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 comprehensive Homejourney guide covers every refinancing step, from assessing your current loan to switching banks, with Singapore-specific insights, calculations, and tools to ensure a safe, transparent process.
Homejourney prioritizes your financial security by verifying rates from DBS, OCBC, UOB, and more, helping you compare and apply without hassle. Whether you're an HDB owner or private property investor, follow these refinancing steps to make informed decisions.
Executive Summary
Refinancing involves replacing your existing home loan with a new one, often from a different bank, to secure better terms like lower interest rates or cash rebates. In Singapore's 2026 market, with SORA rates stabilizing post-2024 peaks, over 20% of homeowners are exploring options as lock-in periods expire.
This pillar guide outlines the full refinance process, including HDB and private property rules from MAS and HDB. Expect 12-16 weeks for completion, potential savings of S$10,000+ over loan tenure, and pitfalls like clawback penalties. Homejourney's platform lets you compare rates instantly and submit one application to multiple banks via Singpass.
Disclaimer: This is educational content. Consult a licensed financial advisor for personalized advice. Rates and regulations as of 2026.
1. Refinancing Fundamentals: Repricing vs Refinancing
Refinancing means switching your mortgage to a new lender for better rates or terms, while repricing stays with your current bank but changes the package. Refinancing offers more options but takes longer (13 weeks vs 5 weeks for repricing).[2]
Key differences:
| Feature | Refinancing | Repricing |
|---|---|---|
| Lender Change | Yes (e.g., DBS to OCBC) | No |
| Timeline | 12-16 weeks[2] | 4-6 weeks |
| Costs | Higher (legal, valuation; often subsidized) | Lower (admin fees) |
| Savings Potential | Higher (wider bank options) | Limited |
Choose refinancing to switch mortgage bank for rates as low as 3M SORA + 0.5% from HSBC or UOB in 2026. Repricing suits quick fixes. See Refinancing vs Repricing: Which is Better for You? Homejourney ">Refinancing vs Repricing: Which is Better for You? Homejourney for details.[2]
Understanding SORA in Refinancing
SORA (Singapore Overnight Rate Average) is the key benchmark for floating-rate loans in Singapore, replacing SOR since 2024. Most refinancing packages peg to 3M or 6M SORA. Banks like DBS add a 0.6-0.8% margin.
The chart below shows recent interest rate trends in Singapore:
As seen, rates bottomed in Q2 2026 per UOB forecasts, ideal for locking in.[8] Track live SORA on Homejourney.
2. When to Refinance: Timing and Eligibility
Optimal timing: Post lock-in (2-3 years).[1][2] Breaking early incurs 1-1.5% penalty on outstanding loan.[1][4] MAS exemptions apply for owner-occupied refinances under TDSR flexibility.[4]
Eligibility checklist:
- Outstanding loan > S$100,000 (HDB min S$200,000)
- Lock-in expired or penalty affordable
- Positive equity (property value > loan balance)
- Stable income (TDSR <60% for new loans)
- No recent refinancing (clawback 1-3 years)
For HDB: Minimum occupation 5 years for flats; check HDB portal. Private properties: URA valuation required. Insider tip: Refinance before year-end for cashback promotions from Maybank or CIMB.
3. Financial Analysis: Is It Worth It?
Calculate break-even: Divide total costs by monthly savings. Example: S$5,000 costs, S$200 monthly savings = 25 months break-even.
Real example: S$800,000 HDB loan at 4% to 3.5% (SORA-based). Savings: S$15,600 over 25 years. Use Homejourney's calculator at https://www.homejourney.sg/bank-rates#calculator.
