Mortgage Refinancing Calculator Singapore 2026
Find out if refinancing your home loan is worth it — free break-even analysis with real-time results in SGD.
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Results are estimates only. Actual savings depend on your loan package terms. Consult your bank for exact figures.
Understanding Mortgage Refinancing for Singapore Homeowners
Mortgage refinancing — the process of switching your existing home loan to a new package, either with your current bank (repricing) or a different lender (refinancing) — is one of the highest-impact financial decisions a Singapore homeowner can make. With the average outstanding HDB loan balance at approximately S$200,000–S$400,000 and private property loans often exceeding S$800,000, even a 0.50% reduction in interest rate can translate to tens of thousands of dollars in savings over a 20-year tenure. As at Q3 2026, SORA-linked floating rate packages in Singapore typically range from 2.50% to 3.20% p.a., while fixed-rate packages are priced between 2.60% and 3.50% p.a. depending on the bank and lock-in period. This calculator helps you determine whether the monthly savings from a lower rate outweigh the upfront refinancing costs — giving you a clear break-even period in months.
Not financial advice. All figures are for educational reference only. Rates and fees vary by lender. Data as at Q3 2026 unless noted.
What Are the Costs of Refinancing in Singapore?
Refinancing in Singapore typically involves two main cost components. First, legal fees for engaging a conveyancing lawyer to handle the transfer of mortgage: these range from S$1,800 to S$3,000 for HDB loans and S$2,500 to S$4,500 for private property, though many banks offer legal fee subsidies as part of promotional packages. Second, a property valuation fee of S$300 to S$700 for private property (HDB valuations are generally waived). Some banks also charge a processing fee of S$500 to S$1,000, though this is increasingly rare in a competitive market. Total out-of-pocket cost is typically S$2,500 to S$5,000 before subsidies. Always factor in any clawback period — if your current bank requires you to stay for a set period, breaking out early may trigger a clawback of earlier subsidies.
Repricing vs Refinancing: What's the Difference?
Repricing means staying with your current bank but switching to a new loan package — usually lower cost (S$100–S$500 admin fee only) but offers a narrower range of rates since you're limited to that bank's offerings. Refinancing means moving to a new bank entirely, which typically unlocks sharper rates and cashback offers but incurs full legal and valuation costs. In Singapore, the general rule of thumb is: if the rate difference exceeds 0.30% p.a. and your outstanding loan is above S$500,000, refinancing to a new bank usually makes financial sense. Below that threshold, repricing is often more cost-effective. Our calculator applies to both scenarios — simply enter S$0 for refinancing cost if you're repricing.
How to Use This Mortgage Refinancing Calculator
- Outstanding Loan Amount: Enter the current balance on your mortgage — not the original loan amount. You can find this on your monthly bank statement or CPF statement (for the portion paid via CPF OA).
- Remaining Tenure: The number of years left on your loan. Check your latest bank statement or the original loan agreement for the outstanding tenure.
- Current Interest Rate: Your existing effective interest rate p.a. For SORA-linked packages, use the current all-in rate (SORA + spread). For fixed rates, use the contractual rate.
- New Interest Rate: The rate offered by the new package or lender. Use the best rate you've been quoted, not promotional teaser rates that apply only in year 1.
- Refinancing Cost: Total out-of-pocket cost including legal fees, valuation, and any other charges. Subtract any cashback or legal subsidy offered by the new bank.
The calculator instantly shows your monthly savings, break-even period (months to recover upfront costs), total interest saved over the remaining tenure, and net savings after all costs.
Pro tip: Combine this calculator with our Retirement Planning Calculator to see how reducing your mortgage costs faster accelerates your retirement timeline.
Contents — Click to Expand
What Is Mortgage Refinancing in Singapore?
Mortgage refinancing is the process of replacing your existing home loan with a new one — either from the same bank (called repricing) or a different lender — to take advantage of a lower interest rate, better loan features, or both. In Singapore, the practice is extremely common: with over 80% of resident households owning their home and most having an outstanding mortgage, even a modest rate reduction can save tens of thousands of dollars over the remaining loan tenure.
Singapore's home loan market offers several interest rate structures. Fixed-rate packages lock in a rate for a set period (typically 2–5 years) before resetting to a floating rate. SORA-linked packages (SORA stands for Singapore Overnight Rate Average, the benchmark that replaced SIBOR in 2024) float with prevailing overnight rates plus a bank-set spread. As at Q3 2026, the 1-month compounded SORA sits at approximately 2.48% p.a., with bank spreads of 0.30%–0.80% p.a. added on top. Unlike many other countries, Singapore borrowers are not charged a government mortgage tax, and there is no prepayment penalty after the lock-in period ends — making refinancing relatively friction-free once you're out of the lock-in window.
The best time to refinance is typically 3–6 months before your current loan's lock-in period expires, giving you time to shop around, submit applications, and complete the legal transfer without incurring early termination penalties. Banks like DBS, OCBC, UOB, Maybank, and Standard Chartered compete actively for mortgage business and regularly run promotional packages with cashback offers and legal subsidies.
