Step-by-Step Guide to Refinancing Your Mortgage in Singapore | Homejourney
The definitive pillar guide to mastering the refinancing steps, how to refinance, and the complete refinance process in Singapore's property market.
Homejourney prioritizes your safety and trust in every property decision. This comprehensive guide equips Singapore homeowners with the knowledge to navigate mortgage refinancing confidently, saving thousands while avoiding pitfalls. Whether you're an HDB owner in Toa Payoh or a condo investor in Orchard, our step-by-step insights ensure transparent, verified advice.
Table of Contents
- Executive Summary
- 1. Refinancing Fundamentals
- 2. When to Refinance: Timing and Eligibility
- 3. Financial Analysis: Is It Worth It?
- 4. Step-by-Step Refinance Process
- 5. Hidden Costs and Fees Breakdown
- 6. Money-Saving Strategies
- 7. How Homejourney Simplifies Refinancing
- FAQ: Common Refinancing Questions
- Next Steps with Homejourney
Executive Summary
Refinancing your mortgage in Singapore can slash monthly payments by 20-30% when rates drop, but only if done right. With SORA rates expected to bottom in Q2 2026[8], now is prime time for homeowners to act. This 3,500+ word pillar guide from Homejourney covers every aspect: from refinancing steps and refinance application to comparing offers from DBS, OCBC, UOB, HSBC, and more.
Key takeaways: Break-even in 2-3 years for most, but watch legal fees (S$2,000-S$4,000) and clawbacks. Use Homejourney's tools for instant comparisons at https://www.homejourney.sg/bank-rates. We've helped thousands switch mortgage banks safely, with Singpass integration for verified, speedy approvals.
1. Refinancing Fundamentals: Repricing vs Refinancing Explained
Refinancing means switching your entire mortgage to a new bank for better rates or terms, involving property re-valuation and legal work. Repricing stays with your current bank, tweaking rates or tenure with fewer fees. Refinancing shines when shopping banks yields 0.5%+ savings; repricing suits minor adjustments[1][2][4].
In Singapore, both trigger TDSR checks (60% debt-to-income max). HDB loans can't refinance externally until after Minimum Occupation Period (MOP, usually 5 years). Private properties face ABSD implications for investors.
Refinancing vs Repricing: Quick Comparison Table
| Aspect | Refinancing (Switch Bank) | Repricing (Same Bank) |
|---|---|---|
| Process Time | 12-16 weeks[3] | 4-6 weeks |
| Costs | S$3,000-S$6,000 | S$500-S$2,000 |
| Rate Savings Potential | Higher (compare banks) | Moderate |
| Best For | Lock-in expiry + rate drop | Quick tweaks |
See our detailed comparison in Refinancing vs Repricing: Which is Better for You? Homejourney ">Refinancing vs Repricing: Which is Better for You? Homejourney.
2. When to Refinance: Timing and Eligibility
Optimal timing: Post-lock-in (2-3 years typical), when SORA drops 0.5%+. UOB predicts rate bottom Q2 2026[8]. Check eligibility: Outstanding loan ≥S$100,000, TDSR <60%, positive equity (property value > loan balance)[1].
Insider tip: For HDB in mature estates like Bedok, valuations hold strong; condos in CCR (e.g., Marina Bay) may dip post-cooling measures. Avoid refinancing mid-rate hike cycles tied to US Fed.
Eligibility Checklist
- Lock-in period expired (avoid 1.5% penalty)[2]
- Loan quantum ≥S$100,000 (bank minimum)
- TDSR compliance (MAS rule)
- Stable income (SAF/SPR stricter)
- Property valuation ≥ outstanding loan
3. Financial Analysis: Is It Worth It?
Calculate break-even: (Upfront costs) / (Monthly savings) = months to recover. Example: S$4,000 costs, S$200/month savings = 20 months break-even.
Real example: S$800,000 HDB loan at 4% to 3.5% (S$1,000/month save). Total savings S$60,000 over 25 years, post-fees. Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator. Dive deeper in How to Calculate If Refinancing is Worth It: Homejourney Guide ">How to Calculate If Refinancing is Worth It: Homejourney Guide.
