What happens when my Singapore mortgage lock-in expires?

When your mortgage lock-in period ends, your loan automatically moves to the bank's prevailing board rate -- typically 2.5–3% -- unless you take action. This is significantly higher than the promotional rate you were on. You should apply to reprice (switch to a new package with the same bank) or refinance (switch to a new bank) 3–4 months before expiry to avoid the board rate penalty.

What is the best mortgage rate in Singapore in 2026?

In May 2026, the best fixed mortgage rates from major Singapore banks are around 1.5% for a 3-year fixed package. The best floating (SORA-based) rates are approximately 1.4–1.6% effective, based on 3-month compounded SORA of ~0.8% plus a bank spread of 0.6–0.8%. Rates vary by bank, loan size, and package terms -- always compare at least 3 banks before deciding.

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Fixed vs Floating Mortgage 2026: What Happens When Your Lock-In Expires

By Winfred Quek · CEA R073319H · 8-minute read · Last reviewed May 2026

Quick answer: When your fixed-rate lock-in expires, your mortgage automatically moves to the bank's board rate -- typically 2.5–3% -- unless you act. At a $800K outstanding loan, failing to refinance costs approximately $8,000–$12,000 in extra interest per year. In May 2026, the best fixed rates are around 1.5% (3-year) and floating SORA-based rates are approximately 1.4–1.6% effective. You should start the refinancing process 3–4 months before your lock-in expires.

Every Singapore mortgage has a lock-in period -- typically 2 or 3 years for fixed-rate packages, during which you cannot switch banks without paying a penalty (usually 1.5% of the outstanding loan). When that period ends, most homeowners do nothing. And that inaction costs them.

The bank's standard "board rate" -- what your loan defaults to post-lock-in -- is designed to be uncompetitive. It exists to capture the inertia of borrowers who do not reprice or refinance. In 2026, most major bank board rates sit at 2.5–3%, compared to promotional rates of 1.4–1.6%. On an $800K loan, that gap costs you $8,000–$12,000 a year in unnecessary interest.

How Singapore Mortgages Work: The Lock-In Mechanics

A typical Singapore home loan has three phases:

Phase 1 -- Lock-in period (Year 1–2 or 1–3): You are on the promotional rate (fixed or floating). Cannot switch banks without penalty. Bank is happy; you have low rates.

Phase 2 -- Board rate (post lock-in, if no action taken): Package automatically reprices to bank's board rate. Rates jump to 2.5–3%. Most borrowers do not notice immediately.

Phase 3 -- After repricing or refinancing: You move onto a new competitive package -- either with the same bank (repricing) or a new bank (refinancing). Rates return to promotional levels.

Fixed Rate vs Floating Rate: The 2026 Picture

Fixed Rate Packages (2026)

Singapore banks offer fixed-rate packages where the interest rate is locked for 2 or 3 years regardless of market movements. In May 2026, the best fixed rates from major banks (DBS, OCBC, UOB, Standard Chartered) are approximately:

2-year fixed: ~1.4% p.a.
3-year fixed: ~1.5% p.a.

Fixed rates offer certainty -- your monthly payment does not change for the lock-in period, making budgeting easier. The trade-off: if SORA falls further, you are locked in above the market rate.

Floating Rate Packages (SORA-based, 2026)

Since 2021, Singapore bank floating rate packages are pegged to SORA (Singapore Overnight Rate Average) rather than SIBOR. The 3-month compounded SORA rate in May 2026 is approximately 0.8%. Banks add a spread of 0.6–0.8%, giving an effective floating rate of approximately 1.4–1.6% p.a.

Floating rates can move up or down with the rate environment. In a falling-rate environment (as in 2026), a floating rate means you benefit immediately from rate cuts without waiting for a lock-in to expire. The risk: rates can also rise quickly if the global environment shifts.