How the Break-Even Calculation Works: The Maths Behind Refinancing
The core logic of mortgage refinancing analysis is simple: compare the monthly savings from a lower interest rate against the upfront costs of switching, then determine how many months it takes to break even. Our calculator uses the standard mortgage amortisation formula to compute your current and new monthly instalments:
Monthly Instalment = P × [r(1+r)ⁿ] / [(1+r)ⁿ - 1]
Where: P = outstanding principal, r = monthly interest rate, n = remaining months
For example: An outstanding loan of S$600,000 over 20 years at 3.50% p.a. yields a monthly instalment of S$3,480. Refinancing to 2.75% p.a. drops this to S$3,268 — a monthly saving of S$212. With S$3,500 in refinancing costs, the break-even point is just 17 months (S$3,500 ÷ S$212). Over the full 20-year tenure, total interest savings reach S$50,880 — S$47,380 net of refinancing costs. That's a strong case for refinancing.
One important nuance: these calculations assume you maintain the same monthly instalment after refinancing, which accelerates loan repayment. Alternatively, you could keep your instalment the same as the lower-rate payment and enjoy the monthly cash flow benefit. Both approaches have merit depending on your financial goals — faster debt elimination vs more investable cash each month. For HDB flat owners using CPF OA to service the loan, note that CPF accrued interest continues to accumulate on amounts withdrawn from your OA regardless of which bank holds the mortgage.
Refinancing vs Repricing in Singapore: When Each Makes Sense
The choice between refinancing (switching banks) and repricing (staying with your current bank at a new rate) comes down to the size of the rate difference and your outstanding loan amount. Here's a practical comparison:
| Factor | Repricing | Refinancing |
|---|---|---|
| Cost | S$100–S$500 | S$2,500–S$5,000 |
| Processing time | 2–4 weeks | 6–10 weeks |
| Rate options | Limited to your bank | Full market access |
| Cashback offers | Rare | Common (S$1,000–S$3,000) |
| Best for | Small loan balances, tight timelines | Loans > S$500k, rate diff > 0.30% |
As a general rule, mortgage brokers and financial advisors in Singapore recommend refinancing every 2–3 years to stay on the most competitive package. Your bank will rarely proactively offer you a better rate — it's up to you to shop around. Free mortgage comparison platforms like MoneySmart, PropertyGuru Finance, and Redbrick Mortgage Advisory (all MAS-licensed) can help you compare packages across all major banks.
Best Banks for Home Loan Refinancing in Singapore (2026)
The Singapore mortgage market is dominated by the three local banks — DBS, OCBC, and UOB — alongside regional and international players like Maybank, Standard Chartered, HSBC, and Citibank. Each typically offers both fixed and SORA-linked floating packages. As at Q3 2026, competitive refinancing packages include fixed rates starting at 2.60%–2.90% p.a. for 2-year lock-in periods, and SORA + 0.30%–0.50% p.a. for floating packages.
When evaluating offers, look beyond the headline rate. Consider: (1) the lock-in period and what happens at the end of it; (2) legal fee subsidies — some banks cover up to S$2,000 in legal costs; (3) cashback offers, which effectively reduce your break-even period; (4) whether the rate is fixed for just one year (a "teaser" rate) or genuinely over the lock-in period; and (5) prepayment flexibility if you plan to make lump-sum repayments using funds from your Endowus portfolio or year-end bonuses.
If you're investing the monthly savings from refinancing, platforms like Syfe and FSMOne make it easy to deploy small monthly amounts into diversified portfolios — effectively turning your refinancing savings into a compounding investment. Pair this with our DCA Investment Calculator to model the long-term impact.
Singapore-Specific Rules: Lock-In Periods, Clawback & TDSR
Before refinancing, Singapore homeowners must navigate several local regulatory and contractual rules. The most important is the lock-in period: most home loan packages come with a 2–3 year lock-in during which early repayment (including refinancing) triggers a penalty of 1.5%–2.0% of the outstanding loan amount. Always check if you're still within the lock-in window before initiating refinancing. You can typically find this in your loan agreement or by calling your bank's mortgage hotline.
The clawback clause is related but distinct: if your bank gave you subsidies (legal fee reimbursement, cashback) when you first took the loan, refinancing within the clawback period (usually equivalent to the lock-in period) requires you to repay those subsidies. Net the clawback amount against your refinancing savings to get a true picture of the cost.
Singapore's Total Debt Servicing Ratio (TDSR) framework, introduced by MAS in 2013 and tightened in 2022, caps your total monthly debt obligations at 55% of gross monthly income. Even for refinancing (not a new purchase), your new loan must comply with TDSR. For HDB flat owners, the Mortgage Servicing Ratio (MSR) imposes a tighter 30% cap on HDB loan instalments relative to income. Our TDSR & MSR Calculator can help you check compliance before you apply. Note also that for properties held in a company structure, the Additional Conveyance Duty (ACD) rules may apply — consult a tax advisor if relevant.
