Best Banks for Mortgage Refinancing Singapore 2026: The Definitive Guide

Refinancing your mortgage could save you thousands of dollars annually. With interest rates at three-year lows and banks competing aggressively for refinancing business, 2026 presents an exceptional opportunity for Singapore homeowners to reduce their monthly payments and overall loan costs. This comprehensive guide walks you through every aspect of mortgage refinancing, helping you identify the best banks, understand your options, and make an informed decision that aligns with your financial goals.

At Homejourney, we prioritize your financial safety and trust by providing transparent, verified information to help you navigate the refinancing landscape with confidence. Whether you're refinancing an HDB loan, private property mortgage, or considering a switch between banks, this guide equips you with the knowledge to maximize your savings.

Executive Summary: Why Refinance in 2026?
Understanding Mortgage Refinancing vs Repricing
The 2026 Interest Rate Environment
Top Banks for Refinancing: Detailed Comparison
Current Refinancing Rates & Offers
Hidden Costs & Financial Considerations
HDB Loan Refinancing vs Private Property
Step-by-Step Refinancing Process
Money-Saving Strategies & Negotiation Tips
Timing Your Refinancing Decision
Frequently Asked Questions
Next Steps: How Homejourney Helps

Executive Summary: Why Refinance in 2026?

The refinancing landscape in Singapore has shifted dramatically in favor of borrowers. As of January 2026, three-month SORA rates have fallen to approximately 1.34 percent—the lowest level in over three years. This rate environment has created significant savings opportunities for homeowners whose existing mortgages were originated at higher rates.

The numbers tell a compelling story. Homeowners refinancing from HDB's concessionary loan rate of 2.6 percent to bank packages at 1.55–1.8 percent can save approximately $3,600 in first-year interest on a $400,000 loan. For larger loan amounts, the savings multiply substantially. Many banks are also offering cash rebates ranging from $1,000 to $3,500 and subsidizing legal and valuation fees to reduce refinancing costs.

Refinancing activity has accelerated throughout 2025, particularly among HDB flat owners. Market analysts project that this refinancing wave will continue into 2026, though activity may moderate from mid-year as borrowers who locked in at 3–4 percent rates complete their switches. The window of opportunity remains open for those who haven't yet refinanced, but acting strategically is essential.

Understanding Mortgage Refinancing vs Repricing

Before comparing banks and rates, it's crucial to understand the distinction between refinancing and repricing—two different strategies that serve different circumstances.

Refinancing Explained

Refinancing involves switching your mortgage to a different bank entirely. You're essentially paying off your existing loan with a new loan from another financial institution. This process requires legal documentation, valuation fees, and typically takes 4–6 weeks to complete. The key advantage is access to competitive rates from any bank in the market. The primary disadvantage is the associated costs—legal fees typically range from $800–$1,800, valuation fees from $350–$500, and potential early repayment penalties from your current lender.

Refinancing is particularly advantageous when the interest rate differential between your current loan and available refinancing offers exceeds the total costs involved. For example, if you can save 0.8 percent annually and your total refinancing costs are $2,500, you break even in approximately three years—well within most mortgage tenures.

Repricing Explained

Repricing means switching to a different interest rate package within the same bank, typically after your lock-in period expires. This process is significantly simpler and faster—often completed within days—and usually involves minimal or no administrative fees. Most banks offer one free repricing after the lock-in period ends.

The trade-off is limited choice. You can only access packages offered by your current bank. However, if your bank is offering competitive rates and you value simplicity and speed, repricing may be the optimal choice. Many homeowners use repricing as an intermediate step, then refinance to another bank if rates remain favorable.

Which Option Is Right for You?

Choose refinancing if: you can achieve a rate reduction of 0.5 percent or more, you're early in your lock-in period and willing to pay exit penalties, or your current bank's repricing options are uncompetitive. Choose repricing if: you're at or near the end of your lock-in period, you want to minimize administrative hassle, or your current bank offers competitive rates.

The 2026 Interest Rate Environment

Understanding the current interest rate landscape is fundamental to making refinancing decisions. Singapore's mortgage market is primarily driven by the Singapore Overnight Rate Average (SORA), which has become the benchmark for most floating-rate home loans.

SORA Rates: The Current Picture

SORA represents the average interest rate at which banks lend to each other overnight. Most Singapore banks price their floating-rate mortgages as SORA plus a spread (typically 0.25–0.60 percent depending on loan tenure and bank). When SORA falls, borrowers with floating-rate packages benefit immediately. When SORA rises, their rates increase accordingly.

