How much can I save by refinancing my mortgage?

Refinancing from an HDB concessionary loan at 2.6% to a bank fixed rate of 1.4% can generate significant savings, though the exact amount depends on your outstanding balance, remaining tenure, and refinancing costs.

Take a homeowner with S$700,000 outstanding and 20 years remaining. At 2.6%, the monthly instalment is approximately S$3,745. Refinancing to 1.4% brings this down to around S$3,330 - saving about S$415 per month, or approximately S$99,000 in total interest over the full tenure. Even after legal fees (around S$2,500, often partially subsidised), valuation fees, and administrative charges, the net savings remain substantial.

The 1.2% rate differential here is well above the threshold where refinancing makes clear financial sense.

A few things to keep in mind. Bank fixed rates are promotional, typically lasting two to three years before repricing to a floating rate. You will need to refinance again at that point to stay competitive. Also, once you leave an HDB loan for a bank loan, you cannot return to HDB financing - a trade-off worth understanding before committing.

Total cost of borrowing matters more than the headline rate. A lower rate with a long lock-in or unfavourable repricing terms may not deliver better value over time.

Cashew's advisors calculate the complete financial picture for you - your exact balance, tenure, all costs, and what happens when the fixed rate period ends. Whether the numbers favour switching now or waiting, you will get a clear, honest recommendation backed by data, not just the headline rate.