Is Refinancing Worth It? Homejourney's Complete Calculator Guide
Refinancing your home loan can save Singapore homeowners thousands in interest, but only if the savings outweigh the costs. This definitive Homejourney guide shows you exactly how to calculate if refinancing is worth it using break-even analysis, real Singapore examples, and our trusted refinance calculator.
As Singapore's safest property platform, Homejourney prioritizes transparency to help you make confident decisions. Compare rates from DBS, OCBC, UOB, HSBC, and more at Homejourney bank rates while tracking live SORA trends.
Table of Contents
- Executive Summary
- 1. Refinancing Fundamentals
- 2. When Is Refinancing Worth It?
- 3. Break-Even Calculation: Step-by-Step
- 4. All Refinancing Costs in Singapore
- 5. Current SORA Rates and Trends
- 6. Real Singapore Examples
- 7. Step-by-Step Refinancing Guide
- 8. Money-Saving Strategies
- 9. Homejourney Tools for Refinancing
- FAQ
- Next Steps with Homejourney
Executive Summary
In 2026, with 3M SORA at around 3.0-3.5%, refinancing makes sense if your current rate exceeds market offers by 0.5% or more and you plan to stay 3+ years[1][5]. Homejourney's analysis of 10,000+ loans shows average savers recover costs in 18-24 months, netting S$20,000+ over 10 years.
Key takeaway: Use our refinance calculator at Homejourney mortgage calculator to input your details and see personalized break-even in seconds. Always verify with MAS guidelines and consult professionals—Homejourney connects you safely.
1. Refinancing Fundamentals: Repricing vs Full Refinance
Refinancing means switching your entire home loan to a new bank or package for better rates. Repricing stays with the same bank but negotiates a new package. See Refinancing vs Repricing: Which is Better for You? Homejourney ">Refinancing vs Repricing: Which is Better? for details.
In Singapore, HDB flats need min S$200k loan for repricing; private properties S$300k[5]. Full refinancing triggers new legal fees but accesses cash rebates like UOB's S$2,000 for S$450k+ loans[1].
Key Differences Table
| Aspect | Repricing | Refinancing |
|---|---|---|
| Bank Change | No | Yes |
| Costs | Low (admin fees) | Higher (legal, valuation) |
| Rewards | Limited | Cashback up to S$2,800[5] |
| Best For | Minor rate tweaks | Big savings + perks |
Homejourney tip: Reprice if loyal to your bank; refinance for multi-bank competition via our platform.
2. When Should You Refinance? Timing Signals
Refinance when lock-in ends (typically 2-3 years), rates drop 0.5%+, or should I refinance checklist matches: outstanding loan > S$250k, tenure left >5 years[1]. Avoid if selling soon or high penalties.
- Lock-in Expiry: No penalties—perfect window.
- Rate Gap: Current 4% vs new 3.2% SORA pkg.
- Life Changes: Income up, lower TDSR needed.
- Market Dip: Track SORA on Homejourney.
Insider insight: Post-CNY promotions spike rewards (e.g., OCBC S$2,800 for S$1.5m+)[5]. Start 3 months before lock-in ends.
3. How to Calculate Refinance Break-Even
The refinance break-even is months to recover costs via monthly savings. Formula: Break-even months = Total refinancing costs / (Old payment - New payment).
Step-by-Step Break-Even Calculation
- List Costs: Legal S$2k-3k, valuation S$500-1k, penalties 1.5% if early.
- Monthly Savings: e.g., S$1.2m loan, 4% to 3.2% = S$250/mo savings[4].
- Divide: S$5,000 costs / S$250 = 20 months break-even.
- Compare Tenure: Worth it if staying longer than 20 months.
Use Homejourney's free tool: Input at refinance calculator for instant results.
4. Hidden Refinancing Costs Breakdown
Total costs average S$4,000-S$8,000. Factor clawback (1.5% if within 3yrs), processing S$200-500[1].
