What happens when my bank loan lock-in period ends?
When your bank loan lock-in period ends in Singapore, your mortgage automatically reverts to the bank's standard board rate, which is typically much higher than your promotional rate. To avoid paying significantly more, you should start comparing refinancing or repricing options 3-4 months before your lock-in expiry date.
Last updated: 22 Apr 2026
Every bank home loan in Singapore has a lock-in period, typically 2-3 years, during which you benefit from a competitive promotional rate. Once this period ends, the loan automatically reverts to the bank's standard board rate, which is set at the bank's discretion and is usually significantly higher than the market rate.
For example, if your promotional rate was 1.55% and your lock-in expires, you might find yourself suddenly paying 3.5% or more on the board rate, an increase of nearly 2 percentage points. On a $600,000 loan, that could mean an extra $500-$600 per month.
To avoid this, you should:
- Note your lock-in expiry date when you sign your loan
- Start comparing options 3-4 months before expiry - this gives enough time to complete the refinancing process
- Choose between refinancing (moving to a new bank, which typically offers better rates and a new subsidy) or repricing (switching to a new package within the same bank, which is simpler but usually offers less competitive rates)
Cashew can help monitor your loan and alert you when it's time to act - so you never accidentally roll onto a board rate.