What does a lock-in period mean?

A lock-in period refers to the minimum number of years that you are required to stay with the bank for a particular package. If you decide to refinance, repay partially, or repay fully, there is likely to be a penalty imposed.

Which is the best home loan currently?

Home loans packages are changing ever so rapidly during this period of time when the interest rates environment is volatile. This means that there is no one bank that will constantly offer the best package. Comparison is where our expertise lies. Use our website to compare the different packages for you in a systematic and simple manner. On top of that, our advisers will also drop you a call to further clarify your doubts and refer you to the bank that best suits your needs.

What is the best home loan interest rate in Singapore?

The best home loan interest rate is subjective. A fixed interest rate package is usually higher since you are paying a premium for stability. This is viewed as the best package for someone who is risk-averse but might not be the best for someone who is willing to take a little more risk and enjoy more savings with a floating rate package. Compare different home loan packages using MoneySmart’s website and contact our mortgage specialists. They will clarify your doubts and refer you to the home loan that best suits your needs.

Is it worth it to refinance my housing loan?

Refinancing is the key to saving money when it comes to a housing loan. To ensure that you are not paying more than you should for your home loan, you need to refinance every 2 to 3 years. This is because most home loan packages will have a spike in interest rates after the lock-in period is over. This is especially true for a fixed-rate package. Also if you took up a floating rate with the bank 2 to 3 years ago, it is likely that you have encountered a few rounds of increment and are currently paying a much higher interest rate. This is when you can refinance to a new bank offering a better interest rate package. Or, if you foresee that the interest rate will continue rising, you can refinance to a fixed rate to hedge against that risk.

What is the cost when it comes to refinancing your home loan?

For refinancing, typically there are only 2 costs involved. Legal fees payable directly to the law firm Valuation fee payable directly to the bank Typically, as long as your remaining loan is $300K and above for HDB and $400K and above for private property, banks will provide full legal subsidy and some will even subsidise part of your valuation fee. This means that the total cost usually is minimal and definitely cheaper than repricing.

What is the difference between refinancing and repricing?

Repricing refers to changing to a different interest rate package within the same bank. For repricing, there is usually a repricing fee of between $800 and $1000. Also for existing customers changing to another package, the package offered by the current bank will usually be worse off or at best the same as what they offer for new to bank customers. Refinancing is to change to a different bank and to take up a new housing loan package from them. Banks will usually attract new customers by offering subsidies to keep the cost low for switching and their interest rate packages are usually more attractive. Therefore as long as you are eligible for the subsidies, it definitely is worthwhile to refinance.

Should I go to the bank directly or go with MoneySmart?

MoneySmart is a one-stop solution when it comes to a housing loan. We are able to offer packages from all the banks in Singapore as we are partnered with all of them. After receiving our advice, mortgage specialists from the specific bank you choose will reach out to you directly to assist you with the loan application. The benefit of using MoneySmart is that you don’t need to walk into every individual branch from different banks and you do not need to wait for days for a specialist from the bank to give you a call. The packages that you get through MoneySmart is either the same as what the banks are offering you or even lower. Best of all, our service is free. The banks will be the ones paying us a standard referral fee so we are able to provide unbiased advice and recommendations to you.

Does refinancing hurt credit score?

While refinancing your home loan could cause a slight dip in your credit score, you shouldn’t worry as this effect is only temporary and negligible. Rest assured, your credit score will bounce back to normal.

How often can I refinance a loan?

There’s no limit as to how many times you can refinance your home loan, so long as you save on interest rates. However, you should be able to plan it properly to avoid paying the penalty fee.

Refinance Home Loan in Singapore

Enjoy substantial savings when you compare and find the best home loan interest rates across our extensive list of providers. Use our free MoneySmart calculator to calculate how much money you can save from refinancing your home.

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Refinance Private Property in Singapore

In Singapore, you can only refinance a private property via banks or other financial institutions. You cannot refinance your private property with a HDB concessionary loan. When you refinance your mortgage, you will be moving from one bank to another – and the process involves legal and lawyers' fees which you negotiate a subsidy (from the bank offering you a new home loan) for. Sounds tedious? Our mortgage specialists can help you find a preferred refinance mortgage package with legal subsidies.

Check out the latest refinance mortgage loan interest rates for private properties below:

Refinance HDB Loan in Singapore

Looking to refinance your HDB housing loan? You’re either switching from one bank to another bank, or converting an HDB loan package to a bank loan package. If you’re doing the latter, do know that once you opt out of your existing HDB home loan, you won’t be able to refinance with HDB anymore. Decide wisely and make sure that you’re refinancing to lower your home loan interest rate.

