Best Bank Refinancing Rates Comparison 2026
Singapore's refinancing landscape has shifted dramatically in 2026, with floating-rate packages now starting from just 1M SORA+0.25% (equivalent to 1.43%) and fixed rates as low as 1.30%[1]. If you're locked into a mortgage from 2022-2023 when rates were significantly higher, refinancing could save you thousands of dollars annually. This guide walks you through comparing the best refinancing rates across Singapore's major banks and helps you determine whether switching is the right move for your financial situation.
Understanding Current Refinancing Rates in Singapore
As of January 2026, Singapore's mortgage market is experiencing historically low rates driven by declining SORA (Singapore Overnight Rate Average) benchmarks. The three-month SORA has fallen to approximately 1.34% per annum—the lowest level in more than three years[2]. This dramatic shift from the 3.6%+ rates seen throughout 2023 has created significant refinancing opportunities, particularly for homeowners who locked in at higher fixed rates.
The most popular refinancing packages currently available include two-year fixed-rate loans at 1.48% with free conversion after the first year, and three-year fixed-rate loans at 1.5%[2]. For those preferring floating rates, banks are offering packages pegged to SORA with spreads ranging from 0.25% to 0.45% above the benchmark rate[1].
The chart below shows recent SORA trends to help you understand how rates have moved and what this means for your refinancing decision:
What makes 2026 particularly attractive for refinancing is not just the lower rates themselves, but the competitive incentives banks are offering. Cash rebates ranging from $2,000 to $2,800 are now standard for loans above $500,000, effectively covering all your transaction costs and putting money back in your pocket[1].
Comparing Top Banks' Refinancing Offers
Singapore's major banks—DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and CIMB—are actively competing for refinancing customers. Rather than visiting each bank individually, you can now compare all refinancing rates and offers in one place through Homejourney's bank rates comparison tool, which aggregates current offers from all major lenders.
DBS Bank currently offers competitive fixed rates leveraging its position as Singapore's largest bank with the biggest pool of Singapore dollar funds. Their refinancing packages come with generous cash rebates—$2,000 for loans above $500,000, scaling to $2,800 for loans above $1.5 million[1]. DBS also offers flexible features like free conversion from fixed to floating after the lock-in period.
OCBC Bank has seen significant refinancing activity in 2025-2026, particularly from HDB flat owners switching from HDB concessionary loans. Their POSB HDB home loan product offers estimated first-year savings of $3,600 on a $400,000 loan compared to staying with HDB's 2.6% rate[2]. This translates to meaningful annual interest savings for borrowers.
UOB, HSBC, and Standard Chartered round out the major players, each offering competitive rates and promotional packages. The key differentiator between banks often comes down to flexibility features (free conversion timing, repricing options) and the size of cash rebates offered, rather than the base interest rates themselves, which tend to cluster closely together.
Rather than manually comparing each bank's website, use Homejourney's comparison feature to see all current rates side-by-side, complete with details on lock-in periods, conversion options, and cash rebate amounts. This transparency ensures you're making decisions based on complete information.
Fixed vs. Floating Rate Refinancing: Which Should You Choose?
The decision between fixed and floating rates depends on your risk tolerance and interest rate outlook. Fixed-rate packages lock in your rate for a set period (typically 2-3 years), providing payment certainty. Floating rates, typically pegged to 3-month SORA plus a bank spread, offer lower initial rates but expose you to rate increases if SORA rises.
With SORA currently at historically low levels around 1.34%, many financial advisors suggest considering fixed rates to lock in certainty[2]. However, if you believe rates will continue falling or stay stable, floating rates offer immediate savings. Many banks now offer free conversion options after 12-24 months, allowing you to switch between fixed and floating without penalties—a feature that didn't exist in previous years.
For a deeper analysis of this decision, see our guide on refinancing vs. repricing strategies.
Investment Property and Second Property Refinancing
If you're refinancing an investment property or second property, the landscape differs slightly from primary residence refinancing. Most banks offer competitive rates for investment properties, though some may require higher minimum loan amounts (often $1-2 million) or charge slightly higher spreads above SORA.
Investment property refinancing can be particularly valuable if you're looking to optimize your property portfolio. By refinancing at lower rates, you can improve your rental yield or free up capital for additional investments. The cash rebates available through refinancing can also be redirected into property improvements or portfolio expansion.
For comprehensive guidance on investment property refinancing strategies, read our complete guide on refinancing investment properties in Singapore.
The Refinancing Process: Step-by-Step
Step 1: Check Your Lock-In Period – Review your current mortgage agreement to determine when your lock-in period ends. Most refinancing makes sense after this period expires to avoid early repayment penalties. If you're currently locked in at 3-4% rates from 2022-2023, you could be paying significantly more than necessary.
Step 2: Calculate Your Break-Even Point – Refinancing involves costs (legal fees, valuation fees, and potential clawback charges). Most banks now subsidize these costs through cash rebates, but you should still calculate whether the interest savings justify any remaining costs. For a detailed methodology, see our article on calculating if refinancing is worth it.
Step 3: Compare Rates Across Banks – Rather than visiting multiple bank branches, use Homejourney's bank rates comparison tool to view all current offers. Filter by loan amount, preferred rate type (fixed/floating), and lock-in period to find packages matching your needs.
Step 4: Submit Your Application – Homejourney simplifies this process by allowing you to submit one refinancing application that goes to all major banks simultaneously. Using Singpass/MyInfo integration, your application data auto-fills in seconds, and banks compete for your business by presenting their best offers. This eliminates the need to visit multiple branches or fill out repetitive paperwork.
Step 5: Review Offers and Select Your Bank – Once banks respond with their offers, compare not just the interest rate but also the lock-in period, conversion options, and total cash rebate amount. The lowest rate isn't always the best deal if another bank offers better flexibility or higher rebates.
Step 6: Complete the Refinancing – Your chosen bank handles most of the administrative work, including legal documentation and valuation. The entire process typically takes 2-4 weeks from application to completion.
Hidden Costs and Cash Rebates to Know About
Refinancing involves several costs that borrowers should understand. Legal fees typically range from $800-$1,200, while property valuation fees are usually $300-$600. Some banks may also charge clawback fees if you're exiting an early lock-in period, though these are increasingly waived as part of promotional packages.
The good news: most banks now cover these costs entirely through cash rebates. Current rebate levels are $2,000 for loans above $500,000, $2,300-$2,500 for loans above $1 million, and $2,800 for loans above $1.5 million[1]. In many cases, you'll receive excess cash after all costs are covered, putting money directly in your pocket.
