Hidden Refinancing Costs Singapore: Compare Rates Safely | Homejourney

Before switching your home loan, the hidden costs of compare refinancing rates from all banks before you switch you need to know can erase your savings. Common fees include legal costs (S$1,500–S$3,000), valuation fees, and penalties up to 1.5% of your loan if within lock-in periods, but banks often subsidize these for loans over S$300K (HDB) or S$400K (private).[1][2]

At Homejourney, we prioritize your safety by verifying rates from DBS, OCBC, UOB, HSBC, Standard Chartered, and more, helping you compare refinance rates transparently. This cluster dives into these pitfalls, linking back to our pillar guide on Singapore Home Loan Refinancing Complete Guide for full coverage.

Why Compare Refinancing Rates from All Banks Matters

Finding the best refinancing rate requires a bank comparison refinance across major lenders like DBS, OCBC, UOB, Maybank, and CIMB. However, chasing the lowest rate without spotting hidden costs leads to surprises. For instance, refinancing a S$500K HDB loan might save S$47K in interest over time, but S$3K in fees reduces net gains to S$44K.[3]

Homejourney's bank-rates page lets you compare refinancing rates from all banks instantly, with real-time SORA tracking. Use our refinancing calculator to factor in costs upfront: Homejourney Mortgage Calculator.

Top Hidden Costs When You Switch Mortgage Rate

1. Legal and Valuation Fees: Expect S$2,000–S$3,000 for lawyers and property valuation. Good news: Banks subsidize fully for HDB loans over S$300K or private over S$400K, making net costs near zero.[1][2]

2. Lock-in Penalties: Breaking early? Pay 1.5% of remaining loan (e.g., S$7,500 on S$500K). Wait out the 2–3 year lock-in or check your statement for expiry.[3][5]

3. Clawback or Cancellation Fees: If refinancing before full disbursement (e.g., at TOP), face 1% on undisbursed amount plus S$1,000 minimum. Prepayment penalties hit 0.75–2% during windows.[5][6]

4. Admin/Conversion Fees: Repricing within-bank costs S$800–S$3,000, often higher than subsidized refinancing.[3]

Real example: A Punggol HDB owner with S$400K loan saved S$200/month by switching from DBS to OCBC, but S$2K legal fees meant a 10-month break-even. Use Homejourney to simulate: submit one app via Singpass for competing offers.

Break-Even Analysis: Is Refinancing Worth It?

Calculate break-even: (Monthly savings × months to recover fees). For S$150/month savings and S$2K fees, break-even is 13 months. Stay longer? Refinance wins.[2][3]

Current 2026 rates: 3M SORA at 1.3–1.4%, favoring floats.[8] Fixed packages from banks like UOB start at 1.35% p.a.[2] Track trends on Homejourney's bank rates comparison.

The chart below shows recent interest rate trends in Singapore:

Rates have stabilized post-2025 dips, per MAS data, making now ideal for switch mortgage rate if past lock-in.[8][9]

Actionable Steps to Compare Refinance Rates Safely

Check Eligibility: Use Homejourney's TDSR/MSR calculator for limits (TDSR 55% of income).TDSR & MSR Calculator: Check Singapore Loan Limits | Homejourney
Review Lock-in: Log into bank portal or call for exact dates—avoid penalties.
Compare on Homejourney: View best refinancing rate from all banks, including cash rebates (up to S$3,300).[2] See our guide: How to Use Homejourney Bank Rate Comparison: 2026 Guide
Factor Costs: Negotiate subsidies; apply multi-bank via one-click with Singpass.Benefits of Multi-Bank Application in One Click | Homejourney
Time Redemption: Align with interest reset dates to dodge extra 0.5–2% fees.[5]
Track Post-Switch: Monitor via Homejourney for reprice opportunities.

Pro tip: For HDB upgraders in areas like Sengkang, combine refinancing with property search on Homejourney property search.

Homejourney: Your Safe Path to Savings

Homejourney builds trust with verified rates, no hidden agendas. Unlike risky switches, our platform lets banks compete—get DBS vs. HSBC offers from one Singpass app. Connect with our mortgage brokers for personalized advice: Apply now.

FAQ: Hidden Costs of Compare Refinancing Rates

Q: What are typical refinancing fees in Singapore?
A: Legal/valuation S$2K–S$3K (often subsidized), plus 1.5% lock-in penalty. HDB over S$300K usually fee-free.[1][2]

Q: How do I find the best refinancing rate without costs eating savings?
A: Use Homejourney's refinance comparison tool at bank-rates—includes subsidies and break-even calc.Compare Refinancing Rates from All Banks: Homejourney Guide

Q: Can I refinance HDB to bank loans easily?
A: Yes, if MSR compliant. Banks like OCBC offer full subsidies over S$250K outstanding.[2]

Q: What's the break-even for refinancing?
A: Fees ÷ monthly savings. E.g., S$2.5K fees / S$200 savings = 12.5 months.[3]

Q: How to apply Singpass for fast refinancing?
A: Via Homejourney: instant verification, multi-bank quotes.Step-by-Step Singpass Loan Application Guide | Homejourney

Disclaimer: Rates change; consult Homejourney brokers or advisors. Homejourney verifies data for your safety—not financial advice.

Ready to compare refinance rates? Start at Homejourney bank-rates and switch smarter. Link back to our pillar for full refinancing mastery.