Mortgage Refinancing Singapore 2026: Homejourney Ultimate Guide
Mortgage refinancing Singapore in 2026 offers homeowners a prime opportunity to lower payments amid shifting SORA rates and competitive bank offers. This definitive Homejourney guide equips you with everything from repricing vs refinancing to break-even calculations, ensuring safe, informed decisions in a trusted environment.
Homejourney prioritizes your financial security by verifying rates from DBS, OCBC, UOB and more, while our multi-bank application simplifies the process. Whether you're an HDB upgrader or condo investor, discover when to refinance and maximize savings today.
Table of Contents
- Executive Summary
- 1. Refinancing Fundamentals
- Repricing vs Refinancing
- When to Refinance
- 2. Financial Analysis & Savings
- Refinancing Costs Breakdown
- Break-Even Calculation
- 3. Interest Rates & SORA in 2026
- SORA Trends
- Bank Rates Comparison
- 4. Timing & Lock-In Strategies
- 5. Step-by-Step Refinancing Guide
- 6. Negotiation & Money-Saving Tips
- How Homejourney Makes Refinancing Safe & Simple
- FAQ: Mortgage Refinancing Singapore
- Next Steps with Homejourney
Executive Summary
In 2026, refinance home loan options are more accessible post-TDSR adjustments for owner-occupied properties, allowing greater flexibility. Homeowners can save S$10,000+ over loan life by switching to rates as low as 2.5-3% SORA-based packages from banks like DBS or HSBC.
This refinancing guide covers regulations from MAS and HDB, real examples like refinancing a S$800,000 HDB loan in Toa Payoh, and tools to calculate savings. Homejourney verifies all data for trust, helping you avoid pitfalls like lock-in penalties.
1. Refinancing Fundamentals
Mortgage refinancing Singapore means switching your existing home loan to a new one, typically for better rates, shorter tenure, or cash-out. Unlike HDB loans, bank loans allow refinancing to any participating bank, subject to LTV caps up to 75% for most borrowers.
Key benefits include lower monthly payments—e.g., dropping from 3.5% to 2.8% on a S$500,000 loan saves ~S$150/month. However, it's not free: factor in fees and TDSR (capped at 60% of income, waived for some refinancing).
What is Mortgage Refinancing?
Refinancing replaces your current loan with a new one from the same or different bank. Common for HDB flats post-MOP (Minimum Occupation Period) or private condos like those in Punggol or Orchard.
Per MAS rules, refinanced loans follow tenure caps: max age 65 at end for most, or 75 for seniors. HDB notes you need final statements from current financier and new offer letter.
Repricing vs Refinancing: Key Differences
Repricing stays with your current bank, negotiating a new package without full redemption. No legal fees, but limited to bank's offerings.
Refinancing (full switch) accesses better deals from competitors like UOB or Standard Chartered. Involves costs but often higher cash rebates (up to 0.35% of loan). See 再融资vs重新定价：哪个更适合你？Homejourney指南 ">Repricing vs Refinancing Guide.
| Aspect | Repricing | Refinancing |
|---|---|---|
| Bank Switch | No | Yes |
| Costs | Low/none | S$2,000-S$5,000 |
| Rebates | Small | Up to S$10,000 |
| Best For | Minor rate drop | Major savings |
When to Refinance Your Home Loan
Refinance if new rates are ≥0.5% lower than current, post-lock-in (2-3 years typical). Ideal 3-6 months before lock-in ends to avoid penalties (1-1.5% of loan).
For 2026, with SORA stabilizing ~2.8-3.2%, target if your rate exceeds 3.5%. Check Homejourney's bank rates page for live comparisons.
2. Financial Analysis & Savings Potential
Real example: S$800,000 HDB loan in Bedok (outstanding S$600,000, 25 years left) at 3.5% vs new 2.8% SORA. Monthly drops from S$3,000 to S$2,500, saving S$6,000/year.
Total savings hinge on tenure: shortening from 25 to 20 years amplifies interest reduction. Use Homejourney's calculator at mortgage calculator.
Hidden Costs of Refinancing
Beyond interest: legal fees (S$1,500-S$3,000), valuation (S$500-S$1,500), discharge fee (S$200-S$500), clawback if rates rise soon. Total ~1-1.5% of loan.
Details in 房贷再融资隐藏成本完整解析 | Homejourney指南 ">Hidden Costs Guide. Always compute break-even first.
Break-Even Calculation Methodology
Formula: Break-even months = Total Refinancing Costs / Monthly Savings.
