Updated 24 Sep 2026. This comparison replaces unsupported rate forecasts, fee benchmarks and a claim that every borrower is entitled to a free conversion offer. The figures below are hypothetical, not available bank packages.
A cheaper mortgage rate is useful only if the savings survive the switching costs and fit your plans for the home. Start by comparing three choices over the same period: keep your present package, reprice with your current bank, or refinance with another lender. Keep the outstanding balance and remaining tenure identical in the first comparison.
What changes when you reprice or refinance?
Repricing changes the package at your existing bank. Refinancing moves the loan to another lender. MoneySense recommends comparing repayment schedules and checking penalties, conversion charges and subsidy clawbacks. Ask for the property loan fact sheet and signed offer terms, rather than relying on an advertised starting rate.
There is no universal fee-free conversion entitlement established by the sources reviewed here. DBS’s explanation, for example, distinguishes accounts with a free-conversion feature from other repricing packages. A benefit in a particular contract is not a promise that every bank owes every borrower.
| Choice | What to ask for in writing |
|---|---|
| Keep the loan | The rate and instalment after the current promotional period, plus the dates on which existing restrictions end. |
| Reprice | The conversion cost, effective date, new restrictions and whether any free-conversion feature applies to this account. |
| Refinance | The complete switching budget, including legal and valuation costs, notice requirements, old subsidies repayable and conditions attached to new rebates. |
A lower instalment is not the same as an equal saving
Consider an owner with an S$800,000 balance and 20 years left. For this illustration only, assume constant annual rates for the next 24 months, monthly repayments, no early repayment, no exit penalty and no other costs. Fees are paid separately at the start and are not added to the loan. These are invented comparison inputs, not quotes or market averages.
| Option | Instalment, interest and remaining debt |
|---|---|
| Keep: 3.0%, no fee | Monthly payment S$4,436.78. Interest over 24 months S$46,287.39. Balance after payment 24: S$739,804.65. |
| Reprice: 2.8%, S$500 fee | Monthly payment S$4,357.11. Interest S$43,168.37. Interest plus fee S$43,668.37. Remaining balance S$738,597.65. |
| Refinance: 2.6%, S$2,500 fee | Monthly payment S$4,278.30. Interest S$40,053.65. Interest plus fee S$42,553.65. Remaining balance S$737,374.34. |
Under these assumptions, refinancing costs S$1,114.72 less in interest and fees than repricing over 24 months. Its monthly payment is S$78.81 lower, but multiplying that difference by 24 does not measure the interest saving: the outstanding balances also differ. Principal repayments reduce what you owe; they are not an interest expense.
The calculation uses the standard amortising-loan formula, with the annual rate divided by 12 and 240 monthly payments. Interest is recalculated on the reducing balance each month. Displayed values are rounded to cents after calculation. Actual lender calculations, payment dates and rounding can differ.
This example also shows how easily a modest advantage can disappear. An additional S$1,500 net refinancing cost would make the refinancing option S$385.28 more expensive than repricing over this period. Replace every input with written figures before choosing. If a floating rate changes, rerun the comparison; this model does not forecast its path.
Match the comparison period to the household’s plans
If you expect to sell or make a large repayment within a year, request a separate 12-month comparison including the applicable exit charges. A 24-month saving is little comfort if you leave the package earlier. Conversely, a family expecting to stay for years should inspect the rate after the promotional period, not just the first instalment.
Keep any proposal to lengthen the tenure on a separate worksheet. It can lower the monthly bill while leaving you repaying the debt for longer. Decide whether the objective is lower interest cost, predictable payments or temporary cash-flow relief, then compare offers against that objective.
For a rented home, test affordability during a vacancy and repair period. For your own home, keep a cash buffer for school, care and moving expenses. Using all available cash to reduce the mortgage may leave the household dependent on borrowing again when an unexpected bill arrives. These are budgeting considerations, not a recommendation to take a particular product.
Check approval and CPF arrangements before cancelling anything
MAS distinguishes owner-occupied refinancing from investment-property refinancing. An existing owner-occupier refinancing a property-purchase loan has a TDSR exemption. Investment-property borrowers exceeding the threshold face specific conditions, including a debt reduction plan and the lender’s credit assessment. Do not apply a blanket new-purchase test to every refinancing case, or assume an exemption guarantees approval. Cash-out borrowing needs its own assessment.
Check your applicable CPF housing withdrawal limit and the instructions for monthly payments. Agree with the lender and lawyer who handles the final old-loan payment and first new-loan payment, and when any CPF instructions must change. Do not assume the administrative transition happens automatically.
For HDB owners already using a bank loan, MoneySense states that refinancing back to an HDB loan is not allowed. Factor that restriction into any decision to move away from HDB financing.
Before accepting an offer
- Put all three offers on the same balance, tenure and comparison dates.
- List each cost once, and distinguish a rebate received now from one repayable if you leave early.
- Confirm the new lender’s approval, the notice sequence and the effective date before serving redemption instructions.
- Check affordability if the rate rises or household income falls.
- Keep the offer, fact sheet, calculations and correspondence together so both borrowers understand the commitment.
General financial information, checked against the linked MoneySense, MAS and DBS sources on 24 September 2026. The example is an editorial calculation and has not been reviewed or approved by a lender. Obtain terms and advice for your own loan before acting.
Featured photograph: Robertson Quay, 31 July 2011, by Bryanmackinnon, Wikimedia Commons, CC BY-SA 3.0. Cropped for the website; archive residential-area context, not a property or mortgage recommendation.
