Lock-in Period
What is a lock-in period?
A lock-in period is the time at the start of a home loan during which you may pay a penalty if you repay part or all of the loan, or refinance it with the same or another bank. Its length and penalties differ by loan package and are set out in the loan's fact sheet, so check them before you sign or switch.
Key facts
- What it restricts
- Partial or full repayment, and refinancing, without penalty
- Length
- Differs by loan package; stated in the fact sheet
- Counted from
- The date of the first loan disbursement
- Costs that may apply
- Penalty fees, clawbacks of subsidies, extra legal fees or conversion fees
- Fixed-rate packages
- Variable rates usually apply after the fixed-rate period ends
- Best time to review a loan
- Particularly once the lock-in period is over
As of 6 Nov 2026. Source: MoneySense, MAS.
How a lock-in period works
Banks often price a home loan attractively for the first few years. In return, the loan has a lock-in period: if you repay early or move the loan elsewhere during it, the bank can charge a penalty, and may also claw back subsidies it gave you, such as help with legal fees.
Once the lock-in period ends, you can usually repay, reprice or refinance without that penalty.
The MAS fact sheet for residential property loans states the lock-in period in years from the date of the first loan disbursement, and lists the fees for refinancing with the same bank or a different bank, and for extra or full repayment. If your loan has a lock-in of Y years, the bank must show you repayment illustrations for at least Y + 1 years, so you can see what happens after it ends. During any period in which part of your rate is stated as fixed, the bank must not change that part.
| During the lock-in period | After it ends |
|---|---|
| Penalties may apply to partial or full repayment | Penalty for early repayment usually no longer applies |
| Refinancing may trigger penalties and clawbacks | You can usually switch without lock-in penalties |
| Your fixed or promotional rate applies | The rate often moves to a variable rate |
Example
Your fact sheet shows a 3-year lock-in with a penalty of 1.5% of the amount repaid, and a clawback of a $2,000 legal subsidy if you refinance within that time. These terms are for illustration; your package may differ.
| Scenario, with $600,000 outstanding | Cost |
|---|---|
| Refinance in year 2 | $9,000 penalty + $2,000 clawback = $11,000 |
| Refinance in year 4 | $0 under these terms |
If refinancing saves less than $11,000 over the next year or so, waiting until the lock-in ends may be better.
Common mistakes
- Planning to sell soon after buying. A sale during the lock-in can trigger the penalty.
- Forgetting the clawback. Subsidies such as legal fee help can be clawed back on top of the penalty.
- Not checking when the lock-in ends. Set a reminder a few months before, so you can compare packages in time.
Frequently asked questions
Can I sell my property during the lock-in period?
Yes, but selling usually means repaying the loan in full, which can trigger the lock-in penalty. Check your fact sheet for what applies when the loan is redeemed because of a sale.
Does a new loan package come with a new lock-in?
Often, yes. MoneySense advises asking whether the new package has its own lock-in period and what charges apply before you reprice or refinance.
Where can I find my loan's lock-in terms?
In the MAS-standard fact sheet for your loan package and in your Letter of Offer. The fact sheet lists the lock-in period and the fees for extra repayments and refinancing.
Related terms
Sources
Every figure on this page was checked against the official government sources above on 6 Nov 2026. See our editorial policy.
This is general information, not financial, legal or tax advice.