Step-by-Step Guide to Refinancing Your Mortgage in Singapore | Homejourney
Refinancing your mortgage can save Singapore homeowners thousands in interest, but only if done right. This definitive Homejourney guide covers every refinancing step, from assessing eligibility to completion, with Singapore-specific regulations, costs, and insider tips for 2026.
Homejourney prioritizes your safety and trust by verifying all data and simplifying the refinance process through our multi-bank platform. Compare rates from DBS, OCBC, UOB, HSBC, and more at Homejourney bank rates to start saving today.
Table of Contents
- Executive Summary
- 1. Refinancing Fundamentals: Repricing vs Refinancing
- 2. When to Refinance: Timing and Eligibility
- 3. Financial Analysis: Calculate If It's Worth It
- 4. Step-by-Step Refinancing Guide
- 5. Hidden Costs and Fees Breakdown
- 6. Money-Saving Strategies and Negotiation Tips
- 7. How Homejourney Makes Refinancing Safe and Simple
- FAQ: Common Refinancing Questions
- Next Steps with Homejourney
Executive Summary
Refinancing replaces your existing home loan with a new one, often from a different bank, to secure better rates or terms. In Singapore's 2026 market, with SORA rates fluctuating around 3%, savvy homeowners are switching mortgage banks to save up to $20,000 over loan tenure.
This pillar guide draws from HDB, MAS regulations and real Singapore cases. Whether you're an HDB upgrader in Tampines or a private property owner in Orchard, follow our refinance application steps to make informed decisions. Homejourney verifies all rates for transparency, ensuring a trusted experience.
1. Refinancing Fundamentals: Repricing vs Refinancing
Understand the difference to choose wisely. Repricing keeps you with the same bank but changes your loan package (e.g., from fixed to SORA). Refinancing (or switching banks) involves a full new loan, often with cash rebates.
| Aspect | Repricing | Refinancing |
|---|---|---|
| Bank Change | No | Yes |
| Costs | Low ($200-500) | Higher ($2,000-5,000) |
| Cash Rebate | Rare | Common (up to 0.35%) |
| Best For | Minor rate tweaks | Big savings, new features |
Repricing suits if inside lock-in; refinancing shines for better offers elsewhere. Check Homejourney's refinancing rates for real-time comparisons[1][4].
SORA Rates Explained
SORA (Singapore Overnight Rate Average) is the key benchmark for floating loans in 2026, replacing older SOR. Most banks peg to 3M compounded SORA plus 0.8-1.2%. Fixed rates offer stability but higher costs.
The chart below shows recent SORA trends in Singapore:
As seen, rates peaked at 3.2% mid-2025 but eased to 2.9% by January 2026, per MAS data. Track live on Homejourney.
2. When to Refinance: Timing and Eligibility
Key Eligibility Criteria
You qualify if:
- Loan-to-Value (LTV) ≤ 75% for owner-occupied properties (HDB/ private).
- Stable income; TDSR exempt for refinancing owner-occupied homes per MAS 2024 update[4].
- Good credit score (>1,400 on Credit Bureau).
- Property value up (e.g., HDB in Punggol appreciated 15% since 2023).
Insider tip: Refinance 6-12 months before lock-in ends to avoid 1.5% penalties. For a $800,000 loan, that's $12,000 saved.
Best Timing
Refinance when market rates drop 0.5% below yours, post-lock-in, or with equity growth. In 2026, with expected Fed cuts, Q2 is ideal. Avoid if break-even >24 months.
Real example: A Toa Payoh HDB owner refinanced from DBS 3.5% fixed to UOB SORA+0.9% (2.8%), saving $15,000 over 20 years[1].
3. Financial Analysis: Is Refinancing Worth It?
Calculate break-even: (Refi costs / Monthly savings) = months to recover. Example: $3,000 costs, $150/month savings = 20 months break-even.
Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator. Factor TDSR (though exempt), age limits (HDB up to 65 at end of loan).
Real Savings Table
| Loan Amount | Old Rate | New Rate | Monthly Saving | 5-Year Total |
|---|---|---|---|---|
| $800k | 3.5% | 2.8% | $120 | $7,200 |
| $1.2M | 3.2% | 2.5% | $210 | $12,600 |
Source: Simulated on Homejourney tools[1][2]. Always verify with How to Calculate If Refinancing is Worth It.
4. Step-by-Step Refinancing Guide
Follow this how to refinance roadmap for a smooth refinance process.
- Step 1: Assess Current Loan - Check lock-in, rate, tenure via bank statement. Use Homejourney tracker.
- Step 2: Compare Packages - Shop DBS, OCBC, UOB, HSBC at Homejourney bank-rates. Aim for SORA+0.8% + rebate[1].
- Step 3: Check Eligibility - Valuation, LTV, income docs ready.
- Step 4: Submit Application - Via Singpass on Homejourney for multi-bank quotes. One app, multiple offers[3].
- Step 5: Negotiation - Leverage offers to pit banks (e.g., OCBC vs UOB).
- Step 6: Legal Completion - Lawyer handles discharge/new mortgage[2].
- Step 7: CPF Setup - Update via Singpass in days[3].
Timeline: 2-4 weeks. Insider tip: Apply mid-month to align CPF payouts.
5. Hidden Costs and Fees Breakdown
Total costs: $2,500-$6,000. Key fees:
- Valuation: $500-$1,500 (URA panel valuer).
- Legal: $2,000-$3,000.
- Clawback: If rebate >6m tenure remaining.
- Processing: $200-$500.
Details in Hidden Costs of Mortgage Refinancing. Offset with 0.3% rebates ($2,400 on $800k loan).
6. Money-Saving Strategies and Negotiation Tips
Negotiate: Show competing offers from Homejourney. Ask for waiver on fees, higher rebate. Banks like HSBC offer up to 0.35% for high-value loans.
- Bundle with credit cards/insurance for extras.
- Cash-out for reno (up to 70% LTV).
- Shorten tenure post-refi to save interest.
Pro tip: Time for festive promos (CNY 2026). See Best Bank Refinancing Rates 2026.
7. How Homejourney Makes Refinancing Safe and Simple
Homejourney builds trust with verified rates and Singpass integration. Key features:
- Compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank instantly.
- One refinance application to all banks - no branch hopping.
- Live SORA tracker and savings calculator.
- Mortgage brokers for personalized advice.
Start at https://www.homejourney.sg/bank-rates. Link to properties in budget via Homejourney search.
FAQ: Common Refinancing Questions
Q: How long does refinancing take in Singapore?
A: 2-4 weeks from application to new instalments[2][3].
Q: Can I refinance HDB loans?
A: Yes, to banks after 2.5-year HDB lock-in. LTV up to 80%[1].
Q: What's the difference between refinancing and repricing?
A: Repricing stays with bank; refinancing switches for better deals. Details here[1].
Q: Do I need a new valuation?
A: Yes, costs $588 (HDB flat). Banks reassess LTV[2].
Q: Is refinancing free on Homejourney?
A: Yes, our platform connects you safely to partners at no cost.
Q: Can I cash out via refinancing?
A: Yes, up to LTV limits for reno/debt consolidation.
Disclaimer: This is general advice. Consult professionals for personalized guidance. Rates as of Jan 2026; verify on Homejourney.
Next Steps with Homejourney
Ready to explore refinancing steps? Visit Homejourney bank-rates to compare, calculate, and apply via Singpass. Our verified platform ensures transparency, saving you time and money safely.
Post-refi, maintain your home with Homejourney aircon services. Trust Homejourney for your full property journey.
