Find the Best Refinance Home Loan Rates
Finding the best refinance home loan rate depends on two factors: identifying which bank is offering the most competitive package at any given moment, and switching at the optimal point in your loan cycle. Our specialists manage both on your behalf, at no cost to you. We compare refinancing rates across every major bank in Singapore, identify the packages that improve on publicly advertised rates, and time your switch so that no savings are left unclaimed. Beyond the lower rate itself, you stand to receive up to $2,500 in bank subsidies along with cash rewards of up to $3,300.
BE REWARDED
6,000+
Clients Served
SGD 2.1B+
Total Loan Value Facilitated
400+
5-Star Google Reviews
View Refinance Loan Rates From DBS, OCBC, UOB, & More…
Compare the Best Refinancing Rates
SORA Rate Today
Get Up to $3,300 in Rewards When You Apply Through DollarBack
What is Housing Loan
Refinancing?
HDB vs Private Property Refinancing
Benefits of Refinancing Mortgage Loan
When to Refinance
Am I Eligible to Refinance My Home Loan
What Does It Cost to Refinance
Why Use DollarBack Mortgage to Refinance?
Client Testimonials
The Refinance Housing Loan Process
Frequently Asked Questions
Related Services
If you are planning to refinance your HDB loan or bank home loan in Singapore, you can leave the research to our dedicated mortgage specialists at DollarBack Mortgage. With a curated selection of bank refinance home loan rates available at your fingertips, you can get access to the right package tailored to your needs.
SORA RATE TODAY
Stay updated on the dynamic landscape of mortgage loan rates with our real-time insights, including the latest updates on the SORA rate today. We keep you informed, ensuring you have the most up-to-date information to make confident decisions about your home loan, tailored to the ever-changing market conditions.
Source: MAS Website
SIBOR Updates As At
Get Up to $3,300 in Rewards When You Apply Through DollarBack
Refinancing: Promo Cash Reward + Legal Fee Subsidy / Rebate
Refinance through DollarBack Mortgage, and you’ll receive a cash reward of up to $3,300, depending on your loan amount from participating banks. On top of that, all banks provide a legal fee subsidy or rebate of $1,600 to $2,000 for HDB refinancing and $1,800 to $3,000 for private property refinancing.
Stack the two together, and your total benefit can reach up to $6,300 in cash rewards and rebates.
The reward applies to any refinancing package with a minimum loan of $300k taken from one of our 16 partner banks, and there are zero upfront fees to use our service.
* Subsidies & cash rewards is subject to a minimum loan and is provided by participating banks, which may be revised at any time
What Is Housing Loan Refinancing?
When you refinance a mortgage home loan, you switch from your current home loan in Singapore to a home loan with another bank. Homeowners typically refinance for one of two reasons: to secure a lower mortgage interest rate and reduce their overall interest expense, or to access a larger loan amount through cash-out refinancing. Refinancing should not be confused with repricing, and understanding the distinction can lead to meaningful savings.
Repricing means remaining with your existing bank and moving to one of its newer rate packages. It is the simpler of the two options, generally completed with a conversion fee of around $300 to $800 and limited paperwork, since no change of lender is involved. The trade-off is that banks tend to reserve their most competitive rates for new customers, so the package available to you as an existing borrower is seldom the strongest on the market.
Refinancing, by contrast, involves transferring your loan to a different bank entirely. While this requires more documentation and incurs legal fees, those fees are usually subsidised by the incoming bank, and the rate on offer is typically lower because banks compete most aggressively to win customers from their rivals.
As a general guide, repricing is the sensible choice when the difference between your current and new rate is marginal, or when you prefer to avoid the additional process. Refinancing becomes the stronger option when a competing bank’s package, together with its subsidies and our cash reward, clearly outweighs the cost of switching.
HDB vs Private Property Refinancing
Refinancing follows a different set of rules depending on the type of property you own, and applying the correct rules is central to a successful switch. The distinctions between a HDB and a private property refinance are outlined below.
HDB
If you remain on the HDB concessionary loan at 2.6%, it is important to understand that moving to a bank loan is irreversible: once you refinance to a bank, you cannot revert to the HDB loan at a later stage. If you are already on a bank loan for your HDB flat, however, refinancing to another bank is a straightforward process and frequently worthwhile.
For HDB refinancing, a home loan amount of $300,000 or more generally qualifies for a full legal subsidy, which covers the majority of your switching cost. Your monthly instalments can continue to be serviced through CPF, though we recommend confirming your available CPF balance and accrued interest beforehand to ensure the new repayment structure aligns comfortably with your finances.
