Lock-in Period FAQs for Singapore Mortgages – Homejourney Guide

The lock-in period

This focused guide on Lock-in Period Explained Complete Mortgage: Frequently Asked Questions sits under Homejourney’s main pillar on Singapore home loans and interest rates Homejourney Guide: Home Loan Interest Rates Singapore 2026 . It gives you clear, tactical answers so you can plan your purchase or refinancing safely, avoid unexpected early repayment penalties, and use Homejourney’s tools to compare and apply for the right package.

What is a lock-in period in a Singapore home loan?

In Singapore, a mortgage lock-in period is the contractual period during which your bank may impose a penalty—often around 1.5% of your outstanding loan amount—if you fully redeem, refinance to another bank, or sometimes sell your property before that period is over. Fixed-rate packages usually come with a 2–5 year lock-in, where the interest rate remains unchanged throughout this period.[1][2]

For example, many fixed-rate loans from major banks like DBS, OCBC and UOB offer 2- or 3-year lock-in periods with attractive promotional rates. Channel NewsAsia notes that fixed packages with lock-ins of two to five years have been moving broadly in tandem with floating SORA-based loans in recent years.[1] Floating-rate packages can also have lock-in clauses, especially when they come with promotional benefits like legal subsidies or cash rebates.

HDB concessionary loans from HDB itself typically do not have a formal lock-in period, but once you switch from HDB to a bank loan, you cannot switch back to an HDB loan later, so you must still plan carefully.

Why does the lock-in period matter for Singapore buyers?

Understanding your loan lock-in is critical because it affects three big decisions: when you can sell, when you can refinance, and when you can make large repayments without penalty. In neighbourhoods like Punggol, Sengkang or Tengah, where many younger buyers upgrade to condos after their Minimum Occupation Period (MOP), misaligning your lock-in period with your upgrade timeline can cost you tens of thousands in penalties.

Mortgage advisers in Singapore generally recommend choosing a lock-in that matches your realistic plans: for instance, if you buy a BTO in Bidadari and expect to upgrade after the 5-year MOP, a 2–3 year lock-in (especially if you intend to refinance once) is often more flexible than a 5-year lock-in that stretches right into your upgrade window.[1] However, if you are buying a long-term home in mature estates like Bishan, Clementi or Marine Parade and do not plan to move, a longer lock-in with better rates can make sense.

Homejourney helps you see both the interest rates and lock-in terms clearly on our bank rates page Bank Rates , so you can compare beyond just the headline rate.

How long is the typical lock-in period in Singapore?

Most Singapore bank home loans come with lock-in periods of 2 to 5 years, depending on the package.[1][2] Fixed-rate mortgages here commonly fix the rate only for the initial lock-in period—often 2 or 3 years—after which they revert to a floating rate if you do nothing.[2]

Some examples you will see when you use Homejourney’s comparison tools:

2-year lock-in SORA packages (e.g., 3M compounded SORA + spread) from banks like UOB.[3]
3-year fixed-rate packages with the same rate for all three years and a 3-year lock-in.
4- or 5-year lock-in packages occasionally available when banks are especially aggressive.

There are also “no lock-in” or shorter lock-in packages, usually for floating rates, but they tend to have slightly higher spreads or fewer subsidies.

Understanding rates during your lock-in period

For a fixed-rate package, your interest rate stays constant throughout the lock-in period, giving you predictable instalments. As CNA reported, fixed rates in Singapore have recently fallen sharply, with some packages around 1.4–1.8% after previously being over 3%.[1] For many borrowers, locking in a low fixed rate for 2–3 years can make budgeting much easier.

For floating-rate packages—usually pegged to 1M or 3M SORA plus a spread—the rate can change every month or every three months based on market movements.[2] Some of these come with a lock-in period, particularly where banks provide legal subsidies or cash rebates to attract borrowers.[1]

The chart below shows recent interest rate trends in Singapore:

As you review packages on Homejourney’s bank rates page Bank Rates , combine this chart insight with your own risk appetite: if you are more risk-averse, a fixed rate during the lock-in may be preferable, while those comfortable with volatility may accept a floating rate even within a lock-in for potential savings.

Early repayment penalty: how is it calculated?

The early repayment penalty—sometimes called an early redemption fee—is typically a percentage of your outstanding loan amount if you fully repay or refinance during your lock-in. Many Singapore bank letters of offer specify a penalty of around 1.5% of the amount redeemed, though it can range from 1% to 1.75% depending on the bank and package.

Example: If you have S$800,000 outstanding on your condo in Tampines and your penalty is 1.5%, redeeming or refinancing during the lock-in can cost about S$12,000 in penalty alone, excluding legal and valuation fees.

Some banks allow partial prepayments during the lock-in either without penalty or with a smaller fee. For example, UOB has offered packages where the first prepayment per year within the lock-in—capped at a percentage of the original loan—attracts no prepayment penalty.[3] Always read these clauses carefully or use Homejourney’s mortgage brokers to help you interpret the fine print.

Penalty-free refinance: when can you switch?

You typically enjoy a penalty free refinance once your loan lock-in period ends. Some banks, like OCBC, even allow you to start the repricing or refinancing process about three months before the lock-in period end, so that your new package kicks in immediately after the lock-in finishes and you avoid overlap.[6]

A safe, practical approach for homeowners in areas like Jurong West or Yishun, where there are many resale flats reaching or past MOP, is:

Check your lock-in end date at least 6 months in advance.
Use Homejourney’s bank rates page Bank Rates to compare new packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank, Citibank and others.
Run your numbers using our mortgage calculator to see your potential monthly savings.
Apply to multiple banks at once via Homejourney’s multi-bank application Bank Rates , using Singpass/MyInfo to pre-fill your details.
Time your acceptance so that your new loan disburses after your lock-in expires to avoid penalties.

