Should I refinance?
A lower rate is only worth having if the saving outruns the cost of getting it. Three questions give you the monthly difference, the switching cost, and the month it pays for itself.
- Monthly saving and the cost of switching
- The month the switch pays for itself
- Checked against the new lock-in
- Free reminder before your next lock-in ends
Free check: should you refinance?
3 questions, about 1 minute. No sign-up.
Floating home loans move with SORA, which MAS publishes every business day.
See the chartThe switch in full
What the offer does not tell you
Legal and valuation fees run around $2,500 on a typical refinance. Many banks subsidise part of it to win your business, but that subsidy is usually clawed back if you leave inside the new lock-in — so it is a loan, not a gift.
If your current loan is still inside its lock-in, redeeming it triggers a penalty of roughly 1.5% of the amount redeemed. On $620,000 that is over $9,000, which usually wipes out the first two years of any saving.
Staying with your existing bank on a new package is called repricing. It costs a few hundred dollars rather than a few thousand and completes in weeks rather than months. Always get that quote before you shop elsewhere.
Divide the switching cost by the monthly saving and you get the month it pays for itself. If that month falls after your new lock-in ends, you have paid to move for no gain — however much better the new rate looks.
Start the process three to four months early. Most banks want three months' notice to redeem, and a refinance takes six to eight weeks to complete. Leave it late and you spend months on the reversion rate, which is usually the most expensive rate you will ever pay.
Reading the chart
The upper bar is the lock-in you are about to sign. The lower bar is how long the saving takes to repay what the switch cost you. If the lower bar finishes inside the upper one, the move is worth making. If it runs past the end, you are paying for a rate you will not hold long enough to benefit from.
Never miss your lock-in
A fixed rate lasts two or three years, not the whole loan. When the lock-in ends, the loan moves to the rate in your letter of offer, which is usually higher, and most people only notice when the instalment changes. Refinancing takes 6 to 8 weeks, so the real deadline is about 4 months before.
- One question. The month your lock-in ends. No sign-up, no NRIC, no loan details.
- WhatsApp reminders, free. A message 4, 3, 2 and 1 month before, each with what to do at that point and today's SORA.
- Or your own calendar. One tap adds the same dates to iPhone, Google or Outlook.
- Your number stays with us. A reminder sign-up is used only for your reminders. We share your details with a bank only if you ask us to help you apply. Reply STOP at any time.
Reminders come from the Kydos assistant on WhatsApp (+65 8311 7524), run by the team behind AnnualFiling.sg. We never sell your number. We pass your details to a bank contact or referral partner only when you ask us to help you apply, and only after you agree in the chat. See the privacy notice.
Free lock-in reminder
No sign-up, no payment. About 10 seconds.
Common questions
How often can I refinance?
As often as the lock-ins allow, which in practice means every two or three years. Each round costs legal and valuation fees, so it only pays when the rate gap is wide enough.
Is repricing better than refinancing?
Repricing is cheaper and faster; refinancing usually wins on rate. Get both quotes and compare them properly — banks tend to sharpen a repricing offer once they know you are shopping.
Can I refinance an HDB loan to a bank?
Yes, and many people do when bank rates are below 2.6%. But it is one-way: once you leave the HDB concessionary loan you can never go back to it.
Will I need a fresh valuation?
Usually yes, and the new bank lends against that valuation rather than what you paid. If prices have fallen, the loan they will offer may be smaller than the one you are replacing.
Does refinancing reset my tenure?
It can, but stretching the tenure back out lowers the payment and raises the total interest. Keep the remaining tenure the same unless you specifically need the cash flow.