Best Banks for Mortgage Refinancing Singapore 2026 | Homejourney Guide
The definitive guide to best bank refinance Singapore options, refinancing rates comparison, and top banks refinancing packages for HDB and private property owners. Updated for 2026 market conditions.
Executive Summary
Singapore's mortgage refinancing market in 2026 offers unprecedented opportunities for homeowners to lock in historically low rates, with floating SORA-linked packages as low as 1.34% and fixed rates from 1.30%.[1][2][3] Homejourney, your trusted platform prioritizing user safety and transparency, analyzes DBS OCBC UOB refinance deals and more to help you identify the best refinance offers.
Expect savings of $3,600-$4,100 annually on a $400k-$500k loan by switching from HDB's 2.6% rate or high-rate bank loans.[1][2] Our guide covers fundamentals, bank comparisons, step-by-step processes, and Homejourney tools like multi-bank applications via Singpass for seamless, secure refinancing.
Whether you're an HDB upgrader in Toa Payoh or a private property investor in Orchard, this pillar content equips you with data-driven insights grounded in MAS regulations and real 2025-2026 trends.
Table of Contents
- 1. Refinancing Fundamentals: Repricing vs Refinancing
- 2. When to Refinance in 2026: Timing and Market Outlook
- 3. Understanding SORA and Interest Rate Trends
- 4. Top Banks Refinancing Comparison 2026
- 5. Break-Even Analysis and Hidden Costs
- 6. Step-by-Step Refinancing Guide
- 7. Money-Saving Strategies and Negotiation Tips
- 8. How Homejourney Simplifies Refinancing
- 9. FAQ: Best Bank Refinance Singapore
1. Refinancing Fundamentals: Repricing vs Refinancing
Refinancing means switching your home loan to a new lender for better rates or terms, while repricing stays with the same bank but changes the package post-lock-in.[1][2] For HDB flats, refinancing from HDB's 2.6% concessionary loan to banks can save thousands, but note: you can't revert to HDB loans.[1]
Repricing suits minor rate tweaks within your bank (e.g., DBS to a lower fixed package), often free after lock-in. Refinancing unlocks cash rebates ($2,000-$2,800) from new banks like OCBC or UOB, covering legal fees.[3]
Key Differences Table
| Aspect | Refinancing | Repricing |
|---|---|---|
| Lender Change | Yes (e.g., HDB to DBS) | No |
| Costs | Legal ($2k-$3k), Valuation ($500), Clawback possible | Admin fees (~$200), often waived |
| Perks | Cash rebates $2k+, better rates | Simpler, faster |
| Best For | Big savings, end of lock-in | Quick tweaks |
Pro Tip: For 2026, refinance if savings exceed costs within 2 years. See Refinancing vs Repricing Guide.
2. When to Refinance in 2026: Timing and Market Outlook
Refinance when lock-in ends (typically 2-3 years) and new rates are 0.5%-1% lower.[2] 2025 saw HDB-to-bank switches surge as SORA hit 1.34%, lowest in 3 years; expect tailwinds into 2026 with 3M SORA at 1.3%-1.4%.[1]
Bulk refinancing from 2023-24 high-rate loans (3-4%) will moderate mid-2026, but HDB activity stays steady.[1] US Fed cuts signal modest further drops, but rates won't fall linearly.[2]
Insider Tip: Monitor via Homejourney's real-time SORA tracker at https://www.homejourney.sg/bank-rates. Start 3-6 months before lock-in ends to avoid penalties.
3. Understanding SORA and Interest Rate Trends
SORA (Singapore Overnight Rate Average) is MAS's risk-free benchmark for floating loans, preferred over outdated SIBOR. 3M SORA drives most packages; as of late 2025, it's ~1.34%, down from 3.6% in 2023.[1]
Fixed rates halved to 1.4%-1.8% p.a.[2] The chart below shows recent interest rate trends in Singapore:
As seen, rates stabilized low, favoring refinancing. Fixed suits risk-averse (e.g., Toa Payoh HDB owners); floating for optimists betting on cuts.[1][3]
4. Top Banks Refinancing Comparison 2026
Homejourney compares DBS OCBC UOB refinance and partners' refinance offers. Rates from 1.30% fixed, with rebates covering costs.[3] Use our tool at https://www.homejourney.sg/bank-rates.