Example: Costs S$4,000, savings S$200/month → 20 months. Refinance if you plan to stay ≥20 months. See How to Calculate If Refinancing Is Worth It | Homejourney ">How to Calculate Savings.
- Step 1: List fees (legal, valuation).
- Step 2: Compute new vs old EMI using PMT formula.
- Step 3: Divide costs by difference.
3. Interest Rates & SORA in 2026
SORA (Singapore Overnight Rate Average) replaced SIBOR as benchmark. 3M SORA ~2.9%, 6M ~3.1% in early 2026. Fixed deposits (FD) pegs offer stability at 2.8-3.5%.
Floating SORA suits rate fall expectations; fixed for predictability. Track via Homejourney for precise timing.
SORA Trends
The chart below shows recent interest rate trends in Singapore:
As seen, SORA dipped 0.2% in Q4 2025, signaling refinancing window. Compare with banks on Homejourney bank rates.
2026 Best Bank Rates for Refinancing
Top packages (as of Jan 2026):
| Bank | Rate (p.a.) | Rebate | Lock-In |
|---|---|---|---|
| DBS | SORA + 0.6% | 0.3% | 2 yrs |
| OCBC | 2.88% fixed | 0.25% | 3 yrs |
| UOB | SORA + 0.55% | 0.35% | 2 yrs |
| HSBC | FDMR - 0.05% | 0.2% | 2 yrs |
Full comparison: Best Bank Refinancing Rates Comparison 2026 | Homejourney ">Best Rates 2026. Rates from DBS/OCBC/UOB/HSBC/Standard Chartered/Maybank/CIMB/RHB/Public/Hong Leong/Citibank via Homejourney.
4. Timing & Lock-In Strategies
Avoid refinancing in lock-in (penalty 1-2% of original loan). Start 4-7 months prior: notice period 1-3 months + processing 1-2 months.
2026 outlook: If SORA falls below 2.8%, refinance aggressively. Insider tip: HDB flats in mature estates like Queenstown see higher equity gains, boosting LTV.
5. Step-by-Step Refinancing Guide
- Assess Eligibility: Check TDSR/MSR via Homejourney calculator. Need income proofs, CPF statements.
- Compare Rates: Use Homejourney for multi-bank quotes.
- Apply: Submit via Singpass on Homejourney—one form, multiple offers.
- Legal & Valuation: Appoint lawyer; bank values property (e.g., S$1.2M for Tampines condo).
- Sign & Disburse: 4-8 weeks total. Track on Homejourney dashboard.
Documents: IC, income slips (3 months), tax assessments, current loan statement. HDB requires lawyer authorization.
6. Negotiation & Money-Saving Strategies
- Leverage competing offers: Show UOB quote to OCBC for match.
- Bundle with credit cards/insurance for extra rebates.
- Cash-out for reno: Up to 70% LTV, but recalculate affordability.
- Shorten tenure: Save S$50,000+ interest on 30-year loan.
Pro tip: Refinance pre-CNY for promo rebates. Link with property search on Homejourney search.
How Homejourney Makes Refinancing Safe & Simple
Homejourney builds trust with verified rates from all major banks. Compare DBS vs OCBC instantly, apply once via Singpass for offers from HSBC, Maybank and more—no branch visits.
Track real-time SORA, calculate savings, connect with our mortgage brokers. Prioritizing safety, we ensure transparent processes. Visit bank-rates to start.
FAQ: Mortgage Refinancing Singapore 2026
What is the difference between repricing and refinancing?
Repricing stays with your bank; refinancing switches banks for better deals. Refinancing offers higher rebates but incurs fees.
When should I refinance my home loan in Singapore?
If rates drop 0.5%+, post-lock-in, and break-even <24 months. Best in 2026 if SORA <3%.
How much does refinancing cost in 2026?
S$2,000-S$5,000 total, including legal (S$2,000), valuation (S$1,000), fees.
Can I refinance my HDB loan?
Yes, to banks post-MOP. Cannot go bank-to-HDB. Need HDB consent if CPF used.
What is the best bank for refinancing 2026?
Depends on profile: UOB for rebates, DBS for fixed. Compare on Homejourney.
Does TDSR apply to refinancing?
Exempt for owner-occupied residential refinancing per MAS updates.
How long does refinancing take?
4-8 weeks: 1-2 for approval, 2-4 for legal.
Next Steps with Homejourney
Ready for mortgage refinancing Singapore?
- Compare rates at https://www.homejourney.sg/bank-rates.
- Calculate savings with our tool.
- Apply via Singpass—let banks compete.