How Refinancing Frees Up Cash for Investing and Retirement
Beyond the direct interest savings, mortgage refinancing has a powerful indirect benefit for Singapore investors: it frees up monthly cash flow that can be redirected into wealth-building assets. Consider a homeowner who refinances a S$600,000 loan from 3.50% to 2.75% p.a., saving S$212 per month. Invested monthly into a low-cost index ETF like VWRA or IWDA at an assumed 7% p.a. annualised return over 15 years, that S$212 monthly contribution compounds to approximately S$68,000 — nearly doubling the direct interest savings of S$50,880.
This "refinance and invest the difference" strategy is especially powerful for Singapore investors who have already maximised their CPF SA (now RA post-55) contributions and SRS allowances. For investors building a dividend income stream through S-REITs, the freed-up monthly cash can be deployed into distributions-paying REITs tracked on our Dividend Portfolio Yield Calculator. Over a 20-year horizon, the combination of lower mortgage costs and consistent investment of the savings can meaningfully accelerate your path to financial independence — pair this analysis with our Retirement Planning Calculator to see the full picture. For more on building passive income in Singapore, read our Passive Income Guide 2026.
Frequently Asked Questions
How do I know if I should refinance my mortgage in Singapore?
The primary test is the break-even period: if your monthly savings cover your total refinancing costs within 12–24 months, refinancing is almost always worth it for a loan with 5+ years remaining. As a rough rule of thumb, if the interest rate difference is ≥0.30% p.a. and your outstanding loan balance is ≥S$400,000, the numbers typically work. Use this calculator to check your specific situation.
How much does it cost to refinance a home loan in Singapore?
Total refinancing costs in Singapore typically range from S$2,500 to S$5,000. This includes legal fees (S$1,800–S$4,000 depending on property type), property valuation (S$300–S$700 for private property; usually waived for HDB), and minor admin charges. Many banks offset these costs with legal subsidies or cashback offers of S$1,000–S$3,000, reducing your net outlay significantly.
When is the best time to refinance my Singapore home loan?
The ideal window is 3–6 months before your current lock-in period expires. Starting early gives you time to compare packages, submit applications, and complete the legal transfer without rushing — the entire process typically takes 6–10 weeks. Avoid initiating refinancing while still within the lock-in period, as early termination penalties (usually 1.5%–2.0% of outstanding loan) can wipe out years of interest savings.
What is the difference between refinancing and repricing in Singapore?
Repricing means switching to a new loan package within your current bank — lower cost (S$100–S$500) and faster (2–4 weeks) but limited to your bank's offerings. Refinancing means moving to a new lender entirely — higher cost (S$2,500–S$5,000) but access to the full market and often sharper rates plus cashback. For small outstanding balances (under S$400,000) or if you're in a hurry, repricing may be more practical.
Can I use CPF to pay for refinancing costs in Singapore?
No — refinancing costs such as legal fees and valuation fees are out-of-pocket cash expenses and cannot be paid using CPF OA funds. However, your new mortgage instalment can continue to be serviced via CPF OA (for eligible properties) just as before. Note that refinancing does not reset or affect the CPF accrued interest clock — the accrued interest already accumulated on CPF OA amounts used for the property continues to compound regardless of which bank holds the mortgage.
What interest rate should I use in the mortgage refinancing calculator?
For your current rate, use the all-in effective rate on your latest bank statement. For SORA-linked packages, this is typically the current 1-month compounded SORA (approximately 2.48% p.a. as at Q3 2026) plus your bank's spread. For your new rate, use the best rate you've been genuinely quoted — not a teaser rate that only applies in the first year of a 3-year lock-in package. Using the year-1 teaser rate will significantly overstate savings.
Does refinancing affect my TDSR or MSR eligibility in Singapore?
Yes. Even for refinancing an existing loan (not a new purchase), MAS requires your new loan to comply with TDSR (55% of gross monthly income) and, for HDB flats, MSR (30% of gross monthly income). If your income has decreased since you first took the loan, you may find you no longer qualify for the full outstanding loan amount under TDSR, which can complicate refinancing. Check your TDSR compliance using our TDSR & MSR Calculator.
How does mortgage refinancing affect my retirement planning in Singapore?
Refinancing to a lower rate reduces your monthly housing cost, which has a compounding effect on retirement readiness. First, it frees up monthly cash flow for investing in CPF, SRS, or market investments. Second, if you maintain your previous (higher) instalment, the extra amount reduces principal faster, shortening your loan tenure and eliminating mortgage payments earlier in retirement. Both strategies are powerful — use our Retirement Planning Calculator to model the impact of your specific scenario.
Which Singapore bank offers the best mortgage refinancing rates in 2026?
As at Q3 2026, competitive refinancing packages are available from DBS, OCBC, UOB, Maybank, and Standard Chartered, with fixed rates starting from approximately 2.60% p.a. for 2-year lock-in packages. Rather than committing to any single bank, use a free mortgage broker (MoneySmart, PropertyGuru Finance, Redbrick) to compare real-time offers across all lenders simultaneously. Rates change frequently and what was best last quarter may not be today.
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