Home Loan Refinancing Singapore — Save up to S$60,000 (2026)
If your existing loan is on board rate or above 2.5%, you're almost certainly overpaying. We compare 16 banks, model legal subsidy and clawback, and switch you only when the net number is worth it. No broker fee.
Refinancing — switching your existing home loan to a different bank — is the single highest-leverage decision a Singapore home owner makes after the original purchase. Done right, it can save five-figure sums net of costs. Done wrong, you trigger a prepayment penalty or a subsidy clawback that wipes out the gain. This page is the framework we use to decide both.
Lock-in expiry timing — start 4–5 months early
Singapore retail banks require 3 months' written notice to redeem an existing loan. Add roughly 4–6 weeks for the new bank's IPA, valuation, and legal completion, and the practical lead time is 4 to 5 months ahead of your lock-in expiry. Refinancing during the lock-in window typically triggers a 1.5% prepayment penalty on the outstanding loan — on a S$1M loan, that's S$15,000 lost before the switch even helps. The cleanest move is for the new loan to draw down on the day after your lock-in expires.
Don't have lock-in expiry in your calendar? It's printed on your Letter of Offer. We can also pull it from your latest mortgage statement — send us a redacted PDF over WhatsApp. For more on timing, see our analysis of when to refinance in Singapore.
Legal subsidy & clawback — the real math
When you took your existing loan, the bank likely subsidised legal fees (S$1,800–S$2,500) and valuation. That subsidy comes with a clawback period — typically 3 years from drawdown. Refinance before that ends and the bank claws back the subsidy, chargeable on top of the prepayment penalty.
The good news: most banks now offer a fresh legal subsidy on the new loan, available on outstanding loans usually above S$300,000–S$500,000. We model the full picture — old clawback (if any), new subsidy, valuation cost, and 2–5 year interest differential — before recommending any switch. Below is a typical case for an HDB owner on a 3.5% legacy bank loan with S$500K outstanding:
Fixed vs SORA — the decision right now
As of May 2026, 2-year fixed refinance packages start at 1.40% p.a. and SORA-pegged refinance packages at 0.97% p.a. (3M Compounded SORA at 1.06% + spread). Fixed wins on certainty; SORA wins on absolute rate today. Heuristic:
- Take fixed if you want predictable cashflow, your income is bonus or commission heavy, or you'd rather not actively monitor rates.
- Take SORA if you have a 6-month cash buffer, follow rate cycles, and want the absolute lowest cost today — accepting quarterly resets.
Our daily-updated live rates page shows where each tier is this week. A quick read on the broader regulatory picture is in our note on the MAS 4% stress test, which still binds at refinance — your TDSR is reassessed against the 4% floor under TDSR / MSR rules.
When NOT to refinance
Three scenarios where we tell clients to stay put:
- Inside lock-in: the 1.5% prepayment penalty almost always exceeds the savings. Wait it out.
- Outstanding loan under S$200K: fixed legal and admin costs eat the savings. The interest differential is too small.
- Selling within 12 months: break-even on the switch usually requires 18–36 months of monthly savings to recoup costs.
We don't earn anything if you don't switch. We tell you to stay put when staying is the right answer. Our independence is the whole point.
See your refinance savings in two minutes
Our free personalised mortgage report shows exactly how much you'd save against today's 16-bank rate sheet — with full clawback maths included. Or model it yourself with the affordability calculator.
Refinancing, Answered
When should I start the refinancing process in Singapore?
Most Singapore banks require 3 months' written notice to redeem your existing loan. Start comparing at least 4–5 months before your lock-in ends so paperwork, valuation, and legal completion line up exactly with the lock-in expiry. Refinancing during lock-in usually triggers a 1.5% prepayment penalty that wipes out the savings.
What is the legal subsidy clawback and how does it work?
When you take a loan, banks often subsidise legal fees (typically S$1,800–S$2,500) and valuation. If you refinance before the subsidy clawback period ends — usually 3 years from drawdown — the bank claws that subsidy back. Many refinancing offers include a fresh legal subsidy with the new bank, but only if your loan size is above a minimum (commonly S$300,000–S$500,000). We model the net savings after both old clawback and new subsidy.
How much can I save by refinancing in 2026?
If your current rate is 3.5% and you switch to a 1.40% fixed package on a S$1M loan over 25 years remaining, the headline saving is roughly S$24,000 a year in interest in year one — and over the full tenure, savings can exceed S$60,000 net of legal and clawback costs. Smaller HDB loans of S$300K–S$500K typically see S$8,000–S$20,000 of net savings. Use our refinance calculator to model your exact case.
Should I refinance into a fixed package or SORA-pegged in 2026?
SORA is currently cheaper at 0.97% vs fixed from 1.40%, but SORA resets quarterly and is exposed to the next rate cycle. If you're refinancing primarily to lock in low rates, take fixed. If you're confident the next 12–24 months stay flat or fall, SORA wins. We size both options against your specific cashflow buffer.
When does it NOT make sense to refinance?
Three common cases: (1) you're still inside lock-in and the prepayment penalty would exceed the savings; (2) your outstanding loan is under S$200K — fixed legal and admin costs eat the savings; (3) you plan to sell within 12 months — break-even on the switch usually requires 18–36 months of savings. We tell you to stay put when staying is the right answer.