Decoupling Property Mortgage: Bank Rate Comparison Guide
When decoupling a property in Singapore, the remaining owner must refinance the full mortgage in their sole name, making bank selection critical to approval odds and long-term costs. This guide compares refinancing rates and approval criteria across major lenders like DBS, OCBC, UOB, HSBC, and Standard Chartered to help you navigate the decoupling mortgage process with confidence.
Decoupling involves one spouse transferring their ownership share to the other via a genuine sale at market value, allowing the exiting co-owner to purchase a second property ABSD-free as a first-timer[1][2]. However, the remaining owner must immediately qualify for the full loan alone—a process that hinges on income, credit, and Total Debt Servicing Ratio (TDSR) compliance at 60% of gross monthly income[1]. Banks assess this risk differently, meaning your choice of lender directly impacts approval likelihood and refinancing costs.
Understanding SORA Rates and Decoupling Mortgage Costs
Most Singapore banks now price home loans against SORA (Singapore Overnight Rate Average) rather than fixed board rates, making rate tracking essential when timing your decoupling refinance[1]. SORA-based loans typically offer spreads of 1.3% to 1.8% above the 3-month or 6-month SORA benchmark, directly affecting your monthly payments.
The chart below shows recent SORA trends to help you understand how rates have moved and plan your refinancing timeline:
As you can see from the chart above, SORA fluctuations of even 0.25% significantly impact refinancing costs. For a $1.2M decoupling refinance over 25 years, a 0.5% rate difference equals roughly $250–$300 monthly savings—critical when TDSR limits your borrowing power[1]. Homejourney's real-time SORA tracking lets you monitor these trends and time your refinance application when rates favor your situation. Visit Bank Rates to compare live rates from all major lenders and calculate your exact monthly obligations before committing.
Key Mortgage Implications When Removing a Co-Owner
Decoupling shifts 100% mortgage liability to one spouse, triggering three critical changes: loan transfer approval, TDSR recalculation, and potential refinancing at current rates[1][2]. Unlike a normal sale where both parties negotiate, here the remaining owner must prove sole income sufficiency—a hurdle many couples underestimate.
TDSR Impact: The full outstanding loan counts toward your 60% debt servicing cap. If you earn $8,000 monthly and the remaining mortgage is $4,000, your TDSR is already 50%—leaving only $800 for other debts (car loans, credit cards, personal loans)[1]. Banks stress-test at 4% interest per 2025 guidelines, meaning they calculate affordability assuming rates rise 1.5% above current levels[1]. This conservative approach protects you but reduces approval odds if your income is marginal.
CPF Refund Timing: The exiting co-owner's CPF principal plus 2.5% accrued interest must be refunded to their account before the transfer completes[1]. This typically takes 21–35 days, during which the remaining owner's refinance application proceeds in parallel. Coordinating these timelines with your bank is essential to avoid delays.
Bank-by-Bank Rate Comparison for Decoupling Refinance
Homejourney prioritizes your safety by verifying all bank data and helping you compare offers transparently. Here's how major lenders approach decoupling refinances:
DBS Bank
DBS is Singapore's largest mortgage lender, offering competitive SORA-based packages with spreads typically at 1.3%–1.5% for decoupling refinances[1]. Their digital approval process via MyInfo integration speeds applications, and they accept income from self-employed professionals with 2 years' tax returns. DBS's strength lies in speed—many approvals complete within 5–7 days—but they apply strict TDSR limits with minimal flexibility. Best for: Salaried professionals with strong credit and income above $10,000 monthly.
OCBC Bank
OCBC offers SORA spreads of 1.4%–1.6% and is known for flexible assessment of self-employed income, accepting accountant-prepared financials. Their refinancing process includes optional cashback (up to 0.8% of loan amount for amounts above $500k), reducing upfront costs[1]. However, OCBC's approval timeline averages 10–14 days, slightly longer than DBS. Best for: Self-employed owners and those seeking cashback to offset refinancing fees.
UOB (United Overseas Bank)
UOB provides SORA spreads of 1.35%–1.55% and stands out for accepting co-borrowers (e.g., adult children) to boost TDSR eligibility—valuable if your sole income falls short[1]. Their online portal allows real-time application tracking, and they offer rate locks for 30 days during processing. Approval typically takes 7–10 days. Best for: Owners with marginal income who can add a co-borrower, or those wanting rate certainty during approval.
HSBC
HSBC's decoupling refinances carry SORA spreads of 1.45%–1.7%, slightly higher than competitors, but they excel in relationship banking—existing HSBC customers often receive preferential rates and faster approval[1]. Their mortgage brokers provide personalized guidance, and they accept non-traditional income sources (e.g., rental, investment returns) with supporting documentation. Approval timeline: 10–12 days. Best for: HSBC customers or those with complex income profiles requiring specialist assessment.
Standard Chartered
Standard Chartered offers SORA spreads of 1.5%–1.75% and is preferred by expats and those with overseas income. They provide flexible documentation and accept income from multiple sources without strict verification, though spreads reflect this flexibility[1]. Processing time averages 12–14 days. Best for: Expats, international income earners, or those with non-standard employment.
Maybank & CIMB
Both regional lenders offer competitive SORA spreads (1.4%–1.6%) and are increasingly popular for decoupling refinances. Maybank's strength is customer service and local branch presence; CIMB excels in online processing speed[1]. Approval timelines: 7–10 days for both. Best for: Those prioritizing customer service (Maybank) or digital convenience (CIMB).
Refinancing Costs and Hidden Fees
Beyond interest rates, decoupling refinances incur several unavoidable costs that reduce net savings. Understanding these prevents budget surprises:
- Buyer's Stamp Duty (BSD): Paid on the transferred share (e.g., 50% of $1M property = $500k share value). BSD rates range 1%–4% depending on property value, totaling $5,000–$20,000 for typical Singapore properties[1].
- Legal Fees: Lawyer charges for sale & purchase agreement, CPF refund coordination, and SLA registration typically $3,000–$5,000[1].
- Refinance Processing Fees: Banks charge $2,000–$5,000 to process the new loan, plus valuation fees ($500–$1,500) if the bank revalues the property[1].
- Lock-in Penalties: If the original loan has a remaining lock-in period (common for fixed-rate mortgages), early repayment triggers penalties of 0.25%–1% of the outstanding balance[1].
Total decoupling refinance costs typically range $15,000–$30,000 depending on property value and loan structure. Homejourney's mortgage calculator at Bank Rates helps you estimate exact costs before applying, ensuring no surprises.
TDSR Stress-Testing and Approval Odds
Banks now stress-test decoupling refinances at 4% interest—1.5% above current SORA levels—to ensure you can afford payments if rates rise[1]. This conservative approach protects borrowers but reduces approval odds for marginal incomes.
Example:
