Lock-in Period & Bank Rate Comparison: Homejourney’s 2026 Mortgage Playbook

For Singapore home loans, the lock-in period is the fixed time (usually 1–5 years) when you must keep your mortgage with the same bank or pay an early repayment penalty—typically 1–1.5% of the outstanding loan—if you fully redeem, refinance, or sell your property. Choosing the right lock-in period is as important as the interest rate itself because it determines when you can enjoy penalty free refinance and switch to better deals when rates change.

This cluster guide, “Lock-in Period Explained Complete Mortgage: Bank Rate Comparison Guide”, supports Homejourney’s main interest rate pillar content Homejourney Guide: Home Loan Interest Rates Singapore 2026 by zooming in on lock-in rules, bank rate structures, and real-world refinancing decisions in Singapore.

What is a lock-in period in a Singapore mortgage?

In Singapore, a lock-in period mortgage is a home loan where the bank contractually requires you to stay with them for a fixed number of years—commonly 2 or 3 years for bank packages, sometimes up to 5 years for certain fixed-rate deals.[2][4] During this time, if you fully repay, refinance to another bank, or sell your property, the bank usually charges an early repayment penalty based on a percentage of your outstanding loan (for example, 1.5%).

From my own experience advising HDB upgraders in estates like Punggol, Sengkang and Tampines, this lock-in period often determines when families can comfortably move from their first flat to a condo without being hit by hefty penalties. Many homeowners time their sale or upgrade to coincide with the lock-in period end so they can restructure their loan at lower cost.

How lock-in periods work with different rate types

Most Singapore bank loans fall into three broad categories, each with lock-in rules:

Fixed-rate packages: Interest rate is fixed for the lock-in period (typically 2–5 years), then converts to a floating or board rate afterwards.[2][1]
SORA-pegged floating packages: Rate is expressed as 1M or 3M compounded SORA + a spread (for example, 3M SORA + 1.00% p.a.), often with a 2–3 year lock-in.[1][2][6]
Board rate / internal rate packages: Pegged to the bank’s internal rate (e.g. “BR + spread”), also typically with 2–3 year lock-in.

According to recent coverage of Singapore home loans, many fixed-rate packages currently come with 2–5 year lock-in periods, while floating SORA packages often lock you in for about 2 years.[1][2][6] On the ground, I see many buyers choosing 2-year lock-ins as a “middle ground” between lower rates today and flexibility to refinance when the rate cycle changes.

Current interest rate trends and why lock-in matters (2025–2026)

As of late 2025, Singapore mortgage rates have eased to multi-year lows after peaking in 2022–2023.[1][2][3] Fixed-rate packages that were around 3–3.5% in early 2025 have fallen to around 1.4–1.8% for some deals, while 3M SORA is hovering around the low 1% range.[1][3] This has triggered a wave of refinancing, particularly among HDB flat owners whose earlier loans were locked in at 3–4%.[3]

In practice, I’ve seen HDB owners in estates like Jurong West and Woodlands cut their monthly instalments by S$300–S$600 simply by refinancing right after the lock-in period ended, moving from older 3%+ packages to fixed rates near 1.6–1.8% or competitive SORA packages.[1][3]

The chart below shows recent interest rate trends in Singapore:

Understanding this trend is critical: if you are locked in at a higher rate while market rates fall sharply, you may have to wait until your lock-in period end—or accept an early repayment penalty—to capture the savings.

Typical lock-in periods & penalties across major banks

Exact details differ by bank and package, but based on current product structures from major Singapore lenders and public information:[1][2][3][6]

DBS Bank: 2–3 year lock-in is common for both fixed and SORA-pegged packages; some HDB-focused packages have partial repayment flexibility.
OCBC Bank: Allows repricing about 3 months before lock-in period ends, letting you transition smoothly to a new package without penalty if you stay with OCBC.[5]
UOB: Sample private home loan packages show a 2-year lock-in for 3M SORA + spread products.[6]
HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, Citibank: Typically offer 2–3 year lock-ins for most bank-funded packages; some promotional fixed-rate deals may run longer.

Early repayment penalties generally apply when you:

Fully repay the loan (for example, from a property sale) during the lock-in.
Refinance to another bank during the lock-in.
Partially prepay beyond the penalty-free allowance (if any) specified in your Letter of Offer.

Penalty amounts are usually stated as a percentage of the outstanding loan (often around 1–1.5%), but always check your loan Letter of Offer and bank T&Cs for the exact figure. MAS and banks emphasise that penalty and lock-in terms must be clearly disclosed to borrowers.[2]

When does a lock-in period end, and how to plan for penalty free refinance?