To refinance your HDB loan, here’s an overview of the best HDB home loan rates from major banks in Singapore:

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Why Should I Refinance My Mortgage Home Loan?

What Is Refinancing?

What does it mean to refinance a mortgage home loan? When you refinance your home loan, it means you are switching from your current home loan to another bank's home loan. Usually when people refinance, they are pursuing lower mortgage interest rates so they enjoy some savings in interests, or to get an even higher loan amount so that they can get excess cash (known as cash-out refinancing). Do not mistake repricing for refinancing – repricing means you stay with the same bank but negotiate for a better interest rate, while refinancing involves you moving from bank to bank with legal fees involved.

Lower Monthly Payments

When refinancing your home loan, always get a lower interest rate to lower your monthly instalments. Your refinancing window starts 4 months before your existing home loan renews. If you don't refinance but decide to stay with your current home loan, note that mortgage interest rates will always increase – and you’ll end up paying higher monthly instalments.

Cash Out Refinancing

If you own a private property, you can make use of your property as collateral to take out a home equity loan. Usually, you can get up to 60% or 75% of your property's value (minus the remaining loan amount and any CPF used for the same property) in cash. You can then use the cash to consolidate debt, or for investment purposes. However, avoid taking the maximum cash-out allowed to give leeway for changes in your property's valuation.

Lower Interest Rates

Another reason why people refinance their home loans is to get better interest rates – by converting from a fixed interest rate to a floating interest rate (or vice versa). With a fixed rate package, the interest rate is locked in for a certain period of time (ranging from 1 to 5 years). Since it’s more stable, the interest rate is slightly higher compared to a floating rate package. If you hold a floating rate package, the interest rate fluctuates depending on what your interest rate is pegged to – SIBOR or the bank's fixed deposit interest rates. These floating rate packages may or may not have a lock-in period. Sometimes, home buyers who are tied to a floating rate switch to a fixed rate package so they can better plan and manage their long-term finances.

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When Should I Refinance My Mortgage Home Loan?

Refinance At The Right Time

Lock-in Period Ending

Home loan refinancing should always be a strategic move. Banks require you to give them a 3-month notice before you refinance and switch to another bank – that's why it’s important to know when your lock-in period will end. Plan ahead and start the refinancing process at least 4 months before the new interest rate cycle kicks in. Also, it's possible to refinance mid-way through your lock-in period, but you'll incur a penalty fee.

Extend Loan Term

Some home buyers refinance to improve their cash flow by extending their loan period. However, this is only possible if you have not maxed out your current home loan tenure. Whether you’re refinancing your HDB or private property, you can extend your loan tenure for a maximum of 35 years, or until you reach the age of 75. The number of years you've served your current loan will also be deducted from your extended maximum loan tenure.

How Do I Refinance My Home Loan in Singapore?

How does home loan and mortgage refinancing work in Singapore? Refinancing a mortgage means to switch from one bank to another bank's mortgage loan, usually in pursuit of lower interest rates, higher loan amount, and shorter or longer loan tenure (to match your financial goals). You will also need to engage a lawyer to draft legal refinancing documents on your behalf.

Step 1

Know your current home loan

It’s good that you’re thinking about refinancing your home loan. To make the process easier, you should have the information about your current home loan ready. This includes the outstanding loan balance, monthly instalments, loan tenure, fees and charges, interest rates, and early repayment penalties.

Step 2

Compare the best home loan for refinancing

You'll then need to compare all the available refinancing mortgage loan interest rates that the banks are currently offering. Compare them against one another, and against your current home loan to make sure you're getting the best deal. If that's too tedious, simply do our home loan quiz and we'll compare the best refinancing home loans for you.

Step 3

Speak to a mortgage specialist

Our mortgage specialist team will more than happy to give you unbiased advice on refinancing home loan in Singapore. We’ll answer your questions, and explain to you the hidden costs involved when refinancing to another home loan – including legal fees, valuation fees, and a penalty fee of up to 1.5% of your current home loan if you refinance during your lock-in period.

Step 4

Legal subsidies

You should look out for banks which offer subsidies for your mortgage refinancing legal and valuation fees – especially when there’s a significant amount of money involved. Otherwise, the S$2,000 to S$3,000 incurred in lawyer fees may negate any savings you enjoy from a lower interest rate. Our mortgage specialists will be able to find you refinancing home loan packages with legal subsidies.

Step 5

Lawyers on legal panels

Which lawyer should I engage to help me with my mortgage refinancing? You can't just approach any lawyer. Let's say you are refinancing to a DBS home loan, your lawyer of choice has to be in the bank's list of preferred mortgage lawyers (aka on the legal panel). If you don't have a mortgage lawyer, fret not. The bank offering you a refinance mortgage will usually send you a list of their preferred lawyers as well.

