Best HDB Refinance Home Loan Rates in Singapore

Q: Can I refinance my HDB loan to another HDB loan?

No, you cannot refinance your existing HDB housing loan with another HDB housing loan. HDB housing loans are designed for the initial purchase of an HDB flat and are not available for refinancing purposes. However, you can refinance your HDB housing loan with a bank loan, often called a HDB bank loan, to potentially secure the best interest rates possible and more flexible terms.

Q: Can I switch back from a bank loan to a HDB loan?

No, once you've refinanced your HDB flat with a HDB bank loan, you cannot switch back to a HDB housing loan for the same property. Therefore, it's crucial to carefully consider all the details and implications of refinancing with a bank loan before making a decision.

Q: Can I refinance my HDB loan multiple times?

Yes, you can refinance your HDB bank loan multiple times, as long as you meet the eligibility requirements each time. This allows you to take advantage of newer and more competitive loan packages that may become available. However, it's important to consider the costs involved in refinancing, such as legal and valuation fees, and ensure that refinancing aligns with your long-term financial goals.

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What Is HDB Loan Refinancing?

HDB loan refinancing is the process of switching your existing Housing Development Board (HDB) loan to a new home loan package, offered by a bank or another financial institution (FI). This allows you to potentially take advantage of lower interest rates, more flexible loan terms and other benefits that might not be available with your current HDB loan. However, it's important to note that once you refinance your HDB loan to a bank, you cannot switch back to an HDB loan in the future for the same property.

Eligibility and Requirements

Before you jump into refinancing your HDB loan, it's essential to ensure you meet the eligibility criteria. Here's a breakdown of the key requirements:

Lower Interest Rates

Refinancing can help you secure a lower interest rate on your home loan. With more Singaporeans stressing over their mortgage nowadays, this is especially beneficial if you're currently locked into a high-interest rate, or if interest rates have fallen since you took out your mortgage. Take advantage of promotional home loan refinance offers, to snag the best home loan rates in Singapore. You can also switch from a fixed rate to a floating rate — or vice versa — to potentially reduce your interest payments.

Better Cash Flow for Investments

Need to free up some cash for investments? Refinancing can help. A cash-out refinance allows you to access your home equity and use it for investment purposes. Alternatively, refinancing to a lower monthly repayment can improve your cash flow and give you more financial flexibility for managing your investments.

Adjustment of Tenure and Repayment Structures

Refinancing allows you to adjust your home loan tenure and repayment structure. This may be best if your financial circumstances have changed or if you want more flexibility in your repayments. For example, you could shorten your loan tenure to pay it off sooner, or you could opt for a more flexible repayment structure that allows you to make larger payments when you have extra cash. This can help you reduce the total principal amount and save on interest in the long run.

Debt Consolidation

If you have multiple high-interest debts, such as credit card balances or personal loans, mortgage refinance options in Singapore could be the best way to consolidate them. By rolling your debts into a single loan with a lower interest rate secured against your home, you can simplify your finances and potentially reduce your overall debt servicing costs.

When Is A Good Time To Refinance My Home Mortgage in Singapore?

There's no single "best" time to refinance, but certain situations make it particularly advantageous, such as:

End of Lock-in Period

Most home loans in Singapore come with a lock-in period, typically 2-3 years. Refinancing during this period usually incurs penalties. When your lock-in period ends, you gain the freedom to switch to a new loan without extra costs. This is an ideal time to explore the best refinancing home loan options, and potentially secure a lower interest rate.

There's Great Fluctuations in Market Interest Rate

Keep an eye on the market! When interest rates drop significantly, it offers a good opportunity to refinance your home loan. By securing a new loan at a lower rate, you can reduce your monthly repayments and save on total interest paid. However, remember that interest rates can fluctuate, so it's crucial to compare the home loan refinance rates in Singapore, and choose a loan that aligns with your long-term financial goals.

When There's New Regulatory Changes

Occasionally, regulatory changes can impact mortgage refinance in Singapore. These changes might affect loan-to-value (LTV) limits, Total Debt Servicing Ratio (TDSR) requirements or other factors that determine your eligibility for refinancing. Stay informed about any new regulations and assess whether refinancing could be beneficial in light of these changes.

When There's Big Changes In Your Life

Life throws curveballs! Significant life events can create a need for refinancing. This could include:

Needing Cash Flow: If you require a cash injection to address a financial challenge or pursue a new opportunity, a cash-out refinance can help.
Improved Financial Situation: If your financial situation has improved, you might want to shorten your loan tenure and pay off your mortgage faster. Refinancing can help you achieve this, especially if your current loan doesn't offer the flexibility to adjust your repayment schedule.

