Cash Out Refinancing Singapore: Homejourney Ultimate Guide
This definitive Homejourney guide explains cash out refinancing Singapore, also known as equity cash out or cash out mortgage, for private property owners. Discover how to extract home equity safely, compare term loan Singapore options from DBS, OCBC, UOB and more, while prioritizing user trust and transparency.
Homejourney verifies all information to help you make confident decisions in a secure environment. Whether consolidating debt or funding needs, learn step-by-step processes, real calculations, and insider tips unique to Singapore's market.
Table of Contents
- What is Cash Out Refinancing in Singapore?
- Eligibility for Cash Out Refinance Singapore
- How Much Can You Borrow? Calculations Explained
- Cash Out Refinancing Interest Rates & SORA Trends
- Cash Out Refinancing vs Repricing vs Term Loan
- When Should You Use Cash Out Refinancing?
- Hidden Costs and Break-Even Analysis
- Step-by-Step Guide to Cash Out Refinancing
- How Homejourney Makes It Safe and Simple
- Money-Saving Strategies and Negotiation Tips
- Risks, Limitations and Disclaimers
- FAQ: Cash Out Refinancing Singapore
What is Cash Out Refinancing in Singapore?
Cash out refinancing Singapore allows private property owners to extract home equity by replacing their existing mortgage with a larger loan, pocketing the difference in cash.[1][2] Unlike HDB flats, which restrict this due to government regulations, it's available for condos and landed properties.
For example, if your S$1.6 million condo has S$300,000 outstanding loan, you could refinance to S$800,000 and receive S$500,000 cash.[1] This cash out mortgage uses your home as collateral, offering low rates around 1-2% p.a., far below personal loans at 4-24%.[1][2]
Homejourney emphasizes safety: always assess if this aligns with your financial goals. It's ideal for debt consolidation, education fees, or emergencies, but increases your total debt.[1]
Key Definition: Cash out refinancing = New larger loan - Existing loan balance = Cash payout to you.[3]
Why It's Gaining Popularity in 2026
With property values rising and SORA rates stabilizing, more owners are using equity cash out for liquidity without selling.[9] International investors also leverage it for structured financing.[7]
Eligibility for Cash Out Refinance Singapore
To qualify for cash out refinancing Singapore, you must own private property (condo or landed), have sufficient equity, and meet MAS lending rules like TDSR (Total Debt Servicing Ratio ≤60%).[1][2]
Main Requirements:
- Singapore Citizen/PR or eligible foreigner with valid pass.
- Property valuation ≥ outstanding loan + desired cash out.
- Age 21+; credit score typically ≥620.[3]
- No active HDB loan (private only).[1]
- CPF OA funds considered in calculations.[1]
Banks like DBS, OCBC, UOB assess income stability and DTI. Use Homejourney's eligibility calculator at https://www.homejourney.sg/bank-rates#calculator for instant checks.
HDB vs Private Property Rules
HDB flats prohibit cash out refi to protect public housing affordability. Private properties allow up to 80% LTV (Loan-to-Value).[1][2]
How Much Can You Borrow? Calculations Explained
The formula for cash out refinance Singapore is: Max Loan (60-80% of market value) - Outstanding Loan - CPF Used = Cash You Get.[1][2]
Example Table: Cash Out Calculation
| Property Value | Outstanding Loan | CPF Used | LTV | Max Cash Out |
|---|---|---|---|---|
| S$1M | S$300K | S$150K | 80% | S$350K |
| S$2M | S$800K | S$300K | 60% (multiple loans) | S$200K |
80% LTV for single loans; 60% if multiple.[1][2] Get free valuation via Homejourney partners.
Cash Out Refinancing Interest Rates & SORA Trends
Cash out mortgage rates are low at 1-2.5% p.a., pegged to SORA (Singapore Overnight Rate Average) + margin (0.5-1%).[1] Fixed rates available short-term.
SORA replaced SOR in 2024; track 3M/6M compounds. Rates expected stable in 2026.[9]
The chart below shows recent interest rate trends in Singapore:
As seen, SORA hovered ~2.5-3% recently. Compare live rates from DBS, OCBC, UOB, HSBC, Standard Chartered on https://www.homejourney.sg/bank-rates.
