Step-by-Step Guide to Refinancing Your Mortgage in Singapore | Homejourney
The definitive pillar guide to mastering the refinancing steps, how to refinance, refinance process, refinance application, and switch mortgage bank safely in Singapore's property market.
Homejourney prioritizes your safety and trust by verifying every detail in this guide, helping you make confident decisions without the risks of misinformation. Whether you're an HDB owner in Toa Payoh or a condo investor in Orchard, this exhaustive resource covers everything you need to know.[1][2]
Executive Summary
Refinancing your mortgage in Singapore can save you thousands in interest, but only if done right. This pillar guide breaks down the entire refinance process into actionable steps, from evaluating your current loan to completing the switch. Expect to learn refinancing steps that take 12-16 weeks, hidden costs like legal fees ($2,000-$4,000), and how to negotiate rates from DBS, OCBC, UOB, and more.[1][3]
Using Homejourney's platform, compare rates securely at https://www.homejourney.sg/bank-rates, calculate savings with our refinancing calculator, and submit one application to multiple banks via Singpass. We've helped thousands avoid pitfalls—start your safe journey today.[3][4]
Table of Contents
- 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 Guide to the Refinance Process
- 5. Hidden Costs and Fees Breakdown
- 6. Money-Saving Strategies and Negotiation Tips
- 7. How Homejourney Makes Refinancing Safe and Simple
- 8. FAQ: Common Refinancing Questions
1. Refinancing Fundamentals: Repricing vs Refinancing
Refinancing means switching your existing mortgage to a new lender for better terms, like lower rates or longer tenure. Repricing stays with your current bank but changes the package. Understand the difference to choose wisely.[1][3]
In Singapore, refinancing involves a new loan to pay off the old one, often from banks like DBS, OCBC, or HSBC. It's ideal when market rates drop or your finances improve. Repricing is faster (5 weeks vs 13 weeks) but limited to your bank's options.[3]
| Feature | Refinancing | Repricing |
|---|---|---|
| Lender Change | Yes (switch banks) | No (same bank) |
| Timeline | 12-16 weeks | ~5 weeks |
| Costs | Higher (legal, valuation) | Lower |
| Rate Options | Wider (all banks) | Limited |
Refinancing suits those out of lock-in periods seeking the best rates. For details, see our cluster Refinancing vs Repricing: Which is Better for You?[1][3]
Key Terms Explained
- SORA: Singapore Overnight Rate Average, the benchmark for floating rates (e.g., 3M SORA ~2.8% in 2026).
- Lock-in Period: 2-3 years where early exit penalties apply (1-1.5% of loan).
- LTV: Loan-to-Value ratio, capped at 75% for private properties post-ABSD changes.[6]
2. When to Refinance: Timing and Eligibility
Refinance 3 months before your lock-in ends to avoid penalties and higher rates. Ideal if current rates are 0.5%+ lower than yours.[5]
Eligibility requires stable income, good credit, LTV <75%, and property valuation supporting the loan. TDSR exemptions apply for owner-occupied refinances.[6]
Eligibility Checklist
- Out of lock-in or willing to pay penalty.
- Debt-to-income <60% (TDSR flexible for refinances).
- Property equity >25%.
- Credit score >700 (check via Credit Bureau Singapore).
