Lock-in Period Mortgage in Singapore: Homejourney’s Definitive 2026 Guide

If you stretch to a 30‑year tenure for an HDB resale flat in Jurong West, versus 25 years, the monthly instalment falls but your total interest paid grows. A longer tenure also means you might go through multiple lock-in cycles (refinancing every 2–3 years) if you actively manage rates.

TDSR, MSR and what they mean for your lock-in choice

While MAS’ Total Debt Servicing Ratio (TDSR) and HDB’s Mortgage Servicing Ratio (MSR) caps do not directly govern lock-in terms, they shape how much room you have for higher instalments if rates rise after your lock-in.[7]

• TDSR caps your total monthly debt obligations as a share of gross income (currently 55%).
• MSR caps housing loan repayments for HDB and EC buyers at 30% of gross income.

Practical implication: If your TDSR and MSR ratios are already tight, you may prefer a slightly longer fixed-rate lock-in for stability, accepting less flexibility to refinance mid‑way.

CPF usage, HDB rules, and lock-in

CPF OA savings and HDB’s rules on minimum occupation period (MOP) indirectly influence lock-in choices:

• If you buy a BTO in Punggol, you must fulfil a 5‑year MOP before selling; this makes a 3‑year lock-in more comfortable because you know sale is off the table anyway during that period.
• For older HDB flats (over 40 years), CPF usage conditions tighten, which can affect your exit options; consider shorter lock-ins if you may sell before significant lease decay.

5. Real Singapore examples: when lock-ins help and when they hurt

Here are simplified but realistic scenarios based on common cases we see among Singapore borrowers (numbers rounded for clarity; not financial advice).

Example 1: Young couple buying a 4-room HDB in Sengkang

Profile: Combined income S$9,000; buying a resale flat at S$600,000; taking a S$450,000 bank loan over 25 years.

They choose a 2‑year fixed rate at 1.6% with a 2‑year lock-in. Monthly instalment is roughly S$1,820. As first-time buyers with a 5‑year plan to stay, the lock-in helps because:

• Their income is stable (teachers and civil servants).
• They appreciate certainty because they are planning for a baby and childcare costs.
• They are not planning to sell or upgrade within 2 years, so the flexibility cost is low.

If rates fall slightly during their lock-in, they still likely save more from the low fixed rate than they lose from not refinancing immediately.

Example 2: Investor buying a 1-bedroom condo in Geylang for rental

Profile: Single, income S$14,000; buying a S$900,000 unit, S$675,000 loan over 25 years. He may sell within 3 years depending on rental yields.

He takes a floating SORA package with a 2‑year lock-in and a waiver of early repayment penalty on sale during lock-in. This structure is ideal because:

• If he sells in year 2, there is no penalty (waiver on sale).
• If he decides to hold long-term and rates rise after 2 years, he can refinance without penalty once the lock-in ends.
• He accepts some rate volatility in exchange for the flexibility to exit.

Example 3: Upgrader mis‑timing a sale during lock-in

Consider a family in Choa Chu Kang that refinanced in 2023 at 3.0% fixed for 3 years with a 3‑year lock-in, loan size S$700,000. In 2025, rates have dropped sharply to ~1.5–1.8% for new packages.[1]

They want to sell and buy a bigger condo near an MRT in Queenstown. However:

• They are still under lock-in (1 year left).
• The early repayment penalty is 1.5% of S$680,000 (approx. outstanding), which is about S$10,200.

Now they must weigh the higher interest they’ll continue to pay if they wait, against the penalty if they sell now. In some cases, the penalty can wipe out much of the savings from moving earlier.

6. Penalty free refinance strategies and timing your lock-in period end

To achieve a penalty free refinance, you typically need to:

1. Wait until your lock-in period end date; and
2. Serve the required redemption notice (often 2–3 months) to your existing bank.[3][6]

When should you start scouting new packages?

Most banks and mortgage advisers recommend starting your review about 3 months before lock-in end:[3][6]

• It can take 4–8 weeks to compare offers, submit applications, and complete legal work.
• Starting early gives you time to negotiate legal subsidies or cash rebates with the new bank.

OCBC, for example, allows repricing applications around three months before lock-in expiry.[6]

Checklist for a smooth, penalty-free refinance

• Step 1 – Check your lock-in and notice dates
  Look at your Letter of Offer or call your bank to confirm both your lock-in end date and required notice period.
• Step 2 – Use Homejourney’s bank rates page
  Go to Bank Rates to compare live rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and others.
• Step 3 – Calculate your savings
  Use Homejourney’s mortgage calculator at to estimate monthly instalments under different rate scenarios.
• Step 4 – Prepare documents via Singpass/MyInfo
  When you apply through Homejourney, your income and CPF data can be pre‑filled via Singpass/MyInfo, reducing errors and speeding approval.
• Step 5 – Submit one multi-bank application
  Apply once via Bank Rates ; Homejourney Mortgage Brokers will match your profile to multiple banks and help you compare offers transparently.

7. Early repayment penalty calculation: step‑by‑step

Most banks calculate the early repayment penalty for full redemption during lock-in as:

Penalty = Penalty rate × Outstanding loan amount being redeemed

Worked example

Assume:

• Outstanding loan: S$600,000
• Penalty rate: 1.5% (typical in Singapore)[3]
• Action: You sell your property and redeem the loan in full during lock-in.

Penalty = 1.5% × 600,000 = 0.015 × 600,000 = S$9,000.

Some packages use a tiered structure (higher penalty in year 1, lower in year 2), but 1.5% flat is common across many banks’ offerings.[3]

Partial prepayment and penalties

Many banks let you make partial prepayments during lock-in without penalty, but subject to conditions:[4]

• First prepayment per year during lock-in may be penalty-free.
• Prepayment amount may be capped at, say, 20% of the original loan amount per year.[4]
• Additional or larger prepayments may attract the standard penalty.