Bank Rate Comparison (2026 Snapshot)
Typical Cash Out Rates: DBS 2.2%, OCBC 2.1%, UOB 2.3% (SORA-based; subject to change).Best Bank Refinancing Rates Comparison 2026: Homejourney Guide
Cash Out Refinancing vs Repricing vs Term Loan Singapore
Refinancing: New loan, possibly different bank, allows cash out.[5]
Repricing: Same bank, lower rate, no cash out; cheaper fees.[5]
Term Loan Singapore: Second loan on equity, shorter tenure, higher rates than cash out refi.[4]
| Option | Cash Out? | Fees | Best For |
|---|---|---|---|
| Cash Out Refi | Yes | S$2-3K | Liquidity needs |
| Repricing | No | Lower | Rate savings |
| Term Loan | Yes (limited) | Varies | Short-term |
Read more: 再融资vs重新定价：哪个更适合你？Homejourney指南
When Should You Use Cash Out Refinancing?
Use equity cash out for high-value needs: debt consolidation (save ~S$150K vs personal loans), medical emergencies, overseas tuition, or low-cost capital for business.[1][2]
Real Example: S$100K debt at 24% p.a. takes 7 years at S$2.5K/month. Cash out at 1.5% clears in 2 years, saving massively.[1]
Avoid if planning to sell soon or rates rise. Insider tip: Time before lock-in expiry (2-3 years).如何通过再融资节省房贷开支：Homejourney权威指南
Hidden Costs and Break-Even Analysis
Costs: Valuation S$500-1K, legal fees S$1.5-2K, admin S$500; total S$2-3K.[1] Clawback if refinance within lock-in.
Break-Even Formula: Fees / Monthly Savings = Months to Recover.
Example: S$3K fees, S$300/month savings = 10 months break-even.如何计算再融资是否值得：Homejourney新加坡房产指南
Factor CPF interest offset. Use Homejourney calculator for precise math.
Step-by-Step Guide to Cash Out Refinancing
- Assess Equity: Get valuation via bank or Homejourney partners.
- Compare Rates: Use https://www.homejourney.sg/bank-rates for DBS, OCBC etc.
- Apply: Submit via Singpass on Homejourney; one form, multiple banks.
- Valuation & Approval: 2-4 weeks; docs: income proof, title deed.
- Legal Completion: Pay fees, receive cash (4-6 weeks total).
- Disburse: Funds in account; new repayment starts.
Timeline: 1-2 months. Track on Homejourney dashboard.Hidden Costs of Mortgage Refinancing You Need to Know | Homejourney
How Homejourney Makes It Safe and Simple
Homejourney prioritizes your safety with verified bank rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank.
- Compare refinancing rates instantly.
- Submit one application to all banks via Singpass.
- Real-time SORA tracker.
- Mortgage brokers for personalized advice.
- Link properties via https://www.homejourney.sg/search.
Apply securely at https://www.homejourney.sg/bank-rates. We listen to feedback to improve your journey.
Money-Saving Strategies and Negotiation Tips
Negotiate: Leverage multiple offers via Homejourney. Ask for cash rebates (up to S$2K+ legal subsidies).[8]
- Time pre-lock-in expiry.
- Combine with repricing for hybrids.
- Use for investments if ARY > loan rate.
Pro tip: Service in cash, not CPF, to maximize future cash out.[1]
Risks, Limitations and Disclaimers
Risks: Higher debt, foreclosure if default, rate hikes. Not for HDB; private only.[1] MAS rules apply; consult advisor.
Disclaimer: Homejourney provides education, not advice. Rates change; verify with banks. Past performance no guarantee.
FAQ: Cash Out Refinancing Singapore
Can HDB owners do cash out refinancing Singapore?
No, restricted to private properties.[1][2]
What is the max LTV for equity cash out?
60-80% of market value.[1]
How much does cash out refi cost?
S$2-3K in fees.[1]
Is cash out mortgage better than personal loan?
Yes for low rates, if equity sufficient.[1]
Which banks offer best cash out refinance Singapore rates?
Compare DBS, OCBC, UOB on Homejourney.
Can I use cash out for investment property?
Yes, but TDSR applies across portfolio.
How to calculate break-even for cash out refinancing?
Fees ÷ monthly savings.How to Calculate If Refinancing is Worth It: Homejourney Guide
Ready for cash out refinancing Singapore? Start safely with Homejourney at https://www.homejourney.sg/bank-rates. Find budget-fit properties at https://www.homejourney.sg/search and maintain with Aircon Services . Our verified tools ensure trust every step.
References
- Singapore Property Market Analysis 1 (2026)
- Singapore Property Market Analysis 2 (2026)
- Singapore Property Market Analysis 3 (2026)
- Singapore Property Market Analysis 9 (2026)
- Singapore Property Market Analysis 7 (2026)
- Singapore Property Market Analysis 5 (2026)
- Singapore Property Market Analysis 4 (2026)
- Singapore Property Market Analysis 8 (2026)
