Refinancing Trends in 2026

Understanding market trends helps you time your refinancing decision strategically:

Refinancing activity moderating from mid-2026: Many borrowers who locked in at high rates in 2023-2024 have already refinanced, so the volume of refinancing activity is expected to decrease.[2] This means banks may become less aggressive with promotional rates as competition eases.
Limited further rate declines: While rates have fallen significantly, experts believe most of the decline has already occurred.[2] Future rate movements are likely to be modest given current macroeconomic conditions.
HDB refinancing remains steady: Unlike the surge in 2025, HDB loan refinancing is expected to maintain steady levels throughout 2026 rather than spike.[2]

Cash Rebates and Hidden Incentives Comparison

Beyond interest rates, banks compete aggressively by offering cash rebates and fee waivers. These incentives can significantly reduce your out-of-pocket refinancing costs:

Typical Cash Rebate Structure

Loan amount $500,000-$999,999: $2,000-$2,300 cash rebate[1]
Loan amount $1,000,000-$1,499,999: $2,500 cash rebate[1]
Loan amount above $1,500,000: $2,800 cash rebate[1]

For HDB refinancing specifically, DBS offers a competitive edge. The bank provides a $2,000 cash reward for loans above $200,000, which fully covers the typical $1,800-$1,900 in upfront refinancing fees, leaving you with net cash rewards even after all costs are covered.[3]

Additional Bank Incentives

Beyond cash rebates, many banks now offer:[2]

Legal fee subsidies: Covering part or all of the $800-$1,200 legal costs
Free conversion options: Switching from fixed to floating (or vice versa) after 12-36 months at no cost
Free repricing: Changing to a different rate package within the same bank without fees
Valuation fee waivers: Covering the $400-$600 property valuation cost

Fixed vs. Floating: Which Refinancing Rate Type Suits You?

The choice between fixed and floating rates depends on your risk tolerance and market outlook. Here's how to decide:

Choose Fixed Rates If:

You want certainty and predictability in your monthly mortgage payments
You believe interest rates will rise significantly in the coming years
You prefer no rate risk during your lock-in period (typically 2-3 years)
You have a tight monthly budget and can't afford payment fluctuations

The most popular fixed packages in 2026 are 2-year fixed at 1.48% with free conversion after the first year, and 3-year fixed at 1.50%.[2] These offer a good balance of competitive rates with flexibility.

Choose Floating Rates If:

You believe interest rates will stay low or fall further
You want the lowest starting rate to maximize immediate savings
You can tolerate payment fluctuations if SORA rises
You plan to refinance again if rates change significantly

Current floating rates at 0.3% above 3-month SORA are exceptionally attractive given that SORA is at its lowest in three years.[2] However, if SORA rises to 2.5% or higher, your payments could increase substantially.

When to Refinance: Lock-In Period Strategy

The timing of your refinancing depends significantly on your current loan's lock-in period. Understanding this is crucial for maximizing savings without unnecessary penalties.

Lock-In Period Basics

Most refinancing packages lock you into a fixed rate for 2-3 years. During this period, you typically cannot switch to another bank's rates without paying an early exit fee (clawback). After the lock-in expires, you have several options:[1]

Free conversion: Switch from fixed to floating (or vice versa) at no cost
Free repricing: Change to a different rate package within the same bank
Refinance to another bank: Once lock-in ends, refinance without penalties

Strategic Lock-In Timing

If you're refinancing now (February 2026), consider which lock-in period makes sense:

2-year lock-in (expires Feb 2028): Ideal if you expect rates to remain stable or rise moderately. You'll have flexibility to refinance again in 2028 if rates drop significantly.
3-year lock-in (expires Feb 2029): Better if you want longer certainty. Rates are only slightly higher (1.50% vs 1.48%), making the extra year of stability worth it for many borrowers.
1+1 year structure (1.55% fixed, then repricing option): Offers the best of both worlds—competitive first-year rates with flexibility to adjust after 12 months.

Given that experts expect refinancing activity to moderate from mid-2026 and rate declines to be modest, locking in now at current rates is prudent.[2] The risk of rates falling significantly further appears limited.

Comparing Rates on Homejourney

Rather than visiting multiple bank branches or websites individually, Homejourney's Bank Rates ">bank rates comparison tool allows you to view current refinancing rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and other major banks in one place. This transparency is core to Homejourney's commitment to user safety and trust—we verify rates directly with banks to ensure accuracy.

Our platform also includes:

Real-time SORA tracking: Monitor 3-month and 6-month SORA rates to understand how floating-rate packages will perform
Refinancing savings calculator: Input your loan amount, current rate, and desired new rate to see exact savings projections
Multi-bank application: Submit one refinancing application to all major banks simultaneously—no more visiting branches one by one
Singpass integration: Auto-fill your application using your Singpass data for faster processing and instant verification

When you're ready to refinance, you can Bank Rates ">apply via Homejourney's bank rates page to connect with our mortgage brokers who provide personalized guidance throughout the process.

HDB vs. Private Property Refinancing Rates

If you're refinancing an HDB loan to a bank loan, rates are typically 0.5-1.0% lower than private property refinancing. This is because HDB flats are considered lower-risk collateral by banks.

However, there's an important consideration: once you refinance from HDB to a bank loan, you cannot switch back to HDB financing in the future.[4] This is a permanent decision, so ensure the savings justify the commitment. Given that HDB rates are fixed at 2.6% and bank rates are now 1.50-1.65%, the savings are substantial and likely permanent.