Table: Penalty vs. no penalty scenarios

8. Refinancing vs repricing during and after lock-in

When thinking about what happens after your lock-in, you usually have two options:

• Repricing – Switching to another package within the same bank.
• Refinancing – Moving your loan to a different bank.

Repricing within the same bank

Repricing often comes with lower or no legal fees, but your rate options may be less competitive than switching banks. Some banks let you apply to reprice about 3 months before your lock-in ends.[6]

Repricing is suitable if:

• You prefer convenience and a simpler process.
• You are happy with the bank’s service and only need a mild rate improvement.
• You want to avoid re-assessment that could be stricter under current TDSR rules.

Refinancing to another bank

Refinancing can yield bigger savings, especially if another bank offers a significantly lower promotional rate or better features (e.g. sale waiver, partial prepayment flexibility). However, you must consider:

• Legal fees and valuation costs (often partly subsidised by the new bank).
• Time required to process the new loan (4–8 weeks).
• Whether you are still under lock-in (to avoid penalties).

Homejourney simplifies refinancing by:

• Showing you up-to-date rates across banks on Bank Rates .
• Letting you run scenarios with our mortgage calculator at .
• Coordinating your multi-bank application and advising on timing so you exit your old loan exactly when lock-in ends.

For more on interest rate comparisons and refinancing timing, see and Home Loan Interest Rates Singapore 2026: Apply via Homejourney .

9. HDB loan vs bank loan: how lock-in risk differs

HDB concessionary loans and bank loans behave quite differently when it comes to lock-in and flexibility.

HDB concessionary loan

HDB loans:

• Charge a stable 2.6% rate (CPF OA rate + 0.1%).[1][2]
• Do not typically have a fixed lock-in period with early redemption penalties.
• Allow you to refinance to a bank loan later if it makes sense (although you cannot switch back to an HDB loan once you move to a bank loan).[1]

This makes HDB loans attractive for buyers who value maximum flexibility and are risk‑averse about rate volatility.

Bank loans for HDB and private property

Bank loans usually offer lower headline rates than HDB loans in the current environment (fixed packages around 1.4–1.8% recently), but come with lock-in periods and rate volatility.[1][2]

Choosing between HDB and bank loans involves weighing:

• Lower initial rates (bank) vs stability and flexibility (HDB).
• Your capacity to handle future rate hikes after the lock-in period.
• Whether you may refinance or sell in the near term; bank lock-ins can constrain this.

10. Advanced planning tips for investors and upgraders

For investors and upgraders, lock-in periods are not just about interest rates; they are part of your broader property strategy.

Align lock-in with your property timeline

• If you plan to sell within 2–3 years – Prefer floating packages with a sale waiver during lock-in, or 2‑year lock-ins instead of 3–5 years.[3]
• If you are buying a long‑term home (e.g. family condo near a child’s primary school) – A 2–3 year fixed lock-in can smooth out budget planning during your child’s early school years.

Consider ABSD, BSD and other taxes in your calculations

Additional Buyer’s Stamp Duty (ABSD) and Buyer’s Stamp Duty (BSD) are one-off taxes that can reduce your ability to absorb penalties or higher rates later.

If you are buying a second property (e.g. an investment unit in Pasir Ris near the MRT), ABSD outlay is large, so you may prefer shorter lock-ins to keep exit options open if yields disappoint.

Don’t forget operating and maintenance costs

Investors often focus heavily on interest rates and lock-ins, but unit maintenance also affects your net yield. After you complete your purchase via Property Search , remember to budget for ongoing costs like air‑conditioning maintenance, which you can manage conveniently through Homejourney’s trusted service partners at Aircon Services .

11. How Homejourney keeps your mortgage journey safe and transparent

Homejourney is built around user safety, verification, and transparency – critical when you are locking yourself into a multi‑year mortgage commitment.

1. Verified, transparent rate comparisons

On Bank Rates , you can:

• View up-to-date packages from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB and others in one place.
• See each package’s lock-in period, penalty terms, and whether sale or partial prepayment waivers apply (where available).
• Track live SORA updates and how they impact floating packages in real time.

2. Eligibility and affordability calculators

Before committing to a lock-in, use the Homejourney calculators at to:

• Estimate how much you can borrow under current TDSR/MSR limits.
• Model monthly instalments at different interest rates (e.g. 1.4%, 1.8%, 2.5%).
• Stress-test your budget for post lock-in rate increases.

3. Safe, single multi-bank application

Instead of submitting your documents repeatedly to each bank, you can:

• Apply once via Bank Rates .
• Use Singpass/MyInfo to auto-fill income, employment, and CPF details securely.
• Let Homejourney Mortgage Brokers coordinate offers from multiple partner banks and explain differences in lock-in, penalty, and rate structures.

4. Integrated property and mortgage planning

When you shortlist properties via Property Search or Projects Directory , Homejourney helps you align your loan choice and lock-in with your property type and holding period.

For example:

• If you are eyeing a new launch with a 3-year construction window, you may need a different lock-in approach compared to a completed resale condo.
• If you are buying an HDB near your child’s future primary school, our team can help align lock-in length with your anticipated schooling years and upgrading plans.

References

1. Singapore Property Market Analysis 2 (2026)
2. Singapore Property Market Analysis 3 (2026)
3. Singapore Property Market Analysis 1 (2026)
4. Singapore Property Market Analysis 4 (2026)
5. Singapore Property Market Analysis 8 (2026)
6. Singapore Property Market Analysis 6 (2026)
7. Singapore Property Market Analysis 7 (2026)