Refinancing
What is refinancing a home loan?
Refinancing means moving your home loan from your current lender to a new one, usually for a lower interest rate. In Singapore you can refinance an HDB loan to a bank loan, but you can't refinance a bank loan back to an HDB loan. Check for lock-in penalties, clawbacks and legal fees before switching.
Key facts
- What changes
- Your lender, loan package and interest rate
- HDB loan to bank loan
- Allowed
- Bank loan to HDB loan
- Not allowed
- Costs to check
- Lock-in penalties, clawbacks, additional legal fees or conversion fees
- When to review
- Regularly, particularly once your lock-in period is over
- CPF
- Check your CPF housing withdrawal limit when refinancing
As of 6 Nov 2026. Source: MoneySense, CPF Board, HDB.
How refinancing works
- Check where you stand. Find your outstanding loan, current rate and when your lock-in period ends.
- Ask your bank first. It may offer to reprice your loan, which keeps it in-house.
- Compare other banks. Look at repayment schedules, advertised rates and the effective interest rate (EIR).
- Count the costs. Ask your current bank about penalties, clawbacks, additional legal fees or conversion fees for ending your package.
- Switch. The new bank pays off the old loan, and you start repaying the new one.
HDB loans and bank loans
| Moving from | To | Allowed? |
|---|---|---|
| HDB loan | Bank loan | Yes |
| Bank loan | Another bank loan | Yes |
| Bank loan | HDB loan | No |
An HDB loan’s concessionary rate is pegged at 0.1 percentage point above the CPF Ordinary Account rate. A bank loan can be cheaper or dearer, depending on market rates.
Example
You owe $600,000 over 20 years at 3.0%. Another bank offers 2.0%. The rates and costs here are for illustration.
| Monthly repayment | |
|---|---|
| Current loan at 3.0% | $3,327.59 |
| New loan at 2.0% | $3,035.30 |
| Monthly saving | $292.29 |
| Saving over 12 months | $3,507.48 |
If switching costs $3,000 in fees, you would recover them in a little over ten months, assuming rates stay where they are.
Common mistakes
- Refinancing an HDB loan without thinking ahead. You can’t go back to an HDB loan later.
- Switching inside the lock-in. Penalties and clawbacks can wipe out the saving.
- Comparing only the first year’s rate. Look at the rate for every year of the package.
Frequently asked questions
Can I switch back to an HDB loan after taking a bank loan?
No. MoneySense says HDB flat buyers are not allowed to refinance an existing bank loan with an HDB loan. Think carefully before refinancing an HDB loan to a bank.
When should I start looking at refinancing?
Review your loan regularly, especially as your lock-in period ends. Ask your current bank about repricing first, then compare offers from other banks.
Why does my CPF withdrawal limit matter when refinancing?
If you have already used CPF up to your housing withdrawal limit, you may have to service the new loan in cash. Check how much CPF you can still use before you switch.
Related terms
Sources
- How home loans work (MoneySense)
- How much CPF savings you can use for your home purchase (CPF Board)
- Housing loan from HDB (HDB)
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.