A lock-in period is the stretch at the start of a bank home loan package during which the agreed interest rate applies and redeeming, repricing or refinancing the loan can attract a penalty.
Key takeaways
- MoneySense describes the lock-in period as the time for which the rate on a fixed rate monthly rest package stays the same.
- Leaving the loan inside the lock-in period can trigger a penalty, a clawback, or additional legal and conversion fees.
- The lock-in period is one of the items a bank is required to disclose in the property loan fact sheet before the loan is taken up.
- After the lock-in period on a bank package ends, the variable or thereafter rate takes over.
- An HDB concessionary loan carries no penalty for early repayment, unlike a bank loan, which may charge for early repayment or for refinancing within a lock-in period.
See how this applies to your own figures.
Singapore Refinance Calculator →What the lock-in period does
Inside the lock-in period the borrower keeps the agreed rate and the bank keeps the loan. Redeeming the loan, paying down a large lump sum or moving to another package during that window can attract charges set out in the loan agreement. Once the lock-in ends, the package usually moves onto its variable or thereafter rate, and the loan can be repriced or refinanced without a lock-in penalty.
Where the terms are disclosed
Before a home loan is signed, the bank is required to provide a property loan fact sheet. MoneySense lists the lock-in period alongside the loan amount and tenure, the total repayment amount, the interest rate and repayment schedule, a rate change illustration, the effective interest rate and the penalty fees. The length of the lock-in and the size of any penalty differ by package.
How the lock-in feeds into MAS rules
MAS defines the thereafter interest rate as the highest rate an institution offers at any time during the tenure of a property loan, typically charged after the introductory or lock-in period. Lenders use the higher of that rate and the medium-term rate floor — 4% for residential property purchase loans and 5% for non-residential ones — when testing a borrower against the TDSR.
Key lock-in period figures
| Item | Figure |
|---|---|
| Rate behaviour during the lock-in | held at the agreed package rate |
| Rate after the lock-in ends | variable or thereafter rate |
| Medium-term rate floor used in TDSR — residential | 4% p.a. |
| Medium-term rate floor used in TDSR — non-residential | 5% p.a. |
| HDB concessionary loan early repayment penalty | none |
Figures as at 2026. Source: MoneySense.
Worked example
A borrower on a fixed-rate bank package is inside a lock-in period while that fixed rate runs. Redeeming or refinancing the loan before it ends can bring a penalty and a clawback at the same time. The property loan fact sheet states the length of the lock-in and the penalty fees before the loan is accepted. An HDB concessionary loan carries no early repayment penalty at all.
Related terms
All Singapore glossary terms →Related calculator
See how a change of package or rate at the end of a lock-in period affects the monthly instalment.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to MoneySense and MAS and seek independent professional advice before making any financial decisions.