Refinancing Home Loan Singapore 2026: When and How

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Quick answer

The best fixed refinancing rates in Singapore in 2026 are approximately 1.40%–1.60% per annum, while floating SORA-linked packages sit around 1.25%–1.35% p.a. Refinancing generally makes sense when your total costs — legal fees, valuation, clawback risk — can be recovered through monthly interest savings within 12 to 24 months.

The numbers at a glance

Rates are indicative as of early 2026. Always request current quotes directly from banks before making any decision.

How refinancing works: repricing vs switching bank

When your home loan lock-in period ends, you have two choices: reprice with your current bank, or refinance to a new one.

Repricing means staying with your existing bank and moving onto a new rate package. The process is straightforward — contact your bank, compare the packages they offer, and sign the revised letter of offer. Fees are low, typically $500–$800, and there is no legal work or property valuation required. The downside is that you are limited to whatever your current bank is willing to offer. Banks know that repricing customers are less likely to shop around, which sometimes means the rates on offer are not the sharpest in the market.

Refinancing means switching your mortgage to a different bank entirely. The process involves a fresh loan application, a property valuation, and a conveyancing exercise to discharge the existing mortgage and register the new one. This takes six to eight weeks from application to drawdown, so you need to start the process before your lock-in period expires — ideally three to four months ahead. Costs are higher (legal fees, valuation), but banks compete for new customers aggressively and often subsidise those costs entirely.

The decision rule is simple: get quotes from two or three competing banks, then compare the best external offer against what your existing bank will give you for repricing. If the rate gap after adjusting for the cost difference favours switching, refinance. If the numbers are close, repricing saves time and hassle.

Current 2026 rates: what to expect

Fixed refinancing packages in Singapore are priced at approximately 1.40%–1.60% per annum for two-year tenors. Among the more competitive offers in early 2026, Citi and Maybank are pricing around 1.45%, while HSBC is around 1.50%. These are fixed for the lock-in period, after which the loan typically reverts to a board rate or floating package.

Floating packages are linked to the Singapore Overnight Rate Average (SORA), specifically the three-month compounded SORA. SORA is the volume-weighted average of overnight interbank transactions and is published daily by the Monetary Authority of Singapore. Unlike the older SIBOR-linked packages, SORA reflects actual market conditions more closely. With three-month SORA around 1.05% in early 2026, banks are pricing floating packages at SORA plus 0.20% to 0.30% spread — giving effective rates of approximately 1.25%–1.35% p.a. HSBC and Maybank are near the bottom of that range at SORA + 0.20%; Citi is slightly higher at SORA + 0.23%.

Floating packages are currently cheaper than fixed, but that could change quickly if SORA rises. In an environment where rates are falling or stable, floating makes sense. If you want certainty for two years — particularly if you are already at your TDSR limit — fixed is the safer choice.

The break-even calculation: the only number that matters

Every refinancing decision reduces to one calculation: how many months will it take for your monthly interest savings to recover the total cost of switching?

The formula is straightforward:

Break-even (months) = Total refinancing costs ÷ Monthly interest savings

To find monthly interest savings, take the difference between your current interest rate and the new rate, multiply by your outstanding loan balance, and divide by 12.

Worked example: You have $800,000 outstanding on a home loan at 2.80% per annum. A bank offers you a fixed two-year package at 1.50%. Total costs — legal fees after subsidy, valuation — come to $3,000.

• Monthly interest at 2.80%: $800,000 × 2.80% ÷ 12 = $1,867
• Monthly interest at 1.50%: $800,000 × 1.50% ÷ 12 = $1,000
• Monthly savings: $867
• Break-even: $3,000 ÷ $867 = 3.5 months

That is an exceptional outcome. As a rule of thumb, a break-even within 12 months is strong, within 24 months is acceptable, and beyond 24 months you should think carefully about whether the switch is worth it.

Two situations where the maths rarely works: when your remaining loan tenure is short (say, under five years), because the absolute interest saving over a shorter period may not cover the fixed costs; and when your outstanding balance is small, for the same reason. A $200,000 loan at a 1.30 percentage point rate saving saves roughly $217 per month — the same $3,000 in fees gives you a 14-month break-even, which is still reasonable, but the margin for error is smaller.

Costs to budget for

Refinancing is not free, and overlooking a cost is the most common reason people regret a switch. Budget for the following:

Legal fees. Engaging a law firm to discharge your existing mortgage and register the new one typically costs $2,000–$3,000. Most banks competing for your business will offer to subsidise this in full through a cashback or direct payment to your lawyer. Always negotiate this — it is standard practice.

Valuation fee. Banks require an independent valuation of your property before approving the refinancing. Fees vary depending on the property type and value but generally run from a few hundred dollars for a HDB flat to higher amounts for private properties.

Clawback risk. If a bank gave you a legal subsidy or cash rebate and you sell your property or refinance again within three years, you must repay that subsidy in full. This is the clawback clause, and it is written into every offer letter. Factor it into your planning — if you think you may sell within three years, either negotiate the clawback period down or accept a package without the subsidy.

Lock-in penalty. If you refinance before your lock-in period ends, your current bank will charge a prepayment penalty of approximately 1.5% of the amount being refinanced. On a $800,000 loan, that is $12,000. In most cases, this makes early refinancing uneconomical unless rates have fallen dramatically.

When to use the Mortgage Refinancing Calculator

Reading about break-even is one thing; running the numbers on your actual loan is another. The Mortgage Refinancing Calculator lets you enter your outstanding balance, current rate, new rate, and total switching costs to get an exact break-even figure and a month-by-month comparison of interest paid under each scenario.