For most mortgages, the lock-in period end date is explicitly stated in your Letter of Offer and on your yearly bank statements. OCBC, for example, states that borrowers can request repricing about three months before the lock-in period ends, so any new package takes effect immediately after the lock-in without penalty.[5]

To plan a penalty free refinance in Singapore, you should:

Check your lock-in end date
Look at your Letter of Offer or contact your bank to confirm the exact date. Many borrowers I’ve met in places like Clementi and Yishun underestimate this and miss months of potential savings.
Start comparison 3–6 months before lock-in ends
Legal work and valuation for refinancing can take 6–8 weeks. Starting early lets you lock in a good rate before your current package reverts to a higher board rate.
Use Homejourney’s bank rates page
Compare fixed, SORA and board rate packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and more in one view via Bank Rates . You can also estimate savings with the calculator at Mortgage Rates or .
Factor in costs
Even penalty-free refinancing has legal and valuation costs (often a few thousand dollars), though many banks offer subsidies. Use Homejourney’s eligibility and affordability calculators to see if the monthly savings justify the switch.
Consider repricing with your current bank
If you prefer less hassle, ask your existing bank about repricing to a new package after lock-in. Homejourney’s mortgage brokers can help you compare repricing vs refinancing via Bank Rates .

Lock-in period vs early repayment penalty: practical examples

Here are two simplified, realistic examples based on current market conditions reported by local media.[1][3]

Example 1: HDB upgrader in Punggol

Suppose you bought a 4-room resale HDB in Punggol for S$650,000 in 2022 with a S$450,000 bank loan at a 3-year fixed rate of 3.0%, 3-year lock-in, 1.5% early repayment penalty. In 2025, rates have dropped and 2-year fixed packages are around 1.6%.[1]

In mid-2025, you want to refinance or sell to upgrade to an EC in Sengkang. Your options:

If you refinance before the lock-in ends, a 1.5% penalty on an outstanding loan of S$420,000 is S$6,300—often more than 1–2 years of interest savings.
If you wait until lock-in period end in 2026, you can refinance or sell with no penalty, capturing the new lower rates or upgrading with less cost friction.

Using Homejourney’s calculator at , you can estimate whether taking the penalty makes sense. In most cases I’ve seen, for HDB owners with 1–2 years left on a high-rate lock-in, waiting until lock-in period end is cheaper unless rates have fallen dramatically.

Example 2: Investor with condo in Tanjong Pagar

Imagine a landlord who bought a one-bedroom unit near Tanjong Pagar MRT for S$1.3 million with a S$900,000 loan on a 2-year SORA package. The current rate is 3M SORA + 1.0%, with 2-year lock-in and 1% penalty.[1][6]

Now, rates have fallen and a competitor bank offers 3M SORA + 0.8% with similar lock-in terms. The investor is considering refinancing one year into the lock-in:

Penalty: 1% of S$880,000 ≈ S$8,800.
Annual interest savings: roughly 0.2% x S$880,000 ≈ S$1,760 per year (simplified).

In this scenario, the penalty far outweighs the savings over the remaining lock-in period. A disciplined landlord using Homejourney’s tools would usually wait until lock-in completion, then compare across all banks via Bank Rates to find a more meaningful rate improvement.

Comparing bank rates and lock-in terms: DBS, OCBC, UOB & others

Instead of fixating only on headline rates, you should compare:

Length of lock-in (2 vs 3 vs 5 years)
Type of rate (fixed, SORA, board)
Penalty structure (percentage, partial prepayment allowance)
Free conversion / repricing features
Subsidies (legal subsidies, valuation fee waivers, cash rebates)

For example, recent market data points and bank disclosures suggest:

DBS Bank: Competitive 2–3 year fixed rates alongside 3M SORA packages; sometimes offers HDB-focused home loans with friendlier partial prepayment terms.[1][3]
OCBC Bank: Emphasises smooth repricing within the bank; borrowers can reprice roughly three months before lock-in ends, which reduces the risk of suddenly jumping to a high board rate.[5]
UOB: Example package: 3M compounded SORA + 1.00% p.a. rate with a 2-year lock-in and minimum loan size of S$250,000.[6]
Other banks (HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, Citibank): Often run promotional rates with standard 2–3 year lock-ins; some focus on high-income borrowers or larger loan sizes.

Instead of manually checking each bank, you can use Homejourney’s bank rates comparison at Bank Rates to see live updates of fixed vs SORA vs board packages, along with lock-in periods and key terms. This reduces the risk of choosing a loan with an attractive rate but an overly restrictive lock-in.

How Homejourney makes lock-in decisions safer and more transparent

Homejourney is built around safety, transparency, and verified information for Singapore property buyers. For lock-in periods and mortgages, this means:

Bank rates comparison with full lock-in details
View lock-in duration, penalty conditions, and free conversion clauses side by side for DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and others via Bank Rates .
Mortgage eligibility calculator
Estimate how much you can borrow safely, and how different rate and lock-in combinations affect your monthly instalments at or Mortgage Rates .
Multi-bank application
Submit one application through Homejourney and let multiple banks compete for your business, instead of you negotiating bank by bank.
Singpass/MyInfo integration
Auto-fill your details securely using Singpass, reducing paperwork and minimising the risk of errors that can delay approval.
Real-time SORA tracking
Monitor 3M and 6M SORA trends directly via Homejourney to time your refinancing right and avoid locking in at the wrong part of the cycle.
Homejourney mortgage brokers
When you apply via Bank Rates , our partnered mortgage specialists help interpret lock-in clauses, penalty terms, and give tailored guidance.

For broader context on interest rates and how they interact with lock-in periods, you can deepen your understanding with these related Homejourney resources: