Are You Overpaying on Your Singapore Home Loan? Here’s How to Find Out

For most Singaporeans, buying a home is the biggest financial milestone of their lives.
👉 That’s why the savings potential is significant.

Home Loan Rates Have Dropped — But Many Haven’t Switched

Just one year ago, home loan packages in Singapore hovered around 3%. Go back further, and rates were even higher.

Today, the picture looks very different:

• Best packages in 2025: ~1.7%–2.0% (depending on loan size)
• Typical rates 1 year ago:~3.0%

👉 More than 40% savings compared to only a year ago

How Much Could You Be Losing?

Take a $1,000,000 home loan as an example and compare the annual interest cost:

• 3.0%: $30,000 interest per year
• 1.8%: $18,0000 interest per year

That’s $12,000 saved per year by refinancing to today’s best rates.

But What About Lock-In Periods?

Most home loans in Singapore have a 2–3 year lock-in period. This means you’ll face a penalty if you refinance too early.

But here’s the catch: once your lock-in ends, the bank quietly moves you to less competitive “board rates.”

So while many people assume staying with their bank is safe, in reality it’s usually the most expensive choice. Regularly refinancing or repricing is required to not overpay.

Why Many Singaporeans Don’t Refinance

• It feels complex: Jargon like SORA, lock-ins, and spreads make it confusing.
• Hassle factor: People imagine piles of paperwork and bank visits.
• Trusting the bank: Borrowers often think their current bank will automatically give them the best deal.

The result? Thousands of dollars wasted every year.

The Smart Way: Compare All Banks in Minutes

Instead of calling 10 different banks, you can now check everything in one place with Cashew:

✅ Compare 500+ packages across all major banks
✅ See personalised options based on your loan amount
✅ 100% digital — no paperwork, no sales pressure
✅ Transparent and unbiased