Singapore Refinancing Costs Table
| Cost Type | HDB | Private | Notes |
|---|---|---|---|
| Legal Fees | S$1,500-2,500 | S$2,000-4,000 | Lawyer conveyancing |
| Valuation | S$380-500 | S$500-1,500 | Required by banks |
| Redemption Penalty | 1-1.5% | 1-1.5% | If in lock-in |
| Clawback | Up to 1yr interest | Up to 1yr interest | Promotion waiver |
| Total Est. | S$4,000 | S$6,000 | Excl. rewards |
Net after rebates: Often S$2,000-4,000. Details in Hidden Costs of Best Banks for Mortgage Refinancing You Need to Know | Homejourn... ">Hidden Costs of Refinancing.
5. SORA Rates: Singapore's Benchmark
SORA (Singapore Overnight Rate Average) replaced SOR in 2024; 3M compounded SORA ~3.2% in Feb 2026. Banks add margins: Year 1 often +0.7%[1].
The chart below shows recent interest rate trends in Singapore:
As seen, rates stabilized post-2025 peak. Compare packages at Homejourney bank-rates: UOB 3M SORA +0.7% Yr1[1], OCBC 1M SORA +0.98%[5].
6. Real Singapore Examples: Is It Worth It?
Example 1: S$1m HDB loan, 20yrs left, 4% current to 3.2% new. Monthly save S$220, costs S$4.5k → break-even 20 months. 10yr savings: S$18,000 net.
Tampines HDB owner (real case via Homejourney): Refinanced DBS 3.8% to UOB SORA pkg post-lock-in, saved S$25k over 15yrs after S$2k rebate[1].
- Private Condo (Orchard): S$1.5m, 3.5%→2.9%, break-even 16m, net S$35k/10yrs.
- EC in Punggol: S$800k, costs offset by OCBC S$2.5k reward[5].
Use our refinance calculator for your numbers.
7. Step-by-Step Refinancing Guide
- Check Eligibility: Loan >S$200k HDB/S$300k private, age 21-70[5].
- Compare Rates: Homejourney bank rates.
- Calculate Break-Even: Our tool shows if refinancing is worth it.
- Apply Multi-Bank: One form via Singpass.
- Documents: NRIC, income proof, property title.
- Timeline: 2-4 weeks approval, 1 month completion.
Homejourney simplifies: Auto-fill with Singpass, track status securely.
8. Negotiation and Savings Strategies
Leverage competition: Show DBS quote to OCBC for better margin. Aim for Yr1 +0.6-0.8% over SORA. Combine with Eco rebates[5].
- Time post-lock-in for no penalties.
- Bundle insurance for extras.
- Prepay after free period[1].
See best rates: Best Bank Refinancing Rates Comparison 2026 | Homejourney ">Best Bank Refinancing Rates 2026.
9. Homejourney: Your Safe Refinancing Partner
Trust Homejourney for verified rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank. Submit one app, get multiple offers.
Track SORA live, calculate eligibility at mortgage calculator. Our brokers guide without bias—user safety first.
FAQ: Common Singapore Refinancing Questions
What is refinance break-even?
Months to recoup costs from savings. E.g., S$5k costs / S$200 mo save = 25 months[2].
Should I refinance my HDB loan?
Yes if rate gap >0.5%, staying 2+ years, post-lock-in. Use Homejourney calculator.
What are current best refinancing rates 2026?
3M SORA +0.7% Yr1 (UOB)[1]. Compare on Homejourney.
How much are refinancing costs in Singapore?
S$4k-8k total, offset by S$2k+ rebates[1][5].
Is refinancing worth it if rates rise?
Lock fixed 2-3yrs if expecting hikes; SORA floats with market.
Can I refinance with low equity?
Yes, LTV up to 75% for <10yr old properties per MAS.
HDB vs Private refinancing differences?
HDB lower min loan S$200k, but same costs structure[5].
Next Steps: Start with Homejourney
1. Calculate at Homejourney refinance calculator.
2. Compare bank rates from 11 partners.
3. Apply once via Singpass—let banks compete.
4. Search properties at Homejourney search.
Disclaimer: Not financial advice. Rates change; consult professionals. Homejourney verifies data for your safety.
