Refinance Home Loan Singapore 2023: Best Rates & Rewards

Ideally, 4 months before the end of your lock-in period. Before that, you can start keeping an eye on the latest fixed and floating housing loan rates that are consistently updated on our website. In fact, once you reach out to us, you’ll always be the first to know beforehand if there’s a better bank home loan package launching in 3 days’ time.

While you can enjoy better deals through refinancing – which means to change your current home loan to an entirely different bank – repricing can offer the same benefits but within the same bank. And at times, your loan can be switched for free under repricing. To understand which works better for your situation, you may wish to discuss with a professional before deciding.

Yes, definitely! It would make sense to prepay your bank mortgage loan early if you have just the right amount to pay it off. However, there are certain situations where it may not be the best choice. To learn in detail, we provide more insights in our blog. Alternatively, wait for the right time to refinance your home loan and enjoy more attractive perks with DollarBack Mortgage in the process.

Your credit score plays a crucial role in determining your eligibility for a home loan. Banks view it as an indicator of your reliability as a borrower. To increase your chances of loan approval, it’s ideal to have a high credit rating. In general, a credit score of no worse than BB is required. Having a good credit score not only improves your chances of approval but may also lead to a higher loan amount and preferential interest rates.

For most loans in Singapore, including home loans, there are minimum income requirements. Single borrowers typically need to have a minimum annual income of $30,000, while if there’s a co-borrower, the minimum required income is $36,000 per annum.

Additionally, HDB loans have specific maximum income ceilings. The combined monthly income for families cannot exceed $14,000, $21,000 for extended families, and $7,000 for singles.

The loan-to-value (LTV) ratio is a significant factor in determining your eligibility for a refinance home loan. As you pay down your loan and the value of your home increases over time, the LTV ratio decreases. A lower LTV ratio improves your chances of refinancing your home loan.

Self-employed individuals or those without a regular income can still be eligible for a refinance home loan. However, they must demonstrate their ability to service monthly instalments. Each bank has specific criterias for assessing the eligibility of self-employed borrowers.

Typically, the approval process for refinancing takes around 3 to 5 working days. Once the letter of offer is signed with the bank, the conveyancing law firm initiates a notice period of 2 to 3 months.

When you refinance a home loan, there are typically two costs involved:

Legal fees payable directly to the law firm.

Valuation fee payable directly to the bank.

Banks usually provide full legal subsidies and, in some cases, partially subsidise the valuation fee if your remaining loan amount is $300,000 and above for HDB properties, or $400,000 and above for private properties. These subsidies make the total cost of refinancing minimal and in certain situations, more affordable than repricing.

Yes, it is possible but it would be a slightly more complex process. It’s advisable to consult with a mortgage specialist who can assess your specific situation and provide guidance accordingly.

Determining whether a fixed rate or floating rate is superior is a challenging task. It is essential to consider how interest rates are expected to evolve in the next two to five years and assess the impact on your overall expenses. Ultimately, your decision should be based on your risk tolerance and financial circumstances.

Certain homeowners may prioritise the convenience of financial planning and peace of mind, even if it means paying a premium for a fixed rate. Conversely, financially savvy individuals might prefer to monitor interest rate fluctuations and potentially benefit from long-term savings associated with a floating rate.

Early repayment or prepayment penalties can take different forms, but the most prevalent ones include:

Partial or full redemption of the home loan through a lump sum cash or CPF repayment.

Selling the property within the lock-in period.

Mortgage clawback penalty for any subsidies received.

If you have previously been bankrupt, there is usually a waiting period of five to seven years after receiving your official letter of discharge before you can apply for a home loan. Each bank has its own eligibility criteria regarding income requirements, age limitations, and loan-to-value ratio, which will also be considered.

The valuation of your property directly affects the loan amount you can obtain. If the valuation of your property decreases during the refinancing process, the loan quantum may decrease. This means that the maximum amount you can borrow from the bank will be reduced accordingly.

For HDB properties, refinancing fees can be avoided if your outstanding mortgage is more than $250,000. Many banks in Singapore provide full subsidies for all refinancing fees related to HDB properties.

For private properties, most banks offer cash subsidies to offset the refinancing fees, provided your remaining home loan is more than $450,000. It’s important to note that whenever a bank provides subsidies or cash rewards, a clawback period of 3 years applies. This means that if you switch banks or pay off the loan within 3 years, you may need to repay the subsidies or rewards in full, without proration. However, there are specific situations where you may be able to avoid the clawback penalty, but these circumstances are rare and require careful consideration.