Use it when you have quotes in hand from at least two banks. Input the best fixed rate you have been offered, then the best floating rate, and compare both against your current rate. The calculator will also show you cumulative savings at 12, 24, and 36 months — which helps you see whether you are still in pocket after accounting for the clawback period on any legal subsidy.

If you are comparing repricing (same bank) versus refinancing (new bank), run both scenarios. Plug in the repricing rate with a $600 fee, then plug in the refinancing rate with $3,000 in fees — or $0 if the bank covers legal costs. The output will tell you which wins and by how much.

Pitfalls and edge cases

Refinancing inside your lock-in period. The 1.5% prepayment penalty is the single biggest trap. Borrowers sometimes see a low rate advertised and move without checking whether their lock-in has expired. On an $800,000 loan, the penalty alone is $12,000 — that erases roughly 14 months of savings at the rates on offer in 2026. Check your lock-in expiry date before doing anything else.

The HDB loan one-way switch. If you move from an HDB concessionary loan to a bank loan, you cannot go back. The HDB loan has no lock-in and a fixed rate of 2.60% — currently higher than bank rates, but that relationship could reverse if bank rates rise. Make the switch only if you are confident the bank loan savings justify giving up that flexibility permanently.

Clawback and near-term selling plans. If you are likely to sell within three years of refinancing — whether because of a growing family, a job move, or investment reasons — the clawback clause may neutralise your subsidy entirely. Run the numbers assuming you will trigger the clawback before committing.

TDSR at the refinancing stage. MAS requires banks to apply the Total Debt Servicing Ratio test (55% cap) when processing a refinancing application. If your financial circumstances have changed since you took out the original loan — lower income, additional debts — you may not qualify for the full refinancing amount. Check your TDSR before assuming the application will go through.

Forgetting to include costs in the break-even. The monthly savings calculation is easy to do in your head, but it is tempting to ignore the one-off costs or assume the bank will cover everything. Always use the actual net cost after subsidies — and include the clawback exposure if it is a realistic risk for you.

Bottom line

Refinancing your home loan in Singapore in 2026 offers a genuine opportunity for most borrowers on packages taken out at higher rates two or three years ago. Fixed packages at 1.40%–1.60% and floating SORA-linked packages at roughly 1.25%–1.35% p.a. represent a meaningful saving over older fixed rates in the 2.50%–3.50% range. The break-even maths are favourable for most mid-to-large loan balances, particularly when banks are offering to cover legal fees — a $3,000 saving on a $800,000 loan at a 1.30 percentage point lower rate pays back in under four months. The main risks are the lock-in prepayment penalty if you move too early and the clawback clause if you sell within three years of switching. Do the calculation on your specific numbers before deciding — use the Mortgage Refinancing Calculator to run both the fixed and floating scenarios side by side and find your exact break-even.

FAQ

When does it make sense to refinance my home loan in Singapore?

Refinancing makes sense when the monthly interest savings you gain from a lower rate will recover your total costs — legal fees, valuation fee, and any clawback risk — within 12 to 24 months. The shorter the break-even period, the stronger the case. If you have five or more years remaining on your loan tenure and your current rate is materially above what banks are offering today, a break-even of three to six months is easily achievable. Conversely, if your remaining loan is small or your tenure is short, the savings may not justify the cost and effort.

What are the current home loan refinancing rates in Singapore in 2026?

As of early 2026, fixed refinancing packages are priced at approximately 1.40%–1.60% per annum, with competitive offers from banks such as Citi and Maybank around 1.45% and HSBC around 1.50%. Floating SORA-linked packages are lower, at roughly 3-month SORA plus 0.20%–0.30% spread — with 3-month SORA around 1.05%, effective rates are approximately 1.25%–1.35% p.a. All rates carry a standard two-year lock-in period. Rates move with market conditions, so always request updated quotes from at least three banks before committing.

What costs should I budget for when refinancing?

Budget for legal fees of roughly $2,000–$3,000, though most banks offer legal subsidies that cover this in full or in part. You will also need a property valuation, which costs a few hundred dollars depending on the property and the bank. The critical hidden cost is the clawback clause: if the bank provided a legal or cash subsidy and you sell or refinance again within three years, you must repay that subsidy. If you are refinancing before your lock-in period expires, a prepayment penalty of approximately 1.5% of the refinanced amount applies — on a $800,000 loan, that is $12,000.

What is the difference between repricing and refinancing a home loan?

Repricing means you stay with your current bank and negotiate a new rate package. Fees are low — typically $500–$800 — and there are no legal or valuation requirements. The trade-off is that your existing bank may not offer the most competitive rate on the market. Refinancing means switching to a different bank entirely. It requires full legal work and a property valuation, and takes six to eight weeks, but it opens the full range of market rates. Repricing is faster and cheaper; refinancing usually secures a better rate. The break-even calculation decides which wins.

Can I refinance from an HDB loan to a bank loan in Singapore?

Yes. You can refinance from an HDB concessionary loan to a bank loan at any time, subject to the bank's eligibility and TDSR requirements. However, this is a one-way switch — once you move to a bank loan, you cannot revert to an HDB loan. This matters because HDB loans carry a fixed concessionary rate of 2.60% p.a. (0.10% above the prevailing CPF Ordinary Account rate) and have no lock-in period, giving you flexibility that bank loans do not. Before switching, calculate the break-even carefully and consider what happens to your repayments if bank rates rise significantly from current levels.