Property Refinancing Singapore
Refinancing — Lower Your Monthly Repayments With the Right Switch
When your lock-in ends, staying with your current bank often means a higher reversion rate. We compare 12+ banks, calculate your exact net savings after all fees and penalties, and manage the switch end-to-end. 4–5% success-only fee.
When refinancing makes sense
Refinancing is not always the right move. Here are the three conditions where it almost always pays — and when it does not.
Lock-in period ending
At lock-in expiry you can switch without any clawback penalty. Your current bank will typically move you to a floating reversion rate that is higher than what a new bank will offer. Start comparing 3 months before expiry.
Rate gap of 0.3% or more
On a $600K outstanding loan, 0.3% difference saves $1,800/year in interest. Legal fees (often subsidised by the new bank) are typically recovered in under 12 months. On larger loans, even a 0.2% gap can justify the switch.
Outstanding loan above $300K
Below $300K, the fixed cost of refinancing relative to the interest saved makes the maths tight. Above $300K, refinancing to a better rate almost always pays — typically within 12–18 months.
When refinancing does not make sense
If you are well into your lock-in period and the clawback penalty exceeds the interest savings over the remaining term, staying put is usually right. If your outstanding loan is very small (under $200K), the fixed costs may not be worth it. We calculate this honestly and tell you when refinancing does not make financial sense.
Clawback penalty — what it is and how to calculate it
A clawback penalty (also called a prepayment penalty) applies when you exit your mortgage before the lock-in period ends. Banks impose this to recover subsidies they extended at the start of your loan.
Typical clawback structure
- • Most common: 1.5% of outstanding loan amount
- • Some packages: 0.75%–1.5% per year remaining in lock-in
- • Some include legal fee clawback if bank subsidised your original legal costs
Example calculation
Outstanding loan: $800,000. Current rate: 3.8%. New rate available: 3.2%. Monthly saving: ~$320. Annual saving: ~$3,840. Clawback at 1.5%: $12,000. Legal fees: $2,500 (new bank subsidises $2,000, net $500). Total switch cost: $12,500. Payback period: 3.3 years. Lock-in has 2.5 years to run. Result: wait for lock-in to expire.
Stay vs. switch — how refinancing scenarios compare
| Scenario | Stay with current bank | Switch to new bank |
|---|---|---|
| Rate after lock-in | Higher reversion rate (often +0.5–1.0%) | New competitive package rate |
| Legal fees | None | $2,000–$3,500 (often subsidised) |
| Clawback penalty | None if lock-in expired | None if timed correctly |
| Admin effort | Minimal | Moderate (we manage end-to-end) |
| Interest savings (3 yr, $600K loan, 0.4% diff) | $0 | ~$7,200 net of fees |
| Repricing option | Available with same bank (limited options) | Full market comparison |
Numbers are illustrative. We calculate your exact scenario before recommending any action.
Legal fees — often subsidised by your new bank
Refinancing to a new bank requires a fresh mortgage deed, prepared by a Singapore law firm. This typically costs $2,000–$3,500 for most residential properties.
When banks subsidise legal fees
Many banks offer legal fee subsidies to attract refinancers. The subsidy amount varies by loan size and market conditions. We check current subsidy offers from all banks and factor them into the net savings calculation.
When you pay legal fees
If no subsidy is available, legal fees come out of your pocket. On a $700K loan saving 0.4% annually ($2,800/year), $2,500 in legal fees is recovered in under 11 months. We calculate this explicitly before recommending a switch.
How we run the refinancing process
Check your lock-in end date
We review your existing Letter of Offer to confirm when your lock-in expires and what the clawback penalty is for early exit.
Calculate net savings
We compare your current rate against available packages, deduct the clawback penalty (if applicable) and legal fees, and calculate the true net savings over 3 years.
Match to the best package
If refinancing makes sense, we identify the 2–4 banks with the best packages for your outstanding loan amount, property type, and income profile.
Submit and manage
We prepare your application, submit to matched banks, and manage the process through to Letter of Offer — coordinating with your solicitor and the new bank.
Switch at the right moment
We time the switch to coincide with lock-in expiry, ensuring no clawback and a clean transition from old bank to new.
Refinancing — frequently asked questions
When is the best time to refinance my Singapore mortgage?
The best time is 3–6 months before your lock-in period ends. This gives you time to compare packages, get in-principle approval, and have everything ready so the switch happens exactly at lock-in expiry — avoiding the clawback penalty and any gap on your bank's higher reversion rate. Waiting until after lock-in ends is better than nothing, but you may spend 1–3 months on the reversion rate while you sort the paperwork. We track your lock-in date and remind you when to start the review.
What is a clawback penalty and how much is it?
A clawback penalty (also called a prepayment or repricing penalty) is charged when you exit a mortgage before the lock-in period ends. Typically 1.5% of the outstanding loan amount per year remaining in the lock-in, or a flat percentage (commonly 1.5%). On a $1M loan with 1 year left in lock-in, that is $15,000. The penalty can be significant enough to make early refinancing uneconomical. We calculate the penalty against the savings from switching before recommending anything.
What are the legal fees for refinancing and who pays them?
Refinancing requires a new mortgage deed to be prepared by a Singapore law firm, which costs $2,000–$3,500 for most residential mortgages. Many banks subsidise legal fees as an incentive to attract refinancers — DBS, OCBC, UOB, and Standard Chartered have all offered legal fee subsidies at various points, sometimes covering the full amount. We factor any legal fee subsidy into the net savings calculation. Even when no subsidy is offered, legal fees on a large loan are typically recovered within 6–12 months of interest savings.
Does refinancing affect my CPF usage?
Refinancing to a new bank does not reset your CPF Withdrawal Limit or change the total amount of CPF you can use. Your CPF OA funds can continue to service the new mortgage. What refinancing does require is a fresh mortgage deed, which involves your CPF account being pledged to the new bank. This is a standard process handled by your solicitor and the Central Provident Fund Board. There is no CPF-related reason to avoid refinancing if the numbers make sense.
Can I refinance if my property value has dropped since I bought?
Yes, but the new LTV limit applies to the current market valuation — not the original purchase price. If your property has dropped in value, the new bank will base the maximum loan on the lower valuation. If your outstanding loan is close to or exceeds 75% of the current valuation, you may need to top up the shortfall in cash before the refinancing can proceed. We run a preliminary valuation estimate before recommending a switch so you know your position upfront.
Want the full picture on property financing in Singapore?
Read the complete property financing guide →Find out how much you can save by switching.
Share your current loan details and we calculate the net saving — after clawback and legal fees — against the best available packages from 12+ banks.
Calculate my refinancing savings →Last updated: April 2026