As of January 2026, the three-month SORA rate stands at approximately 1.34 percent, down from over 3.6 percent in 2023. This represents a dramatic decline that has made refinancing attractive for thousands of homeowners. Market forecasts suggest SORA will hover between 1.3–1.4 percent through the end of 2026, assuming the US Federal Reserve maintains its current easing path and Singapore inflation remains controlled.

The chart below shows recent SORA trends to help you understand how rates have moved:

As you can see from the chart above, rates have stabilized at historically low levels after their sharp decline from 2023 highs. This stability creates a favorable environment for refinancing decisions—you're not chasing a rapidly moving target.

Fixed vs Floating Rate Packages

Banks currently offer two primary mortgage structures:

Fixed-Rate Packages: Lock in a specific interest rate for a defined period (typically 2–3 years). Popular packages include two-year fixed rates at 1.48 percent with free conversion after 12 months, and three-year fixed rates at 1.5 percent. Fixed rates provide payment certainty and are attractive when you believe rates may rise. The trade-off is that if rates fall further, you're locked in at the higher rate.

Floating-Rate Packages: Your rate fluctuates with SORA plus a bank spread. Current floating packages range from 1M SORA + 0.25 percent in year one to 1M SORA + 0.60 percent thereafter. Floating rates are advantageous in declining or stable rate environments and offer flexibility. However, your payments can increase if SORA rises.

For 2026, many financial advisors recommend fixed-rate packages for borrowers who value payment predictability, or floating-rate packages for those comfortable with rate variability and seeking to maximize current savings.

Top Banks for Refinancing: Detailed Comparison

Singapore's major banks are actively competing for refinancing business, each offering distinct advantages. Here's a detailed comparison of the top institutions:

DBS Bank

DBS remains Singapore's largest bank and a major player in mortgage refinancing. The bank offers competitive fixed and floating-rate packages, with recent customer examples showing two-year fixed rates at 1.6 percent—nearly half previous 3 percent rates, delivering savings of approximately $500 monthly for affected borrowers.

DBS advantages include: extensive branch network for in-person support, sophisticated digital banking platform for easy management, flexible loan features like free conversion after lock-in periods, and substantial cash rebates (up to $3,500 for loans above $600,000). DBS also offers its proprietary Fixed Deposit Home Rate (FHR6) for certain packages, calculated based on DBS's six-month fixed deposit rates.

For HDB refinancing specifically, DBS's POSB HDB home loan package delivers first-year savings of approximately $3,600 on a $400,000 loan compared to HDB's concessionary rate.

OCBC Bank

OCBC has reported increased refinancing activity in 2025, particularly from HDB flat owners. The bank positions itself as a customer-centric lender with strong refinancing incentives.

OCBC advantages include: competitive interest rates in line with market leaders, substantial cash rebates and legal fee subsidies, personalized service through dedicated home loan specialists, and flexible repayment options. OCBC's head of home loans has emphasized the bank's commitment to making refinancing accessible and attractive.

The bank's refinancing packages typically include one free conversion after 12 months, allowing borrowers to adjust their loan structure if circumstances change.

UOB (United Overseas Bank)

UOB is a strong third player in Singapore's mortgage market, offering competitive refinancing packages with particular strength in customer service and digital convenience.

UOB advantages include: streamlined online application process, competitive rates comparable to DBS and OCBC, cash rebates and fee subsidies, flexible loan structures, and strong digital banking integration. UOB's mortgage specialists are known for responsive service and willingness to negotiate terms.

HSBC, Standard Chartered, and Other International Banks

International banks including HSBC and Standard Chartered maintain active presence in Singapore's mortgage market, often offering competitive rates to attract refinancing customers.

These banks' advantages include: international reputation and stability, sometimes more flexible lending criteria for expats and international clients, competitive rate offerings, and premium service levels. However, they typically have fewer physical branches than local banks, which may impact convenience for some borrowers.

Regional Banks: Maybank, CIMB, RHB, Hong Leong

Regional banks including Maybank, CIMB, RHB Bank, and Hong Leong Bank also offer refinancing packages, often with competitive rates and strong promotional offers to gain market share.

These institutions may offer: attractive cash rebates, flexible terms, and sometimes less stringent documentation requirements. However, they typically have smaller branch networks in Singapore, which may affect accessibility.

Current Refinancing Rates & Offers (January 2026)

The following represents current market rates and offers as of January 2026. These rates are dynamic and change frequently as banks adjust their offerings.

