Refinancing your home loan in Singapore can lead to significant savings, especially as bank loan rates have dropped well below the HDB concessionary rate of 2.6%. Whether you are considering switching from an HDB loan to a bank loan, comparing refinancing versus repricing, or timing your move around lock-in periods and property market shifts, understanding the costs, trade-offs, and process is essential to making the right decision. Historical data shows bank loans have been cheaper than HDB loans roughly 76% of the time over the past 20 years, making refinancing one of the most impactful financial moves a homeowner can make.
Still on a 3.5% loan? The 2026 refinancing math, and how to sequence it
If you locked in a mortgage during the 2022 to 2024 rate spike, you are likely still paying 3.5% or more, while current fixed rates sit around 1.4% to 1.6%, making refinancing the highest-impact financial move available to most Singapore homeowners. To capture the saving without penalties, start the process four months before your lock-in ends, confirm you pass the TDSR stress test at 4.0%, and compare packages across multiple banks before committing.
Sarah Chen3 Aug 2026
