When should I start the refinancing process in Singapore?

Start 3–4 months before your lock-in period expires. Most banks need 2–3 months to process and disburse a refinancing application.

What is the difference between repricing and refinancing?

Repricing is switching to a new rate package with your existing bank -- cheaper and faster but limited to that bank's packages. Refinancing moves to a new bank for better rates, with legal fees but often subsidised.

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Refinancing Your Singapore Mortgage in 2026: The Lock-In Escape Playbook

By Winfred Quek · CEA R073319H · 9-minute read · Last reviewed May 2026

Quick answer: Start refinancing 3–4 months before your lock-in expires. At a $800,000 outstanding loan, moving from 2.5% to 1.5% saves approximately $8,000 per year in interest. Legal fees of $2,000–$3,000 are typically subsidised by the new bank. Break-even on refinancing costs is usually within 4–6 months of the new rate taking effect.

Facts verified: May 2026 · Sources linked below

Real Example: Refinancing a $750,000 Loan After 2-Year Fixed Expires

Detail	Figure
Profile	SC homeowner, $750,000 outstanding loan, 20 years remaining, 2-year fixed at 3.5% taken in 2023
Current monthly instalment (3.5%)	~$4,350/month
New 2-year fixed rate available (May 2026)	1.55% (DBS/OCBC)
New monthly instalment (1.55%)	~$3,620/month
Monthly saving	~$730/month
Annual saving	~$8,760/year
Refinancing legal fees	$2,800 (subsidised $2,000 by new bank; net cost $800)
Break-even on refinancing cost	~1.3 months
Saving over 2-year fixed period	~$17,520 (after legal fees: ~$16,720)
Action taken	Client applied for IPA 4 months before lock-in expiry; switched on expiry date with zero penalty
Outcome	$730/month freed up; used to accelerate downpayment savings for investment property purchase

Illustrative example based on May 2026 rates. Actual savings depend on your outstanding loan, remaining tenure, and exact rate offered. Always get live quotes from 2–3 banks.

Why 2026 Is a Good Year to Refinance

Singapore's best 3-year fixed mortgage rates in 2026 are around 1.5% per annum. SORA-linked floating rates are in the 1.4–1.6% range. Borrowers who took 3-year fixed packages in 2021 at 1.2–1.4% are coming off their lock-in into a slightly higher but still historically low rate environment. Borrowers who took 2-year packages in 2023 at 3.5–4% are now well-positioned to refinance down materially.

Repricing vs Refinancing

These are often confused but are meaningfully different:

Repricing: You stay with your current bank and switch to a new rate package. Process takes 1–2 weeks. Legal fees are minimal or nil. But you are limited to that bank's available packages you cannot shop the full market. Typical repricing fee: $200–$500.

Refinancing: You move your mortgage to a new bank entirely. Full conveyancing process, new mortgage documentation. Takes 2–3 months. Legal fees $2,000–$3,500 but often partially or fully subsidised by the new bank as an acquisition incentive. You have access to every bank's rates.

Repricing is faster and cheaper in absolute fee terms. Refinancing usually offers a better rate because you are negotiating with competitive offers from multiple banks. For a large loan balance (above $500,000), the rate difference between repricing and refinancing often justifies the extra work of refinancing.

What to Compare Beyond the Headline Rate

The advertised rate is one number among several you must evaluate:

Lock-in period and penalty: Typically 1.5–2% of outstanding loan if you break lock-in. A low rate with a 3-year lock-in may be a liability if you plan to sell within 3 years.
Legal fee subsidy: Some banks offer up to $2,000 in legal fee cashback. Factor this into the total cost of switching.
Fire insurance requirement: Banks require mandatory fire insurance on the property. Rates differ by insurer (bank's panel vs your own).
Mortgage Reducing Term Assurance (MRTA): Typically optional but some banks package it. Do not conflate MRTA cost with mortgage cost.
TDSR re-assessment: When refinancing, the bank will re-assess your TDSR. If your income has changed or you have additional loans, this could limit your refinancing amount.

Savings Calculation: $800,000 Loan, 20 Years Remaining

Scenario	Rate	Monthly Instalment	Annual Interest Cost
Current package (expiring)	2.5%	~$4,239	~$19,600
Repriced with same bank	1.8%	~$4,012	~$13,800
Refinanced to new bank	1.5%	~$3,863	~$11,600
Annual saving (vs 2.5%)			~$8,000/yr (refinanced)
Break-even on $2,500 legal fees			~3.7 months

The 6-Step Refinancing Process

Step 1 Confirm lock-in expiry date: Check your existing mortgage letter or call your bank. Note the exact date. Start Step 2 at least 4 months before this date.

Step 2 Get in-principle approvals (IPA) from 2–3 banks: Submit income documents (3 months payslips, CPF statement, latest NOA, 3 months bank statements) to multiple banks simultaneously. Compare the Letter of Offer terms carefully.

Step 3 Select the best offer: Compare rate, lock-in term, legal subsidy, and any other fees. Negotiate banks will often match a competitor's rate or improve the legal fee subsidy to win the loan.

Step 4 Appoint law firm from the new bank's panel: The new bank provides a panel of solicitors. The law firm handles the discharge of the old mortgage and registration of the new one. Timeline: 6–8 weeks from appointment.

Step 5 Sign new loan documentation: Review and sign the new Letter of Offer and mortgage documents with the law firm. Confirm the disbursement date.

Step 6 Old loan discharged, new loan active: New bank pays off the old bank. Your monthly instalment switches to the new bank from the next payment cycle.

HDB Loan Refinancing to Bank Loan

If you are currently on an HDB concessionary loan (2.6% p.a.) and want to refinance to a bank loan (currently ~1.5%), the process is possible but carries one irreversible condition: once you refinance from HDB loan to a bank loan, you cannot refinance back to HDB. The HDB concessionary rate offer is a one-time entitlement. Before switching, confirm you are comfortable giving up the HDB loan's flexibility (no lock-in, can top up principal anytime).

Cash-Out Refinancing

Cash-out refinancing allows you to borrow more than your outstanding loan amount when refinancing extracting the equity built up in the property as cash. This is subject to the standard LTV limits (75% of property value for bank loans) and full TDSR assessment. The extracted cash is typically used for investment, renovation, or bridging for another property purchase. Note that cash-out increases your total outstanding debt and monthly obligations.

Don't refinance if selling within 3 years: If you plan to sell the property within the lock-in period of your new loan, the break fee (typically 1.5% of outstanding loan) will eliminate your interest savings. If your exit horizon is under 3 years, consider a shorter lock-in package or no-lock-in package, even at a slightly higher rate.

Decision Guide: Refinance or Wait?

Situation	Recommendation
Lock-in expired, rate now 2.5%+	Refinance immediately every month at 2.5% vs 1.5% costs ~$670/month on $800K
Lock-in expires in 4 months	Start now apply for IPA, be ready to switch on expiry
Lock-in expires in 12+ months	Wait unless break fee < 6 months of interest savings
Planning to sell in under 2 years	Reprice with same bank (no lock-in) rather than refinance
HDB loan at 2.6%	Refinance to bank if you plan to hold long-term; skip if selling in 5 years