Private Property
Private property owners have greater flexibility when refinancing. In addition to securing a lower rate, you may also unlock equity through cash-out refinancing, borrowing against your property up to a combined 75% of its current value after deducting your outstanding loan and any CPF utilised.
For private property refinancing, a home loan amount of $400,000 or more typically qualifies for a legal fee subsidy of up to $2,000, which helps offset the cost of switching. It is worth noting that all borrowing remains subject to the Total Debt Servicing Ratio (TDSR), so the bank will assess your existing financial commitments when determining your new loan or any cash-out amount.
Benefits of Refinancing Mortgage Loan
Lower Monthly Payments
By refinancing your home loan in Singapore, you can secure a lower interest rate, which in turn reduces your monthly instalments. It is crucial to take advantage of the refinancing window, which typically starts four months before your existing home loan renewal. If you choose not to refinance and stick with your current home loan, remember that mortgage interest rates tend to rise over time, leading to higher monthly instalments.
Cash-Out Refinancing
If you own a private property in Singapore such as a condo, cash-out refinancing allows you to utilise your property as collateral to obtain a home equity loan. Generally, you can receive a cash amount equivalent to up to 60% or 75% of your property’s value (after deducting the remaining loan amount and any CPF used for the property) when you refinance your mortgage loan. This cash can be used for consolidating debt or investment purposes. However, it’s advisable not to exhaust the maximum cash-out allowed to account for potential changes in your property’s valuation.
Lower Interest Rates
Another reason why homeowners opt for refinancing is to secure better interest rates. This can be achieved by switching from a fixed interest rate to a floating interest rate, or vice versa. Fixed rate packages lock in an interest rate for a specific period, usually ranging from 1 to 5 years. Although the interest rate is slightly higher, it offers stability. On the other hand, floating rate packages fluctuate based on factors such as Singapore Overnight Rate Average (SORA), the benchmark interest rate for lending between banks.
Switch Between Fixed and Floating Rate
One of the less obvious advantages of refinancing is the opportunity to change the type of rate you are on, not simply the rate itself. If you anticipate that interest rates will rise, locking into a fixed rate package provides certainty over your instalments for the years ahead. If the outlook suggests rates will fall, a floating rate package allows you to benefit as they decline.
Most floating packages today are pegged to SORA, which means your rate moves in line with a transparent, published benchmark. The right choice ultimately reflects your view on the direction of rates and your tolerance for fluctuation, and our consultants can guide you through both options before you commit.
When to Refinance
More often than not, homeowners usually think of refinancing to save money on their monthly payments with better long-term rates. This can be the case for those who want to switch from a floating rate bank loan to a fixed rate bank loan, depending on which is more beneficial in the long haul.
On the other hand, you may also choose to refinance your housing loan to adjust the length of your loan tenure to fit your financial situation. To help you out, our consultants streamline the procedure of selecting the best refinance housing loan, making it easy to switch banks at the right time.
Timing is crucial when it comes to refinancing your home loan, and here are some points you should consider:
Lock-in Period Ending
Refinancing your home loan should be a strategic move. Banks typically require a two or three-month notice before you can refinance and switch to another bank. Hence, it is vital to be aware of when your lock-in period will end. In most cases, you can secure a new package up to six months before your lock-in period expires, allowing you to lock in at a favourable rate well in advance. As a guide, plan ahead and initiate the refinancing process at least four months before the new interest rate cycle begins.
Extend Loan Tenure
Some homeowners opt to refinance to improve their cash flow by extending their loan tenure. Whether you have a HDB or private property such as a condo, 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 on your current loan will be deducted from your extended maximum loan tenure.
Refinancing Before Your Lock-in Ends
Waiting for your lock-in period to lapse is the conventional approach, but it is not the only one. If a competing bank is offering a sufficiently attractive rate, refinancing partway through your lock-in can still work in your favour once the penalty is accounted for. That penalty is generally around 1.5% of your outstanding loan amount, so the decision only makes financial sense when the interest savings over the new package comfortably exceed the cost of breaking early. This is rarely a straightforward calculation, and it is precisely the kind of scenario our specialists assess for you, presenting a clear comparison of whether switching now outperforms waiting.
Monitoring the SORA Trend
Because most floating rate packages today are pegged to SORA, the direction of that benchmark offers a useful signal for when to act. A sustained decline in SORA can make a floating rate refinance particularly rewarding, while a benchmark that appears set to rise may indicate the right moment to lock into a fixed rate. The emphasis here is on a sustained movement, as a single month’s shift reveals little on its own. We monitor the SORA trend closely on your behalf and notify you when the timing begins to favour a switch, ensuring your decision reflects the broader direction of the market rather than an isolated reading.