Insider tip: HDB owners in mature estates like Queenstown see higher valuations, boosting LTV. Time it when SORA dips—track live at Homejourney.[1]
3. Financial Analysis: Calculate If It's Worth It
Break-even period = Total costs / Monthly savings. Example: $3,500 costs, $200 monthly savings = 17.5 months break-even.[1]
Real example: $800,000 HDB loan at 3.5% vs new 2.8% SORA. Saves $15,000 over 5 years post-costs. Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator.[2]
The chart below shows recent interest rate trends in Singapore:
As seen, SORA has stabilized around 2.7-2.9% in late 2025, making now (2026) prime for fixed-to-floating switches. For calculations, read How to Calculate If Refinancing Is Worth It.[1][5]
4. Step-by-Step Guide to the Refinance Process
The refinance process takes 12-16 weeks. Follow these refinancing steps for a smooth refinance application.[1][3]
- Step 1: Assess Current Loan (Week 1)
Review lock-in, rates, tenure. Compare via https://www.homejourney.sg/bank-rates. - Step 2: Shop Rates (Weeks 1-2)
Check DBS (2.68% promo), OCBC, UOB, HSBC. Use Homejourney for multi-bank quotes. - Step 3: Check Eligibility & Gather Docs (Weeks 2-3)
NRIC, payslips, property title, existing loan stmt. Singpass auto-fills via Homejourney.[4] - Step 4: Submit Application (Week 3)
Apply to new bank (e.g., switch mortgage bank from UOB to Standard Chartered). One app on Homejourney reaches all. - Step 5: Valuation & Approval (Weeks 4-8)
Bank valuates property (e.g., $1.2M for Tampines condo). - Step 6: Legal Conveyancing (Weeks 9-12)
Law firm handles redemption. Costs $2,500 avg.[2] - Step 7: Completion & CPF Setup (Week 13-16)
Sign digitally, update CPF via Singpass.[4]
Pro tip: For private properties, expect URA caveats check. Homejourney verifies docs for error-free apps.[2][3]
5. Hidden Costs and Fees Breakdown
Total costs: $3,000-$6,000. Factor before proceeding.[1]
| Cost Type | Estimate | Notes |
|---|---|---|
| Legal Fees | $2,000-$4,000 | Conveyancing |
| Valuation | $500-$1,500 | Bank-required |
| Penalty | 1-1.5% loan | If in lock-in |
| Processing | $200-$500 | Per bank |
Clawback if you refinance soon after promos. See Hidden Costs of Refinancing vs Repricing.[1][3]
6. Money-Saving Strategies and Negotiation Tips
Negotiate: Leverage quotes from DBS vs OCBC for 0.1-0.2% cuts. Ask for cash rebates ($1,500-$3,000).[1]
- Combine with debt consolidation if eligible.
- Shorten tenure post-refi to save interest.
- Time for falling SORA (track on Homejourney).
Compare best rates in Best Bank Refinancing Rates 2026. Banks compete via Homejourney—receive multiple offers safely.[1]
7. How Homejourney Makes Refinancing Safe and Simple
Homejourney builds trust with verified rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank. No branch visits—Singpass apps in seconds.[4]
- Compare & calculate at https://www.homejourney.sg/bank-rates.
- One app to all banks; track SORA live.
- Connect with our mortgage brokers for personalized advice.
- Post-refi, search properties at https://www.homejourney.sg/search or maintain with aircon services.
Disclaimer: This is general advice. Consult professionals for your situation. Homejourney verifies data for your safety.[1][6]
8. FAQ: Common Refinancing Questions
Q: How long is the refinance process in Singapore?
A: 12-16 weeks from application to completion.[3]
Q: Can I refinance HDB loans?
A: Yes, same steps; CPF usage seamless via Singpass.[2]
Q: What's the best time to switch mortgage bank?
A: 3 months pre-lock-in end. See Hidden Refinancing Costs & Best Time.[5]
Q: Do I need a lawyer for refinancing?
A: Yes, for discharge/new mortgage (~$3,000).[2]
Q: How to refinance with Homejourney?
A: Visit bank-rates, compare, apply once—banks bid for you.
Q: Is refinancing worth it if rates are similar?
A: Calculate break-even; often no if costs exceed savings. Use our tool.[1]
Q: What docs for refinance application?
A: NRIC, income proof, property docs, loan statements.[3]
More in our clusters.
Ready for your refinancing steps? Start safely with Homejourney at https://www.homejourney.sg/bank-rates. We listen to feedback to keep you secure.