Fixed-Rate Packages

Most competitive fixed-rate refinancing packages currently available:

2-Year Fixed Rates: 1.48–1.60 percent, with one free conversion after 12 months
3-Year Fixed Rates: 1.50–1.65 percent, with similar flexibility features
Additional Benefits: Legal fee subsidies ($1,800 for loans above $500,000), valuation fee subsidies ($350–$500), cash rebates ($1,000–$3,500 depending on loan amount)

Floating-Rate Packages

Floating-rate packages tied to SORA, with rates adjusting based on SORA movements:

Year 1–2: 1M SORA + 0.25 percent
Year 3: 1M SORA + 0.40 percent
Year 4+: 1M SORA + 0.60 percent
Additional Benefits: Free conversion to fixed rate after 12 months, penalty waivers for sales, up to 30 percent partial repayment allowed during lock-in, smart mortgage features with up to 70 percent interest offset

Green Mortgage Options

Some banks offer specialized green mortgage packages for energy-efficient properties:

2-Year Fixed Green Mortgage: 1.40 percent (lowest current rate available)
Requirements: Property must meet energy efficiency standards
Benefits: Lower rates plus environmental impact

Comparing Rates on Homejourney

Rather than visiting each bank individually, you can compare refinancing rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and other major banks in one place on Homejourney's Bank Rates page. This centralized comparison saves time and ensures you're seeing current offers from all major lenders.

Hidden Costs & Financial Considerations

While refinancing can deliver substantial savings, understanding all associated costs is essential for accurate break-even calculations.

Direct Refinancing Costs

Legal Fees: Typically $800–$1,800 depending on loan amount and complexity. Many banks now subsidize these fees partially or fully for refinancing customers. For HDB properties with outstanding mortgages above $250,000, full fee subsidies are often available.

Valuation Fees: Usually $350–$500 to assess property value for the new loan. Banks increasingly subsidize these fees as competitive incentives.

Early Repayment Penalties: Your current lender may charge penalties for early loan settlement, typically 0.25–1 percent of the outstanding loan amount or a fixed fee. Some loans have penalty-free periods or declining penalty structures. Check your current loan documents carefully.

Clawback of Cash Rebates: If your current loan included a cash rebate, the lender may claw back a portion if you repay early. This is typically calculated on a declining basis—for example, 50 percent clawback in year one, 25 percent in year two, zero thereafter.

Indirect Costs to Consider

Stamp Duty: Refinancing typically doesn't incur additional stamp duty, but confirm with your lawyer.

Processing Time: Refinancing takes 4–6 weeks, during which you may have overlapping loan payments if timing isn't managed carefully.

Administrative Effort: Gathering documentation, coordinating between lenders, and managing the process requires time and attention.

Break-Even Analysis Framework

To determine if refinancing makes financial sense, calculate your break-even point:

Break-Even Months = Total Refinancing Costs ÷ Monthly Savings

Example: If total costs are $2,500 and you save $200 monthly, break-even occurs in 12.5 months. If your remaining loan tenure is 15+ years, refinancing is financially sound.

Most financial advisors recommend refinancing when break-even occurs within 2–3 years, ensuring you recoup costs well before loan maturity.

HDB Loan Refinancing vs Private Property

The refinancing process differs significantly depending on whether you own an HDB flat or private property.

HDB Loan Refinancing Strategy

HDB flat owners currently face a compelling refinancing opportunity. The HDB concessionary loan rate is fixed at 2.6 percent, while bank packages now offer 1.55–1.8 percent—a difference of 0.8–1.05 percent annually.

Key Considerations for HDB Refinancing:

Irreversibility: Once you refinance from an HDB loan to a bank loan, you cannot switch back to an HDB loan in the future. This is a permanent decision requiring careful consideration.
Savings Potential: On a $400,000 HDB loan, refinancing to a bank package saves approximately $3,600 in first-year interest alone.
Fee Subsidies: Most banks offer full or substantial subsidies of legal and valuation fees for HDB refinancing, particularly for loans above $250,000.
Timing: HDB refinancing activity is expected to remain steady throughout 2026, with no urgency to rush, though earlier action captures rate benefits sooner.

For HDB owners, the decision hinges on whether the permanent nature of the switch is acceptable given the substantial savings available. If you're comfortable with bank financing long-term and confident in your financial stability, HDB refinancing typically makes strong financial sense.