Step 6

Apply for your refinance loan

Finally, with the help of your lawyer (and legal subsidies), apply for your new home loan. Make sure you start your application at least 4 months before your current home loan lock-in period ends. You need to factor enough time for the application process, and the 3-month notice you need to give your current bank. It's even better if you can start earlier to address issues that may arise in the process of refinancing.

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Why Get Your Home Loan Through Us?

Simple, Fast, Convenient

Leave your home loan research to us and we will break it down for you in simple terms. Our Mortgage Specialist will contact you directly so you can save time for other important things in life.

We compare so you get better deals

Feeling so spoilt for choice you cannot decide? Settling for the first option is like being forced to marry the first person you come across on a dating app. Don’t feel pressured. We compare across all banks in Singapore to ensure that you get the best deals.

Most importantly it's free!

Our service to you is free. But, of course we are not doing this for charity! All banks pay us a standard referral fee for our services and our awesome job done. We don’t take sides or give biased advice.

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5 Questions to Ask Yourself Before Refinancing Home Loans in Singapore

Refinancing vs Repricing: What's the Difference?

How to Refinance Your Home Loan in Singapore

What does a lock-in period mean?: A lock-in period refers to the minimum number of years that you are required to stay with the bank for a particular package. If you decide to refinance, repay partially, or repay fully, there is likely to be a penalty imposed.
Which is the best home loan currently?: Home loans packages are changing ever so rapidly during this period of time when the interest rates environment is volatile. This means that there is no one bank that will constantly offer the best package. Comparison is where our expertise lies. Use our website to compare the different packages for you in a systematic and simple manner. On top of that, our advisers will also drop you a call to further clarify your doubts and refer you to the bank that best suits your needs.
What is the best home loan interest rate in Singapore?: The best home loan interest rate is subjective. A fixed interest rate package is usually higher since you are paying a premium for stability. This is viewed as the best package for someone who is risk-averse but might not be the best for someone who is willing to take a little more risk and enjoy more savings with a floating rate package. Compare different home loan packages using MoneySmart’s website and contact our mortgage specialists. They will clarify your doubts and refer you to the home loan that best suits your needs.
Is it worth it to refinance my housing loan?: Refinancing is the key to saving money when it comes to a housing loan. To ensure that you are not paying more than you should for your home loan, you need to refinance every 2 to 3 years. This is because most home loan packages will have a spike in interest rates after the lock-in period is over. This is especially true for a fixed-rate package. Also if you took up a floating rate with the bank 2 to 3 years ago, it is likely that you have encountered a few rounds of increment and are currently paying a much higher interest rate. This is when you can refinance to a new bank offering a better interest rate package. Or, if you foresee that the interest rate will continue rising, you can refinance to a fixed rate to hedge against that risk.
What is the cost when it comes to refinancing your home loan?: For refinancing, typically there are only 2 costs involved.

Legal fees payable directly to the law firm

Valuation fee payable directly to the bank

Typically, as long as your remaining loan is $300K and above for HDB and $400K and above for private property, banks will provide full legal subsidy and some will even subsidise part of your valuation fee. This means that the total cost usually is minimal and definitely cheaper than repricing.
What is the difference between refinancing and repricing?: Repricing refers to changing to a different interest rate package within the same bank. For repricing, there is usually a repricing fee of between $800 and $1000. Also for existing customers changing to another package, the package offered by the current bank will usually be worse off or at best the same as what they offer for new to bank customers. Refinancing is to change to a different bank and to take up a new housing loan package from them. Banks will usually attract new customers by offering subsidies to keep the cost low for switching and their interest rate packages are usually more attractive. Therefore as long as you are eligible for the subsidies, it definitely is worthwhile to refinance.
Should I go to the bank directly or go with MoneySmart?: MoneySmart is a one-stop solution when it comes to a housing loan. We are able to offer packages from all the banks in Singapore as we are partnered with all of them. After receiving our advice, mortgage specialists from the specific bank you choose will reach out to you directly to assist you with the loan application. The benefit of using MoneySmart is that you don’t need to walk into every individual branch from different banks and you do not need to wait for days for a specialist from the bank to give you a call. The packages that you get through MoneySmart is either the same as what the banks are offering you or even lower. Best of all, our service is free. The banks will be the ones paying us a standard referral fee so we are able to provide unbiased advice and recommendations to you.
Does refinancing hurt credit score?: While refinancing your home loan could cause a slight dip in your credit score, you shouldn’t worry as this effect is only temporary and negligible. Rest assured, your credit score will bounce back to normal.
How often can I refinance a loan?: There’s no limit as to how many times you can refinance your home loan, so long as you save on interest rates. However, you should be able to plan it properly to avoid paying the penalty fee.