Am I Eligible to Refinance My Home Loan
Refinancing is not automatic, and your eligibility is assessed afresh each time you switch banks, much as it was when you first took up your loan. Most homeowners already on a bank loan meet these requirements comfortably. The main prerequisites to be aware of before applying are set out below.
- Total Debt Servicing Ratio (TDSR): Your monthly debt obligations must not exceed 55% of your gross monthly income, calculated against a stress-test rate of at least 4% rather than your actual rate.
- Loan-to-Value (LTV) Limit: Most private properties are capped at an LTV of 75%, which determines the maximum you can borrow against the property’s value.
- Minimum Income: A gross annual income of at least $30,000 is generally required for a single applicant, rising to approximately $36,000 where co-borrowers are involved.
- Maximum Age: Your loan must be fully repaid by the age of 75, which affects the maximum tenure available to you.
- Credit Score: A sound credit standing is expected, with most banks requiring a Credit Bureau grade of BB or higher.
- Re-Assessment at Refinancing: As eligibility is reviewed each time you refinance, any change in your income, commitments or credit profile since your previous loan may affect the outcome.
What Does It Cost to Refinance
Refinancing does involve a few costs, though they are modest and, in most cases, substantially covered by the incoming bank. Understanding them in advance allows you to weigh the switch accurately against the savings on offer. There are two primary costs to account for.
- Legal Fees: Conveyancing and associated legal work generally range from $1,500 to $2,000, payable to the law firm handling your refinance.
- Valuation Fee: The bank requires a fresh valuation of your property, which typically costs between $200 and $400 depending on the property type.
These costs are where the available subsidies become relevant. For HDB refinancing, a home loan amount of $300,000 or more generally qualifies for a full legal subsidy, effectively offsetting the legal fee in its entirety. For private property, a loan amount of $400,000 or more can attract a cash subsidy of up to $2,000. Do note that a clawback applies should you refinance or redeem the loan again within three years, in which case the subsidy may need to be repaid, so it is advisable to commit to your new package for the full period.
As for our role, engaging DollarBack Mortgage costs you nothing. Our broker fee is paid by the bank you ultimately refinance with, rather than by you, which means our advice, comparison and end-to-end support are provided entirely free while you retain the full value of your rewards.
Why Use DollarBack Mortgage to Refinance?
Enjoy up to $6,300 in Cash Rewards
Enjoy cash rewards when you refinance a home loan with DollarBack Mortgage. Cash rewards, up to $3,300 from participating banks + up to $3,000 in bank subsidies. This enables you to maximise your interest savings while having zero upfront refinancing fees.
Find out more about our attractive rewards.
Lowest Interest Rates Every Time
If you’re choosing to refinance in the coming months, rest assured that our advisory will provide a consultative approach to allow homeowners access to interest rates not openly advertised to the public and a guided end-to-end approach for refinancing your home loan. With clear comparisons across 16 banks in Singapore and detailed breakdowns, you will maximise your savings with your new refinance home loan package.
Client Testimonials
The Refinance Housing Loan Process
To help you navigate the refinancing process smoothly, let's explore the steps involved, including the legal and negotiation aspects.
Know Your Current Home Loan
Before you begin to refinance, create a checklist of the essential information to find out about your current home loan. This includes details such as the outstanding loan balance, monthly instalments, loan tenure, fees and charges, interest rates, and early repayment penalties. Being prepared with this information will make the refinancing process easier.
Compare Refinance Home Loan Packages
After gathering the necessary details about your current loan, it's important to compare the refinancing mortgage loan interest rates offered by various banks in Singapore. Compare these rates against your existing home loan to ensure you're getting the best deal.
Documents Required for the Refinancing Application Process
During the refinancing application process, certain documents will be required such as:
- NRIC/Passport
- latest outstanding loan statement
- latest CPF Property Withdrawal Statement
- latest Notice of Assessment from IRAS (2 years for self-employed/1 year for employed)
- 12 months of CPF statement history
- latest 3 months’ payslip
- employment contract (if you have been employed for less than 3 months)
- tenancy agreement & stamp certificate (if applicable for rental income).
For those whose existing home loan is from a financial institution, you will also need to have your IRAS My Property Tax page ready. But if your home loan is from HDB, then that won’t be necessary. Additionally, if you plan to refinance for a HDB flat, you will need to provide your HDB flat information and HDB financial information.
Lawyers on Legal Panels
When engaging a lawyer for mortgage refinancing, it’s crucial to choose one who is on the preferred panel of the bank you are refinancing to. If you do not have a conveyancing lawyer, our mortgage consultants can recommend a professional and cost effective law firm across all bank panels in Singapore.
