Mortgage Refinancing Singapore 2026: Homejourney Guide
Mortgage refinancing Singapore can save homeowners thousands in 2026 by securing lower rates amid shifting SORA trends. This definitive Homejourney guide covers everything from repricing vs refinancing to step-by-step processes, helping you make safe, informed decisions in a trusted environment.
As interest rates fluctuate, understanding when to refinance is crucial for HDB and private property owners. Homejourney prioritizes your safety with verified data, real-time rate comparisons, and multi-bank applications via Singpass. Start by exploring rates at Homejourney bank rates.
Table of Contents
- Executive Summary
- 1. Refinancing Fundamentals
- Repricing vs Refinancing
- When to Refinance
- 2. Financial Analysis
- Understanding Interest Rates & SORA
- Break-Even Calculations
- Hidden Costs Breakdown
- 3. Timing Considerations
- 4. Step-by-Step Refinancing Guide
- 5. Money-Saving Strategies
- How Homejourney Simplifies Refinancing
- FAQ
- Next Steps with Homejourney
Executive Summary
In 2026, mortgage refinancing Singapore offers opportunities as SORA rates stabilize post-global adjustments. Homeowners can reduce payments by 0.5-1% via refinancing, potentially saving S$20,000+ over loan tenure[1][2].
This pillar guide provides exhaustive coverage: compare repricing vs refinancing, calculate savings, navigate HDB/private rules, and leverage Homejourney's tools for multi-bank offers. We verify all data for trust, drawing from MAS, HDB, and bank promotions.
Key insight: Refinance if savings exceed costs within 2-3 years. Use Homejourney's calculator at Homejourney mortgage calculator to personalize.
1. Refinancing Fundamentals
Refinancing means switching your existing home loan to a new lender for better terms like lower rates or cash-out. Unlike repricing, it involves full loan termination and new approval[1][2][3].
For HDB flats, you can't refinance bank loans to HDB but can go HDB to bank. Private properties offer more flexibility across DBS, OCBC, UOB[2]. Homejourney compares all major banks securely.
What is Mortgage Refinancing?
Refinancing replaces your current loan with a new one, often at lower SORA-based rates. Example: A S$800,000 loan at 4% refinanced to 2.5% cuts monthly payments from S$3,817 to S$3,165, saving S$652/month[1].
Benefits include shorter tenure, equity release for renovations, or flexibility. Risks: Fees and TDSR re-assessment under MAS rules.
Repricing vs Refinancing: Key Differences
Understand repricing vs refinancing to choose wisely. See our detailed comparison in Refinancing vs Repricing guide.
| Aspect | Repricing | Refinancing |
|---|---|---|
| Lender Change | Same bank | New bank |
| Costs | Low (admin fees) | Higher (legal, valuation S$2-5k) |
| Flexibility | Limited | High (new packages) |
| Best For | Minor rate drops | Major savings/cash-out |
Repricing suits small adjustments; refinancing unlocks promotions like UOB's S$2,500 cash for S$1M+ loans[6]. Compare on Homejourney[3].
When to Refinance Your Home Loan
Refinance if new rate saves >0.5% after costs, lock-in expired, or equity needed. Check When to Refinance guide for details.
- Lock-in ends (2-3 years typical)
- SORA drops (monitor via Homejourney)
- Income rises, TDSR allows more borrowing
- Shorten tenure post-kids' education
2. Financial Analysis
Understanding Interest Rates & SORA in 2026
SORA (Singapore Overnight Rate Average) is the key benchmark, replacing SOR/SIBOR. Most loans are 3M SORA + 0.6-1.2% margin. Fixed rates offer stability but higher initial costs[2][9].
The chart below shows recent interest rate trends in Singapore:
As seen, 3M SORA hovered at 2.8-3.2% in late 2025, projected stable in 2026 per MAS outlook. Track live on Homejourney for timing[1].
Break-Even Calculations: Is Refinancing Worth It?
Break-even = Total Costs / Monthly Savings. Example: S$4,000 costs, S$500 savings = 8 months. Use our calculator guide or Homejourney tool.
| Scenario | Current Rate | New Rate | Monthly Saving | Break-Even (Costs S$4k) |
|---|---|---|---|---|
| S$1M Loan, 25yrs | 3.5% | 2.8% | S$550 | 7 months |
| HDB S$500k, 20yrs | 3.0% | 2.2% | S$280 | 14 months |
Original insight: Factor clawback (3 months interest if early exit). Aim for break-even <24 months[1][3].
Hidden Costs Breakdown
Total ~S$2,000-6,000. Banks subsidize often. Details in Hidden Costs guide.
- Legal fees: S$1,500-2,500 (subsidized)
- Valuation: S$500-1,500
- Application: S$200-500
- Clawback: 1.5-3 months interest
- Disbursement: S$500-1,000
3. Timing Considerations
Start 3-6 months before lock-in ends. 2026 outlook: Stable SORA favors refinancing if current rate >3.5%. Monitor via Homejourney real-time tracker[1].
Insider tip: Refinance post-CPF top-up season (Q1) when liquidity high. Avoid year-end for faster processing.
4. Step-by-Step Refinancing Guide
Follow this 8-step checklist adapted for 2026[1]. Homejourney streamlines with one application.
- Assess current loan: Check lock-in, balance via bank statement.
- Compare rates: Use Homejourney for DBS/OCBC/UOB etc.[9]
- Calculate savings: Homejourney calculator.
- Gather docs: IC, income slips, property title, CPF statements.
- Apply multi-bank: Singpass via Homejourney.
- Valuation & approval: 2-4 weeks.
- Legal completion: 4-6 weeks total process.
- Disburse & enjoy savings.
Timeline: 1-2 months. HDB adds CPF refund wait.
5. Money-Saving Strategies
- Negotiate: Pit banks against each other via Homejourney multi-offers.
- Cash rebates: UOB S$2k+, OCBC promotions[6][8].
- Shorten tenure: Save S$50k+ interest.
- Bundle insurance for rebates.
Pro tip: Time for Q4 promotions when banks hit targets.
How Homejourney Simplifies Refinancing
Homejourney builds trust with verified rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public, Hong Leong, Citibank. Submit one app, get multiple offers - no branch visits.
- Compare & calculate: Bank rates
- Singpass auto-fill: Instant verification.
- Live SORA: Perfect timing.
- Mortgage brokers: Personalized advice.
Search budget-fit properties at Homejourney search. Post-refi, maintain with aircon services.
FAQ: Mortgage Refinancing Singapore 2026
Q: What is the difference between refinancing and repricing?
A: Repricing stays with same bank (low cost); refinancing switches banks for better deals[1][3].
Q: How much does refinancing cost in Singapore?
A: S$2k-6k, often subsidized. Calculate on Homejourney[1].
Q: Can I refinance my HDB loan?
A: Yes, to banks but not vice versa. Check eligibility[2].
Q: Best banks for refinancing 2026?
A: Compare DBS/OCBC/UOB on Homejourney for lowest SORA + margin[9]. See rates comparison.
Q: When is the best time to refinance?
A: Post-lock-in, when SORA falls 0.5%+. Track on Homejourney[1].
Q: Does refinancing affect my credit?
A: Minor inquiry impact; Homejourney guides safe applications.
Disclaimer: This is educational; consult professionals. Rates change; verify on Homejourney.
Next Steps with Homejourney
Ready for refinance home loan? Visit Homejourney bank-rates to compare, calculate, and apply safely. Our platform ensures transparency, verifies data, and prioritizes your security throughout the journey.
Homejourney: Your trusted partner for confident property decisions.
