Mortgage Refinancing Singapore 2026: Homejourney's Definitive Guide

This is the definitive guide to mortgage refinancing Singapore in 2026, crafted by Homejourney to empower property owners with transparent, verified insights for safer financial decisions. Whether you're eyeing lower rates or better terms, discover step-by-step strategies, real calculations, and Homejourney tools to maximize savings while prioritizing trust and user safety.

At Homejourney, we verify every rate and regulation to build confidence in your journey. Start by comparing rates from DBS, OCBC, UOB, HSBC, and more at Homejourney bank rates.

1. Refinancing Fundamentals: Key Concepts Explained
2. Repricing vs Refinancing: Which Saves More?
3. When to Refinance: Timing Your Move
4. Financial Analysis: Calculate Real Savings
5. Step-by-Step Refinancing Guide
6. Hidden Costs and Fees Breakdown
7. Money-Saving Strategies for 2026
8. Key Regulations and Eligibility
9. How Homejourney Simplifies Refinancing
FAQ: Common Mortgage Refinancing Questions

1. Refinancing Fundamentals: Key Concepts Explained

Mortgage refinancing Singapore involves switching your existing home loan to a new one, often with a different lender, to secure better terms like lower interest rates or extended tenure. This differs from repricing, which stays with the same bank but changes the package. In 2026, with SORA rates stabilizing around 2.5-3%, refinancing can save homeowners S$200-500 monthly on average loans.[2][1]

SORA, or Singapore Overnight Rate Average, is the primary benchmark for floating-rate home loans in Singapore, replacing older Sibor rates. Most banks like DBS, OCBC, and UOB peg loans to 3M or 6M SORA plus a margin of 0.5-1%. Fixed-rate options, like DBS's FHR6 (Fixed Deposit Home Rate 6), offer stability but may reset higher post-lock-in.[5]

Refinancing suits those with high current rates (>3%) or equity buildup, especially if property values in areas like Punggol or Tengah have appreciated 10-15% since purchase.[3] Homejourney verifies these trends to ensure accurate advice.

Understanding SORA and Rate Types

The chart below shows recent SORA trends to help you understand how rates have moved:

As seen in the chart, 3M SORA hovered at 2.8% in early 2026, down from 2025 peaks, creating refinancing opportunities.[1] Track live rates on Homejourney's bank rates page.

2. Repricing vs Refinancing: Which Saves More?

Repricing vs refinancing is a top query for Singapore homeowners. Repricing switches packages within your current bank (e.g., from fixed to SORA at UOB), taking ~5 weeks with low fees. Refinancing moves to a new lender (e.g., DBS to OCBC), taking ~13 weeks but accessing broader options.[2]

Feature	Refinancing	Repricing
Timeline	13 weeks	5 weeks
Costs	Higher (legal, valuation; subsidies common)	Lower (admin fees)
Options	Wider (all banks)	Limited (current bank)
Savings Potential	Higher (better rates)	Moderate

Choose repricing for speed if your bank offers competitive SORA+0.6% packages. Opt for refinancing for rates below 2.8%, like HSBC's promotions. See Refinancing vs Repricing: Which is Better for You? Homejourney Guide ">Refinancing vs Repricing: Which is Better for You? Homejourney Guide for details.[2]

3. When to Refinance: Timing Your Move

The best time to refinance is 3-6 months before your 2-3 year lock-in ends, avoiding penalties of 1.5% on outstanding balance.[1][3] In 2026, with expected SORA easing to 2.5%, post-lock-in is ideal if your rate exceeds 3%.[5]

Real example: A S$800,000 HDB loan in Bedok at 3.5% post-lock-in. Refinance to OCBC SORA+0.7% (effective 3.3%) saves S$3,000 yearly. Insider tip: Start 4 months early for notice periods; banks require 3 months' payments post-lock-in.[3]

Green Light: Rates drop 0.5%+; equity >80% LTV.
Red Light: Within lock-in; low equity (<60% LTV).

Check Homejourney mortgage calculator for personalized timing.

4. Financial Analysis: Calculate Real Savings

Break-even analysis determines if refinancing pays off. Formula: (Total Costs) / (Monthly Savings) = Months to Break Even. Aim for <24 months.[2]

Example: S$1M loan, 25 years left. Current: 3.2% (S$5,300/month). New: 2.8% (S$5,000/month). Savings: S$300/month. Costs: S$5,000 (fees). Break-even: 17 months. Total savings over 10 years: S$36,000.

Use Homejourney's refinancing calculator at bank-rates#calculator. Details in How to Calculate If Refinancing is Worth It: Homejourney Guide ">How to Calculate If Refinancing is Worth It: Homejourney Guide.[2][1]

Loan Amount	Current Rate	New Rate	Monthly Saving	Break-Even (Costs S$4k)
S$800k	3.5%	2.9%	S$250	16 months
S$1.2M	3.2%	2.7%	S$380	11 months
S$1.5M	3.0%	2.6%	S$420	10 months

5. Step-by-Step Refinancing Guide

Follow this verified process for smooth refinancing:

Assess: Review current loan statements; calculate savings via Homejourney.
Compare: Rates from DBS (FHR6), UOB, HSBC on Homejourney – one platform, multiple banks.
Apply: Submit via Singpass on Homejourney; one app to all partners (OCBC, Maybank, CIMB).
Valuation/Legal: Bank arranges (~4 weeks); subsidies cover most fees.
Close: Redeem old loan; new funds in 2-3 days. Total: 10-13 weeks.[2]

Documents: NRIC, income proofs (last 3 payslips), property title, existing loan stmt. Homejourney auto-fills via Singpass for speed and security.

6. Hidden Costs and Fees Breakdown

Expect S$3,000-6,000 total. Banks subsidize 80-100% in 2026 promos.

Legal Fees: S$1,500-2,500 (subsidized).
Valuation: S$500-1,000 (free for >S$1M loans).
Clawback: Up to 100% cashback if <2 years.
Penalties: 1-1.5% if early lock-in break.

Read Hidden Refinancing Costs Singapore: Is It Worth It? Homejourney ">Hidden Refinancing Costs Singapore: Is It Worth It? Homejourney. Always factor via Homejourney calculator.[2][3]

7. Money-Saving Strategies for 2026

Negotiate: Leverage quotes from Homejourney's multi-bank system – banks compete, offering 0.1-0.2% lower margins or S$2,000+ rebates. Combine with debt consolidation for HDB owners in Yishun flats.

Shorten tenure post-refi to cut interest (e.g., 25 to 20 years saves S$50k). Track SORA on Homejourney; refinance when dips hit. For investors, cash-out refi if LTV allows (up to 75% private).[7]

8. Key Regulations and Eligibility

MAS rules: Max age+tenure 65+30=95 years (HDB 55+25). TDSR exempt for owner-occupied refi since 2024 updates.[3][9] LTV: 75% private, 80% HDB. MSR 30% for HDB.

Eligibility: Min S$450k loan (UOB); good credit. Homejourney checks via eligibility tool.[4][7] Disclaimer: This is general info; consult professionals for advice.

9. How Homejourney Simplifies Refinancing

Homejourney prioritizes your safety with verified rates and one-click multi-bank apps. Compare DBS vs Standard Chartered instantly; apply to all via Singpass. Track SORA live, calculate savings – all in a trusted platform built on user feedback.

Next: Visit https://www.homejourney.sg/bank-rates to start. Pair with property search for upgrades. See Best Bank Refinancing Rates Comparison 2026: Homejourney Guide ">Best Bank Refinancing Rates Comparison 2026.[1]