The Differences Between Refinance vs Reprice

It's easy to get confused between refinancing and repricing. Both involve changing your home loan terms, and in fact, mortgage brokers don't earn a commission from repricing. Let's break down the key differences below:

Feature	Refinancing	Repricing
Meaning	Switching your mortgage loan to a different lender	Switching to a different loan package with your current lender
Total Timeline Involved	Approximately 13 weeks	Approximately 5 weeks
Maximum Interest Saving	Potentially higher, due to wider range of loan options	Potentially lower, limited to your current lender's offerings
Special Mortgage Features	More options and flexibility to customise your loan	Limited to your current lender's available features
Cost Involved	Higher, including legal and valuation fees (however, most banks also offer subsidies for these as part of their promotions)	Lower, typically only administrative fees

By refinancing, you gain access to a wider range of loan options. This could potentially lead to maximum interest savings, and a mortgage package best tailored to your specific needs — especially beneficial if you’re paying more than you should on your existing home loan.

While repricing is quicker and less expensive, it limits your choices and potential savings. However, should repricing prove to be more beneficial in your situation, we'll be upfront and suggest it accordingly. Our aim is always to provide you with the best financial advice, and that includes helping you secure a loan that perfectly suits your needs.

The Refinancing Process In Singapore

Refinancing your home loan might seem complicated, but it's a straightforward process when broken down into steps. Here's a guide to best help you navigate the mortgage refinance journey:

Evaluation of Your Financial Goal and Existing Home Loan

Before you dive into refinancing, take some time to assess your financial goals and your current home loan situation. What are you hoping to achieve by refinancing? Are you looking for a lower interest rate, better cash flow or a shorter loan tenure? Using a housing loan calculator may help too. Understanding your objectives will help you choose the best refinancing home loan option for your needs.

Compare Refinancing Options

Once you know your goals, it's time to compare refinancing options. Explore different lenders and loan packages to find the one that best suits your needs and financial situation. This can be a time-consuming process, but a mortgage broker in Singapore can help. They can provide expert advice on how to refinance your home loan, and help you access a wide range of lenders and guide you towards the options in Singapore.

Documents Preparation

To apply for refinancing in Singapore, you'll need to gather several documents. Here's a checklist to help you prepare:

Essential Documents:

Proof of Identity: NRIC (for Singaporeans and PRs) or Passport

Income Documents:

Latest 12 months' CPF contribution history
Latest Income Tax Notice of Assessment (NOA) from IRAS
Recent payslips (usually the last 3 months)

Property Documents:

HDB flat details (if applicable) from My HDBPage
Title deed (for private properties)

Existing Loan Documents:

Loan account statements (past 6 months)
Original Letter of Offer for the existing loan

Credit Card Statements: Latest credit card statements (if applicable)

Other Financial Documents: Any other relevant financial documents, such as outstanding loan statements or investment portfolio summaries, may be requested by the lender.

Additional Documents for Owner-Occupied Properties:

IRAS My Property Tax page to demonstrate owner-occupation and potentially qualify for TDSR exemptions.

Having these documents ready will streamline the application process and help you secure the best refinancing home loan in Singapore.

Lawyer Engagement

Refinancing involves legal paperwork to transfer your mortgage from your current lender to a new one. You'll need to engage a lawyer to handle the conveyancing process. They will prepare the necessary documents and ensure a smooth transfer of your property title.

Application of Refinance and Waiting for Approval

Once you've chosen a lender and prepared your documents, you can submit your refinancing application. The lender will assess your application and may request additional information. The approval process can take some time, so be patient and stay in communication with your lender or mortgage broker.

Best Home Loan Refinance Rates In Singapore

Loan Amount

$ 1,200,000

Loan Tenor

30 years

Available Home Loan Packages as of December 2024

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What Are The Other Fees Involved In Home Loan Refinancing?

While securing the best refinancing home loan often means focusing on interest rates, it's equally important to understand the associated fees. Here's a breakdown of the costs you might encounter when refinancing:

Legal Fees: These cover the legal work involved in transferring your mortgage to a new lender. For private properties, legal fees typically range from $1,800 to $2,000, while for HDB flats, they are usually around $1,500-$1,600.
Valuation Fees: Lenders may require a valuation report to assess your property's current market value. This fee can range from $150 to $700 for private properties and $150 to $200 for HDB flats.

Why Choose Mortgage Master for Your Bridging Loan

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With over 6,500 happy clients and S$800 million in loans managed, Mortgage Master is your trusted partner for refinancing. We prioritise your best interests, providing personalised advice and access to the most competitive home loan refinance rates in Singapore.