Singapore Mortgage Refinance Calculator - Home Loan Refinancing

Refinancing Basics:

• Rate Refinancing: Replacing current loan with lower interest rate
• Cash-out Refinancing: Borrowing more than owed for cash
• Term Refinancing: Changing loan duration (shorter or longer)
• Product Switch: Changing from floating to fixed rate or vice versa

Key Metrics:

• Monthly Savings: Difference in monthly payments
• Break-even Period: Time to recover refinancing costs
• Lifetime Savings: Total interest saved over loan term
• Net Present Value: Current value of future savings

Refinancing Costs:

• Legal Fees: Lawyer fees for loan documentation
• Valuation Fees: Property appraisal costs
• Processing Fees: Bank administrative charges
• Stamp Duty: Government tax on loan documents

Rate and Term Refinancing:

• Lower Interest Rate: Reduce monthly payments and total interest
• Shorter Term: Pay off loan faster with higher monthly payments
• Longer Term: Reduce monthly payments but increase total interest
• Rate Type Change: Switch between fixed and floating rates

Cash-out Refinancing:

• Home Improvements: Renovations and upgrades
• Investment Purposes: Property or business investments
• Debt Consolidation: Pay off high-interest debts
• Education Expenses: Children's education funding

Product Switching:

• Within Same Bank: Change loan package without full refinancing
• Minimal Costs: Lower fees compared to full refinancing
• Rate Adjustments: Access to current promotional rates
• Feature Changes: Modify loan features and benefits

Major Local Banks:

• DBS Bank: Competitive rates and comprehensive packages
• OCBC Bank: Flexible terms and promotional offers
• UOB Bank: Attractive rates for existing customers
• Maybank: Competitive foreign bank rates

Rate Types Available:

• Fixed Rate: 2-5 year fixed periods, then floating
• SORA-based: Singapore Overnight Rate Average pegged
• Board Rate: Bank's internal benchmark rate
• Hybrid Packages: Combination of fixed and floating periods

Current Rate Ranges:

• Fixed Rates: 3.5% - 4.5% (2-3 year fixed)
• SORA + Spread: SORA + 0.8% - 1.5%
• Board Rates: 4.0% - 5.0% (varies by bank)
• Promotional Rates: Lower rates for first 1-2 years

Legal and Professional Fees:

• Legal Fees: $2,500 - $5,000 (lawyer's professional fees)
• Disbursement Costs: $300 - $800 (searches, registrations)
• Valuation Fees: $300 - $800 (property appraisal)
• Survey Fees: $200 - $500 (if required)

Government and Bank Fees:

• Stamp Duty: $200 - $500 (on mortgage documents)
• Processing Fees: $500 - $2,000 (bank administrative)
• Cancellation Fees: $0 - $1,000 (existing loan penalty)
• Fire Insurance: $100 - $300 (annual premium)

Optional Services:

• Mortgage Insurance: 0.5% - 1.0% of loan amount annually
• Legal Review: $500 - $1,500 (independent legal advice)
• Financial Advisory: $500 - $2,000 (professional consultation)
• Rate Lock: $200 - $500 (guarantee rate for period)

Rate Optimization:

• Rate Shopping: Compare multiple lenders simultaneously
• Timing Market: Refinance during low-rate periods
• Negotiation: Leverage competing offers for better terms
• Relationship Banking: Use existing bank relationships

Term Optimization:

• Shorter Terms: Reduce total interest with higher payments
• Longer Terms: Lower monthly payments for cash flow
• Hybrid Approach: Balance payment size and total cost
• Prepayment Strategy: Plan for early loan payoff

Cash Management:

• Cash-out Timing: Access equity when needed
• Investment Opportunities: Use cash for higher returns
• Debt Consolidation: Combine high-interest debts
• Emergency Fund: Maintain liquidity for unexpected needs

Interest Deductibility:

• Investment Properties: Mortgage interest generally deductible
• Owner-occupied: Interest not deductible for personal residence
• Mixed Use: Partial deductibility for home office
• Cash-out Proceeds: Use affects deductibility

Refinancing Costs:

• Legal Fees: Generally not deductible for personal residence
• Investment Property: Costs may be deductible
• Stamp Duty: Not deductible for personal use
• Professional Advice: Consult tax advisor for specific situations

When should I consider refinancing my mortgage?

Consider refinancing when interest rates drop significantly (0.5-1% or more), your credit score improves, property value increases, or you need cash for investments or debt consolidation.

How much does it cost to refinance a mortgage in Singapore?

Total refinancing costs typically range from $3,600 to $8,600, including legal fees ($2,500-$5,000), valuation fees ($300-$800), and processing fees ($500-$2,000).

What is the break-even period for refinancing?

The break-even period is when monthly savings equal total refinancing costs. Generally, if you plan to stay in the property longer than the break-even period, refinancing may be beneficial.

Can I refinance if I have an existing HDB loan?

Yes, you can refinance from HDB loan to bank loan, but you cannot refinance back to HDB loan. Consider the interest rate difference and eligibility requirements.

What documents do I need for mortgage refinancing?

Required documents include income statements, CPF statements, property documents, existing loan statements, and identification documents. Self-employed individuals need additional business documents.