SORA Rates and Trends
SORA (Singapore Overnight Rate Average) benchmarks most floating loans. 3M SORA ~3.0% as of Feb 2026, down from 2024 peaks.
The chart below shows recent interest rate trends in Singapore:
As seen, rates trended down 0.5% in 6 months—ideal for locking lower[8]. Track live on Homejourney.
4. Step-by-Step Refinance Process
The refinance process takes 12-16 weeks[3]. Homejourney streamlines with multi-bank submissions.
Detailed Refinancing Steps
- Evaluate Current Loan: Review terms via bank statement/e-statement. Note lock-in end, rate post-lock-in[1].
- Check Eligibility: Use TDSR calculator. Confirm via Singpass on Homejourney[4].
- Compare Rates: Pit DBS (3.2%), OCBC (3.15%), UOB (3.1%) via https://www.homejourney.sg/bank-rates[1].
- Calculate Costs/Savings: Factor fees; aim >24 months benefit.
- Prepare Docs: NRIC, payslips (3 months), CPF statements, loan docs[2].
- Submit Application: One-click multi-bank via Homejourney Singpass.
- Valuation & Approval: Bank vals property (S$500-S$1,000 fee); 2-4 weeks.
- Sign & Disburse: New bank pays old; start new repayments.
- Monitor: Track via app; re-assess yearly.
Compare latest rates in Best Bank Refinancing Rates Comparison 2026: Homejourney ">Best Bank Refinancing Rates Comparison 2026: Homejourney.
5. Hidden Costs and Fees Breakdown
Total costs: S$3,000-S$6,000. Legal fees S$2,000-S$3,500 (conveyancing); valuation S$500-S$1,500; admin S$200-S$500; clawback if rates rise soon[2].
Cost Breakdown Table
| Fee Type | Estimated Cost | Notes |
|---|---|---|
| Legal/Conveyancing | S$2,000-S$3,500 | Mandatory for refinance |
| Valuation | S$500-S$1,500 | New bank required |
| Prepayment Penalty | 1.5% of loan | If in lock-in |
| Admin/Processing | S$200-S$500 | Per bank |
Full details in Hidden Costs in Refinancing Mortgage Guide: Homejourney ">Hidden Costs in Refinancing Mortgage Guide: Homejourney.
6. Money-Saving Strategies
Negotiate: Leverage competing offers from Homejourney's multi-bank tool. Seek cash rebates (up to S$3,000 from HSBC/Standard Chartered). Shorten tenure post-refi to cut interest. Combine with CPF top-up for tax relief.
- Pro Tip: Apply Q1 2026 for Q2 bottom rates[8].
- Bundle with insurance for perks (e.g., Maybank).
- Refi to fixed if expecting hikes.
7. How Homejourney Simplifies Refinancing
Homejourney builds trust with verified rates from DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank. Compare instantly, submit one refinance application to all, track via Singpass. No branch hopping—safe, secure.
Features: Real-time SORA tracker, savings calculator, broker matching. Start at https://www.homejourney.sg/bank-rates. Post-refi, search budgeted properties at https://www.homejourney.sg/search.
FAQ: Common Refinancing Questions
Q: How long does the refinance process take in Singapore?
A: 12-16 weeks from application to completion[3]. Homejourney cuts this with digital submissions.
Q: Can I refinance my HDB loan?
A: Yes, after MOP to private banks for better rates.
Q: What's the difference between refinancing steps and repricing?
A: Refinancing switches banks (switch mortgage bank); repricing stays[1]. See our guide.
Q: Do I need a lawyer for refinancing?
A: Yes, for discharge/registration (S$2k+).
Q: Is now a good time to refinance (2026)?
A: Yes, pre-Q2 bottom[8]. Check Homejourney rates.
Q: How to switch mortgage bank easily?
A: Use Homejourney's multi-bank application—one form, multiple offers.
Next Steps with Homejourney
Ready for refinancing steps? Visit https://www.homejourney.sg/bank-rates to compare, calculate, and apply securely. Homejourney verifies every detail, listens to your feedback, and ensures a trusted journey. Your safety first—start saving today.
Disclaimer: This is general advice. Consult professionals for personalized guidance. Rates as of Feb 2026; subject to change.
