Home Loan Refinancing in Singapore – Your Loan, Your Way!
Compare refinancing packages to switch to smarter rates and flexible plans today!
Compare Refinancing Rates NowWant to keep more money in your pocket every month? It's easier than you think! If you own a home in Singapore, your home loan likely takes up a significant portion of your monthly budget. Moving house or downsizing isn't necessary when you can turn high interests into big savings with housing loan refinancing.
By switching your existing mortgage to a better deal, you can save money, enjoy flexible terms, and even unlock cash to achieve your other goals. We'll walk you through the basics on home loan refinancing in Singapore, when to consider it, and why you should partner up with heyphillip for your refinancing journey.
What is Home Loan Refinancing?
For those seeking better terms, housing loan refinancing means replacing your existing mortgage with a new term package— usually from a different bank or lender. There are several reasons to consider refinancing, such as:
Lower Interest Rates
To reduce monthly repayments and overall interest costs.
Better Terms
Chance to switch to a package that suits your financial goals (e.g., fixed vs floating rates).
Free Up Cash
Tap into your home equity to cover renovations, investments, or emergencies.
In short, refinancing is a way of optimising your loan to save money and improve flexibility.
If you want to refinance with confidence, save more by getting in touch with our expert consultants at callme@heyphillip.com for a free loan assessment!
Perks of Refinancing Your Home Loan in Singapore
Lower Monthly Payments
Secure a reduced interest rate and free up more income.
Save on Total Interest Costs
Cut thousands off your total loan repayment over time.
Flexibility in Loan Tenure
Shorten your loan term to become debt-free faster or extend it to reduce monthly commitments.
Switch Between Fixed and Floating Rates
Adapt your loan to current market trends.
Leverage Your Equity
Unlock funds for other expenses such as renovations, investments, or other big expenses.
Better Alignment with Financial Goals
Adjust your mortgage to match your current needs, from changes in your income to lifestyle.
When Should I Refinance My Home Loan?
If you are seeking to refinance your home loan in Singapore, the best time is typically when your lock-in period is ending, to avoid paying penalties or if market interest rates have dropped. The latter makes it possible to secure a cheaper package to help you ease the burden of your loan.
Besides these, refinancing can be considered if the financial situation changes, such as you wanting to shorten your loan tenure or need extra cash flow for new/sudden expenses. Regardless of your reasons, a good rule of thumb is to review your loan terms at least every 2 to 3 years to ensure you are not overpaying.
Loan Refinancing Process: How Does it Work?
Is refinancing a complex task? Not at all, it's a straightforward process. Let's break it down:
1. Review Current Loan Details
Check your existing interest rate, remaining loan tenure, and whether there are any early repayment penalties.
2. Compare New Packages
Look at offers from multiple banks and lenders to find the best deal for your needs.
3. Evaluate Costs vs Savings
Factor in legal fees, valuation costs, and processing charges to see if refinancing truly saves you money and aligns with your needs. In addition, find out the cash rebates and subsidies offered by banks to offset refinancing costs.
4. Apply for Refinancing
Submit necessary documents like income statements, CPF contribution history, and property details.
5. Approval & Switch
Once approved, your new lender will pay off your old loan, and you’ll start making repayments under your new terms.
Types of Refinancing Packages in Singapore
If you are considering housing loan refinancing in Singapore, these are the different package types you need to know:
Fixed-rate refinancing offers predictable repayments since your interest rate stays the same for a set period (e.g: 2 to 3 years).
Floating-rate refinancing is a bit more unpredictable as the rate changes according to market movements which allows you to save when rates drop but will need to make higher payments if they rise.
SORA-based packages are pegged to the Singapore Overnight Rate Average (SORA), which is considered to be more transparent and stable over time.
Fixed deposit-linked rates are tied to a bank’s fixed deposit rate, which may offer stability but can still fluctuate.
★ Important tip: Always compare the Effective Interest Rate (EIR) as it reflects the true cost of your loan, including fees.
Common Mistakes to Avoid When Refinancing
Although refinancing your home loan sounds like an enticing option, without proper planning it can be more costly than cost-saving. These are some common mistakes to avoid:
Refinancing too early can lead to paying high penalty fees.
Choosing the lowest interest rate without checking lock-in clauses or hidden costs.
Ignoring the EIR and focusing only on promotional rates.
Not considering how rate fluctuations could impact your long-term affordability.
Not taking administrative fees, legal charges, or valuation costs into consideration.
Why Choose heyphillip?
Are you on the hunt for mortgage experts to help you understand your home loan refinancing options? Look no further than heyphillip! We simplify the entire refinancing process so that Singaporean homeowners can make smart, informed decisions.
Our team compares rates across multiple banks, explains your options clearly, and ensures you secure a package that truly benefits you. Whether you want to cut costs or improve your loan terms, we’ll handle the details so you can focus on what matters most. Contact heyphillip at +65 8966 8118 or callme@heyphillip.com today to refinance with confidence!
FAQs
Don't let these fears stop you from refinancing your home loan in Singapore. Get in touch with mortgage experts at heyphillip to get started.