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Updated March 18, 2025
For many Singaporeans, an HDB flat is your most valuable asset and largest debt. With interest rates expected to rise in 2025, you may be considering refinancing your HDB loan to lower your monthly payments. However, refinancing an HDB loan is not as simple as refinancing a private property loan.
HDB loans have a lock-in period, usually 5 years from key collection or last refinancing. Within the lock-in period, you can only refinance with HDB using the HDB concessionary interest rate. If you refinance with a bank, you will not be able to refinance with HDB at the concessionary rate again.
If you refinance your HDB loan before the end of the lock-in period, you will incur early redemption fees based on a percentage of the loan amount. This can add tens of thousands to your refinancing costs.
| Bank | Scheme | Lock In Period | 1st Yr Interest | 2nd Yr Interest | 3rd Yr Interest | 4th Yr Interest | |
|---|---|---|---|---|---|---|---|
| Promotion | 2 Year Fixed Flexi (With 200K Deposit) | 2 years | 2.42% | 2.42% | 3.80% | 4.00% | |
| SBI | 2 Year Fixed | 2 years | 2.55% | 2.55% | 3.90% | 3.90% | |
| Hong Leong Finance | 2 Year Fixed | 2 years | 2.55% | 2.55% | 4.04% | 4.04% | |
| Maybank | 2 Year Fixed (With 30K Deposit) | 2 years | 2.55% | 2.55% | 4.00% | 4.00% | |
| Promotion | 2 Year Fixed | 2 years | 2.55% | 2.55% | 3.65% | 3.90% | |
| DBS | 2 Year Fixed | 2 years | 2.60% | 2.60% | 3.40% | 3.90% | |
| Promotion | 2 Year Fixed | 2 years | 2.60% | 2.60% | 4.00% | 4.00% | |
| Promotion | 2 Year Fixed Flexi | 2 years | 2.60% | 2.60% | 3.65% | 3.90% | |
| Hong Leong Finance | 3 Year Fixed | 3 years | 2.60% | 2.60% | 2.60% | 4.25% | |
| Promotion | 3 Year Fixed Flexi | 3 years | 2.60% | 2.60% | 2.60% | 3.90% |
| Bank | Scheme | Lock In Period | 1st Yr Interest | 2nd Yr Interest | 3rd Yr Interest | 4th Yr Interest | |
|---|---|---|---|---|---|---|---|
| Promotion | 1-Month SORA (With 200K Deposit) | 2 years | 3.00% | 3.05% | 3.00% | 3.00% | |
| OCBC | 3-Month SORA | 2 years | 3.40% | 3.40% | 3.65% | 3.90% | |
| SBI | 3-Month SORA | 2 years | 3.40% | 3.40% | 3.90% | 4.00% | |
| DBS | 3-Month SORA | 2 years | 3.45% | 3.00% | 3.00% | 3.00% | |
| Maybank | 3-Month SORA | 1 year | 3.45% | 3.45% | 3.45% | 3.90% | |
| Standard Chartered | 3-Month SORA (Priority Banking) | 2 years | 3.50% | 3.50% | 3.55% | 3.90% | |
| Promotion | 3-Month SORA | 2 years | 3.50% | 3.50% | 3.65% | 3.90% | |
| SBI | 3-Month SORA | 3 years | 3.65% | 3.65% | 3.65% | 4.00% | |
| SBI | 3-Month SORA | 0 year | 3.90% | 3.90% | 4.00% | 3.90% |
*Today's Mortgage Rates - 17 March 2025
While bank loans currently offer lower interest rates, keep the long 30-year HDB loan term in mind. HDB interest rates have historically trended lower than bank mortgage rates over the full lifespan of the loan. Run the numbers taking the long view - while refinancing may produce short-term savings, sticking with the HDB loan could mean more interest savings over decades.
Refinancing is a permanent decision, so ensure it makes financial sense for your long-term home ownership plans and not just temporary monthly repayment relief. The concessionary HDB interest rate is a valuable benefit for the long haul.
HDB loan interest rates fluctuate frequently, making it challenging to determine the best refinancing option. Even if you find a lower interest rate, it could increase after several months.
Additionally, applying necessitates providing 10-20 documents. Utilizing the ROSHI marketplace expedites this process, though unbiased comparision and loan expert advise.
For a $500,000 refinance loan, lowering the rate from 4% to 3.5% saves $2,500 annually. However, legal fees may equal $2,500, and valuation fees range from $500-1,000, potentially negating any interest rate savings.
Typical HDB Refinancing Fees:
Choosing between a fixed or floating rate depends on the current market condition. Only the lock-in period must be considered, after which refinancing is possible.
If the floating rate appears stable and lower than fixed rates for the next two years, it may be preferable. Otherwise, the fixed rate provides more certainty.
A steady or decreasing floating rate will likely remain below fixed rates, providing long-term savings. Market conditions generally indicate when rates will remain flat or decline over a 2-year timeframe.
For borrowers with a floating rate, increasing rates present substantial risk. Until the lock-in period is over, no action can be taken if rates spike.
The fixed rate offers more security that is advisable in these conditions.
Use ROSHI’s loan marketplace to easily compare availalbe rates across all major banks and to get expert advice from our loan managers.
If your HDB flat has a high COV, refinancing with another bank may be limited by LTV ratios. You might need to wait for COV to decrease first.
Banks limit the refinancing to outstanding loan amount. Pay down as much as possible first to maximize cash-out.
HDB only allows extending tenure by 5-year blocks at a time. Plan timing and budget accordingly.
Legal and valuation fees can be paid using CPF, preserving cash. Useful especially for cash-out refinancing.
Refinancing is recommended if your outstanding loan amount exceeds $250,000 and the new interest rate is at least 0.3% lower than your current rate. Meeting both criteria can lead to significant interest savings.
Banks offer attractive HDB refinancing packages almost every month. Applying via the ROSHI loan marketplace allows you to take advantage of the most competitive and current promotional rates.
Yes, you can opt to shorten your loan tenure to as little as 5 years when refinancing. This enables faster repayment and reduced interest costs, albeit with higher monthly instalments.
Yes, refinancing from an HDB loan to a bank loan is straightforward, with no upfront fees if your outstanding amount is above $250,000. Income documents and application forms need to be submitted.
No, cash-out refinancing is not permitted for HDB properties. Only private properties qualify after meeting the 5-year minimum occupation period.
There is no limit to how many times you can refinance an HDB loan. However, once switched to a bank loan, you cannot revert to an HDB loan.
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