Top Packages Table (Week of Dec 29, 2025; $500k+ Loans)
| Bank | Year 1 Rate | Lock-In | Rebate (Refi) | Features |
|---|---|---|---|---|
| DBS | 1.35% Fixed | 2y | $2,000-$2,800 | FC12, FHR6 |
| OCBC | 1.50% Fixed | 3y | $2,000 | FC36, 7x switch volume |
| UOB | 1.60% Fixed | 2y | $2,300 | FC24 |
| HSBC | 1M SORA+0.25% (1.36%) | 2y | $2,300 | Floating flex |
| Standard Chartered | 1.50% Fixed | 2y | $2,300 | FC12 |
| Maybank/CIMB/RHB/etc. | 1.30%-1.78% Fixed | 2-3y | $2,000+ | Competitive for larger loans |
Rates for min $500k; check Homejourney for personalized quotes. DBS leads fixed via FHR6; OCBC for HDB volume.[1][3][4]
Bank Strengths
- DBS: Lowest fixed 1.35%, generous rebates up to $2,800 for $1.5m+.[3][4]
- OCBC: 7x refinancing growth; $4,100 savings on $500k.[2]
- UOB: Flexible FC options post-Year 1.[3]
- HSBC/StanChart: Strong floating for rate optimists.[3]
Compare full refinancing rates comparison on Homejourney. Related: 2025 Rates Comparison.
5. Break-Even Analysis and Hidden Costs
Break-even = Total Costs / Monthly Savings. E.g., $3k costs, $300/mo savings = 10 months.[2] On $400k from 2.6% HDB to 1.55% bank: ~$3,600/yr savings.[1]
Hidden costs: Legal $2-3k (rebated), Valuation $500, Discharge $200, Clawback (2-3% if early), Processing $100-500. Banks rebate most for refi.[3]
Example: $500k loan, 3% to 1.6%: $1,000/mo saved. $3.5k costs = 3.5-mo break-even. See Calculator Guide and Homejourney's tool at https://www.homejourney.sg/bank-rates#calculator.
Hidden Costs Checklist
- Legal/Conveyance fees: $2,000-$3,000 (rebated)
- Valuation: $500-$1,000
- Clawback: Up to 1.5% if pre-lock-in
- Admin/Discharge: $300-$700
Refi only if break-even <24 months. Details in Hidden Costs Guide.
6. Step-by-Step Refinancing Guide
- Check Eligibility: Use Homejourney calculator; TDSR <60%, MSR <30% income.
- Compare Rates: Via Homejourney bank-rates.
- Gather Docs: NRIC, Title Deed, Income slips (3-6m), Current loan stmt. Singpass auto-fills.
- Apply Multi-Bank: One form on Homejourney to DBS/OCBC/etc.
- Valuation & Approval: 2-4 weeks; bank funds new loan, discharges old.
- Complete: 1-2 months total. Track on Homejourney.
Timeline: 4-8 weeks. Pro Tip: Apply near lock-in end. See Timing Guide.
7. Money-Saving Strategies and Negotiation Tips
Leverage competition: Submit via Homejourney for multiple offers. Negotiate +0.05% off or extra rebate.[3]
- Ask for legal waiver extensions.
- Bundle with credit cards/insurance for perks.
- Time for promotions (e.g., DBS $2,800 rebate).
- Combine with cash-out for renovations (TDSR limits apply).
2026 Outlook: Modest rate drops; secure now. Homejourney WhatsApp experts for free advice.
8. How Homejourney Simplifies Refinancing
Homejourney prioritizes your safety with verified rates, Singpass integration, and one-click multi-bank apps. Compare top banks refinancing, calculate savings, apply securely—no branch hopping.
- Real-Time SORA:
References
