Refinancing means switching from an existing home loan to a new lender, typically to move onto a different interest rate or loan package. MoneySense notes that doing the same thing with the current bank is called repricing, or conversion.
Key takeaways
- Refinancing moves the outstanding loan to a different lender; repricing keeps it with the existing bank.
- MoneySense lists the fees that terminating a current package can incur: penalties within the lock-in period, clawbacks, additional legal fees and conversion fees.
- TDSR rules apply to refinancing, but an owner-occupier refinancing a housing loan is exempt from the TDSR threshold and the MSR limit at that point.
- An investment property loan can be refinanced above the 55% TDSR threshold only where the borrower commits to a debt reduction plan repaying at least 3% of the outstanding balance over no more than 3 years, and passes the lender credit assessment.
- An HDB flat financed by a bank loan cannot be switched back to an HDB concessionary loan.
See how this applies to your own figures.
Singapore Refinance Calculator →What refinancing involves
The new lender pays off the balance owed to the existing lender and the borrower continues repaying the new lender under a fresh package, with its own rate, tenure and terms. Banks are required to give a residential property fact sheet setting out the key features, including the lock-in period, the effective interest rate and the penalty fees.
Costs that can arise on a switch
- Penalties within the lock-in period on the existing loan
- Clawbacks on the existing package
- Additional legal fees
- Conversion fees, where the switch is a repricing with the same bank
How MAS rules treat refinancing
TDSR applies to any loan to purchase a property, any loan secured by a property, and any refinancing of those loans, for applications made on or after 29 June 2013. MAS exempts an existing borrower who is an owner-occupier from the TDSR threshold and the MSR limit at the point of refinancing. For an investment property loan, refinancing above the 55% threshold is allowed only with a committed debt reduction plan of at least 3% of the outstanding balance over a period of not more than 3 years.
What changes on the CPF side
Where CPF Ordinary Account savings are used to service the loan, MoneySense points to the CPF Housing Withdrawal Limit that applies on refinancing, which governs how much CPF can still be applied to the property.
Key refinancing figures
| Item | Figure |
|---|---|
| TDSR threshold for property loans | 55% of gross monthly income |
| Owner-occupied housing loan at refinancing | exempt from TDSR and MSR limits |
| Investment property loan above TDSR — debt reduction plan | at least 3% of outstanding balance over max 3 years |
| TDSR rules apply to applications from | 29 June 2013 |
| Bank loan to HDB concessionary loan switch | not permitted |
Figures as at 2026. Source: MoneySense.
Worked example
MoneySense illustrates an SGD 800,000 loan over 30 years on monthly rest: the instalment is SGD 2,760 a month at an effective interest rate of 1.5% and SGD 3,592 at 3.5% — a gap of SGD 832 a month. A rate difference of that size is what a borrower weighs against the penalty, clawback and legal costs of switching lenders.
Related terms
All Singapore glossary terms →Related calculator
Compare an existing home loan against a new package and see the change in 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.