Detailed breakdown table:
| Scenario | Current Rate | New Rate | Monthly Saving | Break-Even (mos) |
|---|---|---|---|---|
| HDB S$500k, 25yrs | 4.0% | 3.5% | S$150 | 20 |
| Condo S$1.2m, 30yrs | 3.8% | 3.2% | S$350 | 18 |
Read How to Calculate If Refinancing is Worth It: Homejourney Guide ">How to Calculate If Refinancing is Worth It: Homejourney Guide.[1]
4. Step-by-Step Refinancing Process
Follow these refinancing steps for a smooth refinance application:
- Assess Current Loan (Week 1): Review lock-in, rate, tenure via bank statement.[1]
- Compare Rates (Weeks 1-2): Use Homejourney to check DBS (3M SORA+0.65%), OCBC, UOB.[2]
- Gather Documents (Week 2): NRIC, payslips (3 months), property deed, existing loan stmt.[2]
- Submit Application (Week 3): Via Singpass on Homejourney; one form for all banks.[3]
- Valuation & Approval (Weeks 4-8): Bank valuer assesses property; LOI issued.
- Legal Completion (Weeks 9-12): Lawyers handle discharge; pay fees.
- Drawdown (Week 13-16): New loan funds old; start repayments.[1][2]
- Post-Refinance Review: Confirm GIRO, CPF setup.[3]
Total: 12-16 weeks. Homejourney's multi-bank submission speeds it up.[3]
Documentation Checklist
- NRIC/Passport
- Latest payslips/CPF statements
- Property title deed/Option to Purchase
- Existing loan agreement/statement
- Income tax assessments (2 years)
- Bank statements (3-6 months)
5. Hidden Costs and How to Manage Them
Upfront costs: S$2,000-S$5,000. Breakdown:
- Legal fees: S$1,500-S$3,000 (subsidized by banks)
- Valuation: S$500-S$1,500
- Application: S$200-S$500
- Clawback: If promo rate unused
- Penalty: 1.5% if in lock-in[1]
Tip: Negotiate subsidies. See Hidden Costs of Refinancing Your Mortgage: What Homejourney Users Need to Know ">Hidden Costs of Refinancing Your Mortgage: What Homejourney Users Need to Know.[1]
6. Money-Saving Strategies
Negotiate: Leverage competing offers from Homejourney. Aim for <1% margin over SORA. Cash rebates: Up to S$3,000 from RHB or Public Bank.
Combine with goals: Cash-out for renovations (max LTV 75% HDB). Shorten tenure for interest savings. Check How to Save Money Refinancing Your Mortgage: Homejourney Guide ">How to Save Money Refinancing Your Mortgage: Homejourney Guide.
Insider tip: Time for Q2 2026 rate bottom.[8] Use Bank Rates for latest.
7. How Homejourney Simplifies Refinancing
Homejourney builds trust with verified rates and Singpass integration. Key features:
- Compare DBS, OCBC, UOB, HSBC, Standard Chartered, Maybank, CIMB, RHB, Public Bank, Hong Leong, Citibank instantly at https://www.homejourney.sg/bank-rates
- Refinancing calculator for savings projection
- One application to all banks; banks compete with offers
- Singpass for instant verification
- Real-time SORA tracker
- Mortgage brokers for guidance
After refinancing, search budgeted properties at https://www.homejourney.sg/search or maintain with Aircon Services . See Best Bank Refinancing Rates Comparison 2026: Homejourney ">Best Bank Refinancing Rates Comparison 2026: Homejourney.
FAQ: Common Refinancing Questions
How long does the refinance process take in Singapore?
12-16 weeks from application to drawdown.[2]
Can I refinance my HDB loan?
Yes, after 5 years occupation; no TDSR for owner-occupied.[4]
What is the cost to refinance?
S$2,000-S$5,000; banks subsidize often.[1]
Refinancing vs repricing: which is better?
Refinance for max savings; repricing for speed.[2]
Best banks for refinancing 2026?
Compare on Homejourney: UOB, DBS lead in rebates.
Do I need to visit banks?
No, apply digitally via Homejourney with Singpass.[3]
What if rates rise after refinancing?
Fixed packages available; monitor SORA.
Can I cash out on refinance?
Yes, up to LTV limits for equity release.
Next Steps with Homejourney
Start your safe refinancing journey today. Visit https://www.homejourney.sg/bank-rates to compare rates, calculate savings, and submit your refinance application. Homejourney verifies every detail, listens to your feedback, and ensures transparency for confident decisions.
Refinancing steps made simple—trust Homejourney for your property finance needs.
