How to Save Money by Refinancing Your Mortgage: The Definitive Homejourney Guide

Refinancing your mortgage can help you save money refinancing by securing a lower interest rate, reducing your monthly mortgage payment, and cutting overall mortgage costs. This comprehensive pillar guide from Homejourney equips Singapore property owners with everything needed to make informed decisions in a trusted, transparent way.

Whether you're an HDB upgrader or private property investor, Homejourney prioritizes your safety with verified data, real-time tools, and multi-bank comparisons. Use our bank rates page to compare DBS, OCBC, UOB rates instantly and submit one application via Singpass.

Table of Contents

• Executive Summary
• 1. Refinancing Fundamentals
• 2. When to Refinance: Timing Your Move
• 3. Financial Analysis: Calculate Your Savings
• 4. Step-by-Step Refinancing Guide
• 5. Advanced Money-Saving Strategies
• 6. HDB vs Private Property Refinancing
• 7. Common Pitfalls and How to Avoid Them
• FAQ
• Next Steps with Homejourney

Executive Summary

In Singapore's competitive 2025-2026 mortgage market, refinancing offers real opportunities to lower interest rate and reduce mortgage payment. With SORA at 3-year lows around 2.9%, banks like Standard Chartered offer packages from 2.294% p.a., potentially saving homeowners thousands annually[1][6].

Homejourney's refinance savings calculator on our mortgage calculator lets you input your loan details for instant projections. Expect 0.5% rate drops to yield S$10,000+ savings over 2 years on a S$1M loan, after costs. This guide covers calculations, steps, and insider tips for maximum refinance savings calculator results.

Disclaimer: This is educational content. Consult Homejourney mortgage brokers or financial advisors for personalized advice. Rates as of Dec 2025; subject to change[1][2].

1. Refinancing Fundamentals: Repricing vs Full Refinancing

Refinancing means switching your home loan to a new bank or package for better terms, while repricing stays with your current bank but negotiates new rates. Full refinancing unlocks promotions from DBS, OCBC, UOB, HSBC, but involves costs; repricing is cheaper but limited[3].

Key Differences

For deeper dive, see our cluster Refinancing vs Repricing guide.

Understanding SORA: Singapore's Key Benchmark

SORA (Singapore Overnight Rate Average) replaced SOR/SIBOR in 2024 as the floating rate benchmark, published daily by ABS. Most loans are 3M SORA + 0.35%-1.00%, currently ~2.3%-3.0%[1][6]. Fixed rates start at 1.35% for Year 1 on large loans[2].

The chart below shows recent interest rate trends in Singapore:

As seen, rates hit 3-year lows in late 2025, ideal for refinancing to cut mortgage costs[6]. Track live SORA on Homejourney's bank-rates page.

2. When to Refinance: Timing Your Move

Optimal timing is post-lock-in (2-3 years), when rates drop 0.5%+, and 2+ years remain on your loan. Avoid mid-lock-in penalties (1-1.5% of loan)[3]. With 2026 forecasts stable at ~2.5-3%, now's prime[6].

Lock-In Period Strategies

• Check your loan docs or bank statement for expiry.
• Start shopping 3-6 months early via Homejourney's multi-bank tool.
• Insider tip: Banks like SCB offer no-penalty early exit for high-value clients[1].

For HDB, MAS rules cap LTV at 75% for second loans; private up to 55%[HDB/URA guidelines].

3. Financial Analysis: Calculate Your Savings

Use break-even analysis: (Refi costs) / (Monthly savings) = months to recoup. Example: S$1M loan, current 3.5%, new 2.5% saves S$500/mth. Costs S$3,000 (subsidized to net S$0) = break-even 0 months[1].

Real Savings Example Table

Try Homejourney's refinance savings calculator for your numbers. See how to calculate if refinancing is worth it.

Hidden Costs Breakdown

• Legal: S$1,800-2,500 (subsidized by new bank)[1]
• Valuation: S$350-500 (often waived)
• Clawback: If promotions unmet, up to 1%[3]
• Net: Often zero with rebates from DBS/OCBC[2]

4. Step-by-Step Refinancing Guide

Homejourney simplifies with one application to DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank.

1. Compare Rates: Use Homejourney bank-rates[1][2].
2. Check Eligibility: LTV, DSR via calculator.
3. Gather Docs: NRIC, income proof, property title, Singpass ready.
4. Apply: Submit once via Singpass on Homejourney – banks compete.
5. Valuation & Legal: 2-4 weeks.
6. Close: Funds transfer, 6-8 weeks total[3].

Track via Homejourney dashboard for transparency.

5. Advanced Money-Saving Strategies

Negotiate: Leverage offers from multiple banks via Homejourney. Opt for cash rebates (S$2k+), free conversions post-lock-in[1][2]. Combine with shorter tenure to cut mortgage costs.

• Shop Year 1-2 lows: 1.35%-2.29%[1][2]
• Cash-out refi for investments (if LTV allows).
• Switch fixed to SORA if rates falling[6].

Insider tip: Apply end-month when quotas open, higher rebates for S$1M+[1].

6. HDB vs Private Property Refinancing

HDB: Min S$200k, 75% LTV max, HDB approval needed. Private: Better rates for S$500k+, up to 55% LTV. Both eligible for same bank promos[1][HDB].

Search HDB/private options on Homejourney property search.

7. Common Pitfalls and How to Avoid Them

• Ignore costs: Always calculate net savings with Homejourney tool.
• Miss lock-in: Time via statements.
• Poor negotiation: Let banks bid via multi-app.
• Rate rise risk: Choose convertible packages[3].

FAQ: Singapore Refinancing Questions

What is the best time to refinance my mortgage in Singapore?

Post-lock-in when rates drop 0.5%+, like now with SORA lows[6].

How much can I save refinancing a S$1M loan?

References

1. Singapore Property Market Analysis 1 (2025)
2. Singapore Property Market Analysis 6 (2025)
3. Singapore Property Market Analysis 2 (2025)
4. Singapore Property Market Analysis 3 (2025)