Private Property Refinancing Strategy

Private property owners refinancing between banks face different considerations:

Key Considerations for Private Property Refinancing:

Flexibility: You can refinance between banks multiple times, allowing optimization as rates and offers change.
Loan Amount Thresholds: Many banks have minimum loan amounts (often $250,000–$500,000) for competitive refinancing offers. Smaller loans may have less attractive terms.
Fee Negotiations: With private properties, legal and valuation fee subsidies are more negotiable. Larger loans attract better subsidy offers.
Property Valuation Impact: Your property's current market value affects the new loan amount available. Rising property values may allow larger loans; declining values may restrict borrowing.

For private property owners, refinancing strategy should consider the flexibility to switch again in future if rates decline further or better offers emerge.

Step-by-Step Refinancing Process

Understanding the refinancing timeline and requirements helps you prepare effectively and avoid delays.

Step 1: Assess Your Current Loan (Weeks -4 to -2)

Before approaching new lenders, thoroughly review your existing loan:

Obtain your latest mortgage statement showing outstanding balance, interest rate, and remaining tenure
Review your loan agreement for early repayment penalties, clawback provisions, and lock-in periods
Calculate total refinancing costs including penalties, clawback, legal fees, and valuation fees
Determine your break-even timeline
Identify your refinancing window—typically starting 4 months before your lock-in period ends

Step 2: Compare Refinancing Options (Week -2 to 0)

Research available refinancing packages from multiple banks:

Compare rates, loan structures (fixed vs floating), and loan tenures on Bank Rates
Calculate potential monthly savings for each option
Review cash rebates, fee subsidies, and promotional offers
Consider your risk tolerance regarding fixed vs floating rates
Shortlist 2–3 banks offering the most attractive combination of rates and benefits

Homejourney's bank rates comparison page allows you to evaluate all major banks simultaneously, saving significant time compared to visiting branches individually.

Step 3: Prepare Documentation (Week 0 to 1)

Gather required documents before submitting applications:

Personal Identification: NRIC, passport, or employment pass
Income Documentation: Latest 3 months of payslips, last 2 years of tax returns or Notice of Assessment
Employment Verification: Employment letter confirming current position and salary
Current Loan Details: Mortgage statement, loan agreement, latest property tax bill
Property Documentation: Title deed or HDB lease document, latest property valuation
Financial Statements: Bank statements (typically 3 months), list of existing liabilities

Having documentation ready accelerates the application process significantly.

Step 4: Submit Applications (Week 1 to 2)

Rather than visiting multiple bank branches, you can submit one refinancing application to all major banks simultaneously via Homejourney's Bank Rates page. This streamlined approach allows banks to compete for your business without requiring repetitive visits and applications.

Using Singpass/MyInfo integration, you can auto-fill much of your application in seconds, accelerating the process further.

Step 5: Receive and Compare Offers (Week 2 to 3)

Banks will provide loan offers within 3–5 business days of complete application submission. Each offer specifies:

Interest rate and loan structure (fixed or floating)
Monthly payment amount
Loan tenure options
Cash rebate amount
Fee subsidies
Promotional conditions

Compare offers carefully, considering not just the headline rate but total cost of borrowing including all fees and rebates.

Step 6: Select Preferred Bank and Formalize (Week 3 to 4)

Once you've selected the most attractive offer:

Formally accept the bank's offer in writing
Provide final documentation as requested
Sign loan agreement and related documents
Arrange property valuation if required

Step 7: Legal Processing and Loan Drawdown (Week 4 to 6)

Your lawyer and the bank's legal team will coordinate:

Discharge of existing mortgage with current lender
Registration of new mortgage with new bank
Funds transfer to settle existing loan
Drawdown of new loan to your account

This phase typically takes 2–3 weeks. Once complete, your refinancing is finalized and you begin payments under the new loan terms.

Money-Saving Strategies & Negotiation Tips

Refinancing isn't a one-size-fits-all process. Strategic decisions can maximize your savings.

Negotiating Interest Rates

Banks' published rates are starting points, not fixed prices. Particularly for larger loan amounts, negotiation is expected:

Leverage Competition: Mention competing offers from other banks. Banks will often match or beat competitor rates to secure your business.
Emphasize Loan Size: Larger loans (above $500,000–$1 million) attract better rates. If your loan qualifies, emphasize this during negotiations.
Highlight Customer Value: If you maintain other banking relationships (salary account, credit card, investments) with the new bank, mention this—banks value customers with multiple products.
Timing Leverage: Banks are more flexible with rates during promotional periods or when they're targeting refinancing volume.