Monthly Payment Comparison: $800K Loan

Rate Scenario	Rate p.a.	Monthly Payment (25yr)	Annual Interest Cost
Best 3-year fixed (2026)	1.5%	~$3,199	~$11,200
Best floating SORA (2026)	1.4%	~$3,147	~$10,500
Bank board rate (post lock-in, no action)	2.75%	~$3,686	~$20,900
Difference: board rate vs best fixed	+1.25%	+$487/month	+$9,700/year

Based on $800,000 outstanding loan over 25-year remaining tenure. Monthly payment and annual interest are approximations. Actual figures depend on amortisation schedule and loan balance at repricing date.

Repricing vs Refinancing: What's the Difference?

Repricing (Same Bank)

Repricing means switching to a new package within your existing bank. Advantages: no legal fees, faster process (typically 1–2 weeks), no new valuation required. Disadvantage: the bank's repricing packages are usually less competitive than what they offer to new customers. The bank knows you have switching costs, so they offer a rate slightly above their best promotional rate for new borrowers.

Refinancing (New Bank)

Refinancing means moving your loan to a completely new bank. The new bank typically offers their best promotional rates -- and often subsidises your legal fees to win your business. Legal fees for refinancing are typically $2,000–$3,000, but the new bank often provides a legal fee subsidy of $1,800–$2,500, bringing your out-of-pocket cost down to $0–$500.

Refinancing takes longer -- approximately 4–6 weeks from application to completion -- which is why you should start 3–4 months before your lock-in expires.

Do not wait until your lock-in expires to act. The process of applying, getting approval, and completing the legal documentation takes 4–6 weeks for refinancing. If you miss the window, you will spend 1–3 months on the board rate while waiting for the new package to kick in -- costing $800–$1,500 in unnecessary interest per month.

The Repricing vs Refinancing Decision Matrix

Factor	Reprice (Same Bank)	Refinance (New Bank)
Rate competitiveness	Moderate -- slightly above new customer rate	Best available -- new customer promotional rate
Legal fees	Nil	$2,000–$3,000 (often subsidised by new bank)
Processing time	1–2 weeks	4–6 weeks
Valuation required	Usually not	Yes -- new bank requires property valuation
Cash outlay	None	$0–$500 after legal subsidy
Best for	Small loan balance (<$300K), short remaining tenure, convenience priority	Loan balance >$500K, long remaining tenure, rate savings material

When to Fix vs Float in 2026

The fixed vs floating decision depends on your view of the interest rate environment and your personal risk tolerance:

Fix if: You want certainty for budgeting. You think rates will rise. You have a tight monthly cash flow and cannot absorb rate increases. A 3-year fixed at 1.5% gives you certainty through 2029.
Float if: You think SORA will stay low or fall further (likely in 2026 as the Fed continues easing). You are comfortable with rate volatility. Your cash flow has buffer to absorb a potential 0.3–0.5% rate movement.
Hybrid approach: Some borrowers split their loan -- fix a portion and float the remainder. This is available at some banks and provides partial rate certainty with partial benefit from rate falls.

Your Lock-In Expiry Action Plan

4 months before expiry: Check your mortgage statement to confirm the exact lock-in expiry date. Log into your bank's portal or call the mortgage hotline.

3 months before expiry: Get quotes from at least 3 banks. Use a mortgage broker to compare packages simultaneously. Check current SORA rate on MAS website. Evaluate repricing offer from your current bank.

2 months before expiry: Submit refinancing application to chosen bank (if refinancing). Engage conveyancing lawyer. New bank orders property valuation.

1 month before expiry: Sign loan documentation. Legal completion scheduled. New package takes effect from lock-in expiry date -- no gap on board rate.

Fixed vs Floating Mortgage 2026: What Happens When Your Lock-In Expires

Fixed vs Floating Mortgage 2026: What Happens When Your Lock-In Expires

How Singapore Mortgages Work: The Lock-In Mechanics

Fixed Rate vs Floating Rate: The 2026 Picture

Fixed Rate Packages (2026)

Floating Rate Packages (SORA-based, 2026)

Monthly Payment Comparison: $800K Loan

Repricing vs Refinancing: What's the Difference?

Repricing (Same Bank)

Refinancing (New Bank)

The Repricing vs Refinancing Decision Matrix

When to Fix vs Float in 2026

Your Lock-In Expiry Action Plan

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