This structured approach reduces surprises and fits Homejourney’s mission to create a safe, transparent environment for every borrower.

Lock-in period vs your property plans

Before committing to any lock-in period, align it with your likely plans over the next 3–7 years. In Singapore, this means considering:

HDB MOP and upgrading plans: If you are in a 4-room HDB in Sengkang and plan to upgrade to an OCR condo after your 5-year MOP, you generally do not want a 5-year lock-in that starts right before MOP ends. A shorter lock-in (2–3 years) plus one refinancing cycle can be more flexible.
Family planning: If you expect a bigger family and need more space—common in estates like Punggol or Choa Chu Kang—build in flexibility to sell or upgrade without heavy penalties.
Job stability: In sectors with more income uncertainty (e.g., tech, start-ups), a shorter lock-in can give you more options if your circumstances change and you need to restructure or downsize.
Investment property: For a rental unit near MRT nodes like Queenstown or Kallang, you might be more comfortable with a slightly longer lock-in in exchange for a lower rate, since investment horizons are often longer.

Homejourney’s eligibility calculator shows how different tenures and rates—within and beyond your lock-in—affect your monthly payments and Total Debt Servicing Ratio (TDSR), so you can commit safely.

Regulatory context: MAS, HDB and loan rules

Lock-in clauses are contractual between you and the bank, but they sit within a wider regulatory framework set by the Monetary Authority of Singapore (MAS) and HDB. MAS caps maximum loan tenure at 30 years for HDB flats and 35 years for non-HDB properties, which indirectly shapes how banks structure lock-in periods and tenures.[8]

Key rules that interact with your lock-in decision include:

Loan-to-Value (LTV) limits: Affect how much you can borrow and thus the size of your instalments.
Mortgage Servicing Ratio (MSR) for HDB and ECs and TDSR for all properties: Limit the share of your income that can go to housing repayments.
Stamp duties (BSD and ABSD): Important if you plan to buy a second property before selling the first; lock-ins can complicate this.

These rules are updated periodically, so always cross-check with official MAS and HDB resources, and use Homejourney’s up-to-date calculators and guides like Homejourney: Home Loan Interest Rates Singapore FAQs 2026 for the latest thresholds.

HDB loan vs bank loan: how does lock-in differ?

An HDB concessionary loan has a stable interest rate (currently 2.6% per annum, pegged at 0.1% above the CPF OA rate) and no traditional lock-in period, but you lose the option to return once you switch to a bank loan. Bank loans can be significantly cheaper in the current environment, with fixed and SORA-pegged packages below HDB’s 2.6% level in many cases.[1][2]

Bank loans, however, almost always have some form of lock-in, especially for promotional packages. When deciding whether to refinance from HDB to a bank loan, many HDB owners in towns like Yishun or Ang Mo Kio run the numbers on Homejourney’s calculator to check their potential interest savings versus the risks of future rate increases and lock-in restrictions.

If you are uncertain about the trade-offs, consider speaking to Homejourney’s mortgage brokers via the bank-rates page Bank Rates —they can walk you through safe scenarios tailored to your income, CPF usage, and long-term plans.

Insider tips: how locals manage lock-ins safely

From years of watching how Singapore buyers behave on the ground—from HDB upgraders in Punggol to investors around the CBD fringe—some practical patterns stand out:

Match lock-in to key milestones: Many BTO owners aligning their lock-in with the end of MOP, or slightly earlier, so they can refinance once then stay flexible for upgrading.
Start refinancing homework early: Regulars in mature estates like Toa Payoh often start exploring Homejourney’s bank rates Bank Rates 6–9 months before lock-in expiry, to avoid last-minute decisions.
Use partial prepayments strategically: Where packages allow penalty-free partial prepayments within the lock-in (up to a cap), some owners channel year-end bonuses or matured fixed deposits to shrink the outstanding loan while still keeping flexibility.
Track SORA and promo cycles: Seasoned investors keep an eye on SORA trends and promotional windows—often early in the year when banks compete for market share[1]—using Homejourney’s real-time SORA tracking and interest rate insights Home Loan Interest Rates Singapore 2026: Apply via Homejourney .

These simple habits, combined with transparent comparison on Homejourney and careful reading of lock-in clauses, significantly reduce the risk of unpleasant surprises later.

How Homejourney keeps lock-in decisions safe and transparent

Homejourney is built around user safety and trust. For lock-in periods, that means:

Clear comparison: Our bank rates page Bank Rates shows lock-in duration, rate type (fixed or SORA), and key conditions for packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong Bank and Citibank in one place.
Eligibility and affordability checks: Use our calculator to ensure your monthly instalments—both during and after your lock-in—fit within MAS TDSR/MSR guidelines.
Multi-bank application with Singpass/MyInfo: Submit one secure application via Homejourney Bank Rates , auto-fill your details with Singpass, and receive offers from multiple banks without repeatedly sending sensitive documents.
Guided refinancing: Our step-by-step refinancing workflow and mortgage brokers help you time your switch around your lock-in period end to minimise penalties and fees.
Integrated journey: Once your financing is sorted, search for properties within your safe budget using Homejourney’s property search Property Search , and later explore maintenance services such as aircon servicing Aircon Services to protect your home’s condition and value.