Maximizing Cash Rebates and Subsidies

Current market offers include substantial cash rebates and fee subsidies. Ensure you capture all available benefits:

Understand Clawback Terms: Some rebates are subject to clawback if you repay early. Clarify these terms before accepting.
Negotiate Fee Subsidies: Legal and valuation fees are often negotiable. Request full subsidies for loans above $500,000.
Combine with Other Offers: Some banks allow combining refinancing cash rebates with other promotional offers. Ask explicitly.

Optimizing Loan Tenure

Refinancing provides an opportunity to reconsider your loan tenure:

Shorter Tenure: Refinancing to a shorter tenure (e.g., from 25 to 20 years) increases monthly payments but reduces total interest paid significantly. This strategy works well if your financial situation has improved.
Maintain Tenure: Keeping the same remaining tenure preserves monthly payments while capturing rate savings.
Extend Tenure: Extending tenure reduces monthly payments but increases total interest. Generally not recommended unless financial hardship necessitates lower payments.

Strategic Rate Lock Decisions

Deciding between fixed and floating rates significantly impacts long-term costs:

Fixed Rates: Lock in current low rates if you believe rates will rise. Current 2-year fixed rates at 1.48–1.60 percent provide certainty.
Floating Rates: Choose floating if you're comfortable with rate variability and believe SORA will remain stable or decline. Current spreads (SORA + 0.25–0.60 percent) are competitive.
Hybrid Approach: Some borrowers choose fixed rates initially, then convert to floating after 12 months if rates remain favorable. Many banks offer one free conversion for this purpose.

Timing Your Refinancing

When you refinance affects your savings timeline:

Early in Lock-In Period: Refinancing early means paying exit penalties, but you capture rate savings for a longer period. This makes sense for substantial rate differentials (0.8 percent or more).
Near End of Lock-In Period: Refinancing as your lock-in period ends minimizes penalties and is typically optimal. Most advisors recommend starting the process 4 months before lock-in expiration.
Repricing First: If your current bank offers competitive repricing rates, consider repricing first (free and quick), then refinancing later if better offers emerge.

Timing Your Refinancing Decision

Market conditions, personal circumstances, and rate forecasts all influence optimal refinancing timing.

Current Market Conditions (2026)

Several factors support refinancing in early 2026:

Historically Low Rates: SORA at 1.34 percent represents three-year lows, creating substantial savings opportunities versus older mortgages.
Competitive Bank Offerings: Banks are actively competing with attractive rates, cash rebates, and fee subsidies to capture refinancing volume.
Stable Rate Outlook: Market forecasts suggest SORA will remain between 1.3–1.4 percent through 2026, providing stability for decision-making.
Refinancing Wave Momentum: Refinancing activity is accelerating, and banks are motivated to process applications quickly.

When to Delay Refinancing

Refinancing may not be optimal if:

Your current loan rate is already below 1.8 percent (savings potential is limited)
You're very early in a lock-in period with substantial exit penalties exceeding 3 years of savings
Your personal financial situation is unstable (job uncertainty, major expenses planned)
You believe rates will fall significantly further (though this is speculative)

The Refinancing Wave Timeline

Market analysts project refinancing activity will remain strong through mid-2026, then moderate as borrowers who locked in at 3–4 percent rates complete their switches. This suggests:

First Half 2026: Optimal window for refinancing with strong bank competition and promotional offers
Second Half 2026: Refinancing remains available but with potentially less aggressive promotional offers as refinancing demand moderates
2027 and Beyond: Refinancing will depend on prevailing interest rates at that time

For most borrowers, refinancing in early 2026 captures the maximum benefit of current market conditions.

Frequently Asked Questions

Can I refinance my HDB loan to a bank loan?

Yes, you can refinance an HDB loan to any bank loan. However, this is a permanent decision—once you refinance away from HDB, you cannot return to an HDB loan in the future. Given current rate differentials (HDB at 2.6 percent vs banks at 1.55–1.8 percent), refinancing typically makes financial sense, but the irreversibility warrants careful consideration.

What's the difference between refinancing and repricing?

Refinancing switches your loan to a different bank, requiring legal processing and taking 4–6 weeks. Repricing switches to a different package within the same bank, typically taking days with minimal fees. Refinancing offers more choice but higher costs; repricing is simpler but limited to your current bank's offerings. See Refinancing vs Repricing: Which Saves More in 2026? | Homejourney for detailed comparison.