Is Refinancing Worth It? Homejourney's Complete Calculator Guide
This definitive guide from Homejourney equips Singapore homeowners with everything needed to calculate if refinancing is worth it. Learn break-even analysis, hidden refinancing costs, and use our refinance calculator to project savings on your HDB or private property loan.
Homejourney prioritizes your financial safety by verifying rates from DBS, OCBC, UOB, and more, ensuring transparent decisions in Singapore's dynamic market. Whether you're assessing should I refinance or timing your move, this 2026 guide delivers actionable steps backed by official data.
Table of Contents
- 1. Refinancing Fundamentals: Repricing vs Refinancing Explained
- 2. When is Refinancing Worth It? Key Triggers
- 3. Break-Even Calculation: Your Refinance Calculator Guide
- 4. All Refinancing Costs in Singapore (2026 Breakdown)
- 5. Current SORA Rates and Market Trends
- 6. Step-by-Step Refinancing Process
- 7. Money-Saving Strategies and Negotiation Tips
- 8. How Homejourney Makes Refinancing Safe and Simple
- 9. FAQ: Common Refinancing Questions
1. Refinancing Fundamentals: Repricing vs Refinancing Explained
Refinancing means switching your home loan to a new lender for better rates or terms, while repricing stays with your current bank but changes the package.Refinancing is worth it when new lenders offer significantly lower rates or cash incentives not matched by your existing bank.[5]
In Singapore, refinancing accesses promotions from DBS, OCBC, UOB, HSBC, and others, often with cash rebates covering costs. Repricing is faster (5 weeks vs 13 weeks) but limits options to one bank's packages.[5]
| Feature | Refinancing | Repricing |
|---|---|---|
| Lender Change | Yes, to new bank | No, same bank |
| Timeline | 13 weeks | 5 weeks |
| Costs | Legal, valuation (often subsidized) | Admin fees only |
| Rate Savings Potential | Higher | Lower |
For HDB owners in mature estates like Toa Payoh, refinancing to UOB can yield S$2,000 cash for loans over S$450,000 on completed properties.[1] Homejourney compares these across all major banks safely.
Lock-In Periods and Penalties
Most loans have 2-3 year lock-ins; breaking early incurs 1.5% penalties. Wait until expiry for cost-free switches.[5] Check your loan docs or use Homejourney's tools for clarity.
2. When is Refinancing Worth It? Key Triggers
Refinance if new rates save >0.2% p.a., post-lock-in, or with strong cash rebates. In 2026, SORA at ~3% makes it ideal if your fixed rate exceeds 4%.[4]
- Rate Drop: Market shifts like falling SORA trigger savings.
- Lock-In Ends: No penalties after 2-3 years.
- Cash Rebates: S$2,000+ from banks like DBS for S$1M+ loans.[4]
- Tenure Adjustment: Shorten to pay off faster.
- Regulatory Changes: TDSR updates may improve eligibility.
Real example: A S$1M condo owner in Orchard switches from 4% fixed to UOB's 3M SORA +0.7%, saving S$300/month after costs. See Homejourney bank rates for latest.
3. Break-Even Calculation: Your Refinance Calculator Guide
The refinance break-even is months needed for savings to cover costs. Formula: Break-even months = Total Costs / Monthly Savings.[2][3]
Example: S$1M loan, current 4% (S$4,774/month), new 3.5% (S$4,486/month). Savings: S$288/month. Costs: S$3,000 net. Break-even: 10 months (S$3,000 / S$288).
Step-by-Step Break-Even Math
- Calculate current monthly payment: Principal + Interest.
- Estimate new payment at lower rate.
- Monthly savings = Current - New.
- Net costs = Fees - Rebates.
- Break-even = Net costs / Savings.
If break-even < remaining tenure, refinancing is worth it. Use Homejourney's refinance calculator for instant results with Singpass.
| Loan Amount | Rate Drop | Net Costs | Break-Even (Months) |
|---|---|---|---|
| S$500k | 0.5% | S$1,500 | 12 |
| S$1M | 0.5% | S$2,000 | 14 |
| S$1.5M | 0.5% | S$2,500 | 15 |
4. All Refinancing Costs in Singapore (2026 Breakdown)
Key refinancing costs: Legal fees (S$2,000-3,000), valuation (S$500-1,500), discharge fee (S$200-500). Banks subsidize via rebates: UOB S$2,000 for S$450k+.[1][4]
- Legal: S$2,500 avg, often fully rebated.
- Valuation: S$800 for HDB, S$1,200 private.
- Clawback: If prepaid early, repay subsidized interest.
- Net: Often S$0-S$500 after S$2,000+ rebates.[4]
Insider tip: For Punggol HDB flats, valuations hold steady; factor CPF usage per HDB rules. Details in Hidden Costs of Refinancing: What You Must Calculate Before Switching Banks .
5. Current SORA Rates and Market Trends
SORA (Singapore Overnight Rate Average) is the key benchmark for floating loans, replacing SOR. Most banks peg to 3M Compounded SORA + margin (e.g., UOB +0.7% Year 2).[1]
The chart below shows recent interest rate trends in Singapore:
As seen, SORA stabilized ~3% in 2026, favoring switches from fixed >3.8%. Track live on Homejourney. Compare DBS vs OCBC in Best Bank Refinancing Rates Comparison 2026 | Homejourney .
6. Step-by-Step Refinancing Process
Homejourney simplifies with multi-bank apps via Singpass. Timeline: 3 months.
- Compare Rates: Use Homejourney bank-rates.
- Check Eligibility: TDSR <60%, LTV rules via HDB/MAS.
- Submit Application: One form to DBS, UOB, etc.
- Valuation & Legal: Bank handles.
- Disbursement: New loan pays old; get rebate.
Docs: NRIC, property title, income proof. Apply securely on Homejourney for verified banks only.
7. Money-Saving Strategies and Negotiation Tips
Let banks compete: Submit via Homejourney for multiple offers. Negotiate 0.1% lower margins or higher rebates. Combine with tenure shorten for max savings.
- Ask for extra cashback on S$1.5M+ loans (up to S$2,800).[4]
- Time post-SORA drop.
- Bundle with insurance for perks.
Pro tip: Existing bank counter-offers 80% of time—use new quotes as leverage. See repricing details in 再融资vs重新定价：哪个更适合你？Homejourney指南 .
8. How Homejourney Makes Refinancing Safe and Simple
Homejourney verifies rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, and more. Compare, calculate, apply in one secure platform prioritizing your trust.
- Singpass for instant verification.
- Multi-bank offers from one app.
- Real-time SORA tracking.
- Connect with our mortgage brokers.
Start at https://www.homejourney.sg/bank-rates. Search budget-friendly properties at property search.
9. FAQ: Common Refinancing Questions
What is refinance break-even?
Months for savings to offset costs. E.g., S$2,000 costs / S$200 savings = 10 months.[2]
Should I refinance my HDB loan?
Yes if savings exceed costs post-lock-in, per HDB rules. Use our calculator.
What are current best refinancing rates 2026?
3M SORA +0.7% from UOB/DBS. Compare on Homejourney.[1][4]
How much cash rebate for refinancing?
S$2,000-S$2,800 for S$450k+ loans, covering fees.[1][4]
Is refinancing worth it if rate drop is small?
If break-even <2 years and rebates high, yes. Always calculate first.
Can I refinance during lock-in?
Possible but penalties apply (1.5%). Wait if feasible.[5]
Disclaimer: This is educational; consult professionals. Rates as of 2026; Homejourney verifies for safety. Next: Compare rates at bank-rates and journey confidently with Homejourney.