Apply for Your Refinance Home Loan
Make sure to initiate your application at least four months before your current home loan lock-in period ends. Allowing ample time for the application process and the required notice period to your current bank is crucial. Starting the process earlier can also help address any issues that may arise during refinancing.
Frequently Asked Questions
When is a good time to refinance my home loan in Singapore?
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.
What is the difference between repricing and refinancing?
While you can enjoy better deals through refinancing, which means changing 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.
Is it wise to pay off my bank mortgage loan early in Singapore?
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 more, 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.
What is the minimum credit score required to qualify for a refinance home loan package?
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.
Are there any specific income requirements to be eligible for a refinance home loan?
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.
How does the loan-to-value (LTV) ratio affect the eligibility for a refinance home loan?
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.
Can self-employed individuals qualify for a refinance home loan package?
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 criteria for assessing the eligibility of self-employed borrowers.
How long does the refinancing process usually take from application to loan approval?
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.
What are the potential fees involved in refinancing a home loan?
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.
Can I refinance my home loan if I have an existing outstanding personal loan?
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.
What factors should I consider when choosing between a fixed interest rate and a floating interest rate for a refinance home loan?
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.
Are there any penalties or fees associated with early repayment after a refinancing?
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.
Can I refinance my home loan if I have previously been bankrupt or faced financial difficulties?
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.
What happens if the valuation of my property decreases during the refinancing process?
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.
Are there any subsidies available for refinancing home loans in Singapore?
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.
RELATED SERVICES
New HDB Loan
Secure the best HDB home loan interest rate in Singapore with exclusive mortgage packages. Complete your HDB purchase with reputable conveyancing law firms and enjoy discounted legal fees.
Property Conveyancing
Through our partner law firms, you receive special discounted fees for your HDB refinancing.
DollarBack Rewards
Receive cash rewards when you refinance your existing HDB mortgage loans with us today.
Tips For Refinancing Your Housing Loan
Look for Refinancing Options in the Fourth Year or Beyond
It's advisable to consider refinancing options once you reach the fourth year of your existing home loan. Many mortgage loan packages tend to increase their interest rates starting from the fourth year. For instance, a typical SORA rate package may have a lower bank spread for the first three years, but it increases from the fourth year onward. Being aware of this pattern allows you to explore better interest rates and potentially save on your loan.
Consider Whether the Refinancing Costs Are Justifiable
Refinancing a home loan often incurs legal costs, ranging from $1,500 to $2,000, in addition to potential fees such as property valuation. To determine whether refinancing is worthwhile, it's crucial to calculate the potential savings against these costs to refinance a home loan. For example, comparing monthly repayments between the existing loan and the refinanced loan can help assess the feasibility of the cost-saving benefits. Consider factors such as the duration you plan to stay in the property and your financial goals before deciding if the refinancing costs are justifiable.
Keep Your Debts Low if You Want to Refinance
When applying for refinancing, lenders will reassess your financial situation, including your Total Debt Servicing Ratio (TDSR) and loan-to-value ratio. It's important to note that qualifying for a loan again during refinancing is not automatic, even if you were eligible initially. To enhance your chances of approval, make sure to pay down debts and maintain a healthy credit score. Start paying down outstanding debts a few months before attempting to refinance.
Check for Free Repricing Options Before You Refinance
Before your refinance, check if your current housing loan package offers free repricing options. Repricing allows you to switch to a different loan package within the same bank, while refinancing involves changing banks. If you can reprice your loan for free at a competitive rate, the cost savings can be more significant compared to refinancing.
Pay Attention to the Long-Term Rates, Not the Teaser Rates, of the New Package
When assessing loan packages, it's essential to focus on the long-term rates rather than the initially low teaser rates. While some loan packages may have attractive introductory rates, they could significantly increase after the initial years. Prioritise evaluating the final rates, especially if you have a long loan tenure. However, if you plan to sell the property before the interest rate hike occurs, the teaser rates may still be advantageous.
Don't Refinance If You're in a Lock-In
If your home loan has a lock-in clause, breaking the lock-in to refinance can result in a penalty of around 1.5% of the remaining loan amount, in addition to the usual refinancing costs. Unless the loan rate becomes excessively high and surpasses the lock-in penalty, it's generally more prudent to wait until the lock-in period is over or consider repricing with your existing bank.
Get Your Mortgage Refinanced With DollarBack Mortgage
Engaging a home loan specialist is an invaluable resource during the refinancing process, and their assistance is typically provided at no cost to you. These specialists can offer expert advice on whether it’s the right time to refinance and provide guidance on minimising costs. Take advantage of DollarBack Mortgage’s expertise to navigate the complexities of refinancing and make informed decisions.
