Refinancing and Repricing Your Home Loan in Singapore
When to reprice with your bank versus refinance to a new one: lock-in periods, the 1.5% penalty, legal and valuation costs, TDSR, and the switch from SIBOR to SORA.
SG Block Index · updated 2026-07-16 · data.gov.sg & OneMap
A home loan is not set-and-forget. Most packages start with a low rate that steps up after two or three years, and when it does, staying put can quietly cost you thousands a year. The fix is to reprice or refinance — but the two are different, and the timing and costs decide whether the switch is worth it. Here is how to think about it.
Repricing versus refinancing
Repricing keeps you with the same bank on a new package — less paperwork, no new lawyer, quick to complete. Refinancing redeems your current loan and continues it with another bank, usually to chase a better rate. As a rule, repricing wins on convenience and cost for smaller loans, while refinancing can win on larger ones where the rate saving outweighs the switching costs.
Watch the lock-in and the penalties
Redeeming or refinancing during the lock-in period costs roughly 1.5% of the outstanding amount — on a large loan that is real money, and it usually wipes out any rate saving. There is often a second trap: if the bank subsidised your legal or valuation fees, leaving within two to three years can force you to repay those subsidies too. Give your bank adequate notice — commonly around three months before the lock-in ends — so the switch lands the moment you are free to move.
The costs of switching
Refinancing to a new bank means fresh legal fees (roughly $1,500–$2,000) and a valuation fee, though banks frequently offer subsidies or cash rebates once the loan clears a size threshold. Repricing typically costs only a small admin fee and completes in a few weeks, versus a couple of months for a full refinance. Fold either into your wider cost of ownership— the saving only counts after the costs are paid back.
TDSR and who is exempt
Singapore caps total monthly debt repayments at 55% of gross income under the Total Debt Servicing Ratio, and taking a new loan — including refinancing an investment or private property — is reassessed against it. The important carve-out: refinancing a loan on an owner-occupied home is generally exempt from TDSR, provided you do not increase the loan amount or extend the tenure. That is why owner-occupiers can usually refinance even if their numbers would otherwise breach 55%.
SORA, not SIBOR
The benchmark under your loan has changed. SIBOR was discontinued after end-2024, and Singapore home loans now peg to SORA, the Singapore Overnight Rate Average — a backward-looking rate based on actual overnight transactions, so the applicable rate for each period is known in advance. If you are still on a legacy SIBOR package, refinancing or repricing onto a SORA or fixed package is part of the housekeeping.
When it’s actually worth it
Weigh the rate saving — the rate gap times your outstanding balance times the years left — against the switching costs and any penalty. Larger loans early in their life justify more effort; a small balance near the end of its tenure rarely does. Because rates move constantly, compare live packages at the time and don’t chase a saving too thin to clear the costs. Keep it inside what you can afford.
Figures on this page are computed from the current snapshot and update each rebuild. Contains information from data.gov.sg (Singapore Open Data Licence) and OneMap, Singapore Land Authority. This is general information for research, not financial or professional advice.
Frequently asked questions
- What's the difference between repricing and refinancing?
- Repricing means switching to a new loan package with your existing bank; refinancing means moving the loan to a different bank. Repricing is cheaper and faster with less paperwork, so it often suits smaller loans. Refinancing can secure a better rate but involves legal and valuation fees, so it tends to pay off on larger loans.
- Will I pay a penalty if I refinance during the lock-in period?
- Usually yes. Most packages have a 2–3 year lock-in, and redeeming or refinancing during it triggers a penalty of roughly 1.5% of the outstanding loan. You may also have to repay any legal or valuation subsidies the bank gave you. It's why most people time a switch for when the lock-in ends and give about three months' notice.
- Does TDSR apply when I refinance?
- For investment or private property loans, refinancing is reassessed against the 55% Total Debt Servicing Ratio. But refinancing a loan on an owner-occupied home is generally exempt from TDSR, as long as you don't increase the loan amount or extend the tenure — which is why most owner-occupiers can refinance freely.