Refinance Calculator

The refinance calculator shows how much you could save by switching your existing Singapore home loan to a new package, after accounting for the new interest rate, legal and valuation fees, and any penalties. It turns a confusing decision into a single net-savings figure and a clear break-even point.

What this calculator does

When your home loan's lock-in period ends, your interest rate often jumps to a higher "thereafter" rate. Refinancing (moving your loan to a different bank) or repricing (switching to a new package with your current bank) can bring the rate back down. But switching is not free, so the real question is whether the interest you save outweighs the cost of moving.

This calculator answers that. You enter your outstanding loan amount, remaining tenure, current interest rate and the new rate you have been offered. It calculates your monthly saving, your total saving over a chosen period, and, after subtracting switching costs, your net benefit.

How refinancing savings are calculated

The calculation compares two repayment streams. First, it works out your monthly instalment at your current rate. Then it does the same at the new rate. The difference is your gross monthly saving, which it multiplies across the period you plan to hold the new package.

From that gross saving it deducts the typical costs of switching:

• Legal and conveyancing fees, often partly offset by a bank subsidy.
• Valuation fees for the new lender to assess your property.
• Any prepayment penalty if you are still within your current lock-in period (commonly around 1.5% of the outstanding loan).
• Any clawback of subsidies if you are switching earlier than your existing package allows.

The result is the net amount you actually keep. A positive figure means refinancing pays off; a small or negative figure suggests waiting or repricing instead.

A worked example

Say you have S$700,000 outstanding over 20 years at 4.2%, and you are offered 3.3%. The lower rate cuts your monthly repayment by roughly S$330, or about S$3,960 a year. If switching costs S$2,500 in legal and valuation fees net of subsidy, you recover that cost in under eight months and pocket meaningful savings thereafter. The calculator confirms whether the maths works for your specific loan.

Refinancing versus repricing

Refinancing moves your loan to a new bank and usually offers the sharpest rates, but involves legal work and fees. Repricing keeps you with your current bank, is faster and cheaper, but the rates on offer may be less competitive. This calculator helps you compare both routes by simply changing the cost inputs, so you can see which delivers the better net outcome.

Who should use it

Homeowners approaching the end of a lock-in period should run it well ahead of time, since arranging a switch can take a couple of months. Anyone whose rate has risen sharply, or who is on an old package with an uncompetitive spread, can use it to quantify the upside of moving. It is equally useful for deciding whether to act now or wait until a penalty period expires.

Why timing matters

The biggest savings come from switching just as your lock-in ends and before your rate resets higher. Refinance too early and a prepayment penalty can wipe out the benefit; too late and you overpay for months on the higher thereafter rate. Modelling the net saving against the calendar helps you pick the right moment.

Frequently asked questions

Is it worth refinancing my home loan in Singapore?

It is worth it when the interest saved over your holding period clearly exceeds the legal, valuation and penalty costs of switching. The calculator gives you that net figure.

What does it cost to refinance?

Expect legal and conveyancing fees (often subsidised by the new bank), a valuation fee, and a prepayment penalty if you are still within your lock-in period.

Should I reprice or refinance?

Repricing with your current bank is cheaper and faster; refinancing to a new bank often secures lower rates. Compare the net savings of each, as the better choice depends on the rates and fees on offer.

How long before my lock-in ends should I start?

Begin about three to four months ahead. Refinancing involves legal processing and notice to your current bank, so early planning avoids paying the higher reset rate.

Will refinancing affect my loan tenure?

You can keep the remaining tenure or adjust it, subject to MAS limits. A shorter tenure saves more interest; a longer one lowers monthly payments.

---

This guide is for general information and does not constitute financial advice. Always confirm exact fees and penalties with your current and prospective lenders.