Mortgage Refinancing Savings Calculator Singapore 2026
Compare Old vs New Loan Package — Monthly Saving, Break-Even & Net Benefit After Costs
Compare your current mortgage package against a new refinancing offer to see whether switching saves you money after all costs. Enter your outstanding balance, current rate, remaining tenure, and the new package rate. The calculator shows your monthly instalment saving, total interest saved over the remaining tenure, and critically — the net benefit after refinancing costs (legal fees, valuation, prepayment penalty) with the exact break-even period in months. Includes a rate-increase stress scenario to check whether the saving holds if SORA rises after refinancing.
Your current outstanding mortgage balance — check your latest bank statement or mortgage account. This is the principal that will be refinanced to the new package.
Your current effective interest rate and the number of years remaining on your existing mortgage. If your lock-in just ended and the rate stepped up to the “thereafter” rate (e.g., SORA + 1.0%), enter that stepped-up rate.
The interest rate offered by the new bank or the new package from your current bank. Keep the tenure the same as remaining for a like-for-like comparison, or adjust if you want to shorten/extend.
If you are still within the current loan’s lock-in period, the bank charges a prepayment penalty — typically 1.5% of the outstanding loan balance (e.g., S$7,500 on a S$500,000 loan). After lock-in, the penalty is usually zero. Some new banks subsidise the legal and valuation fees — adjust to zero if subsidised.
Enter your current mortgage details and the new offer to see the monthly saving, total interest saved, refinancing costs, break-even period, and whether switching is worth it after all costs.
Mortgage Refinancing Singapore 2026 — When to Switch, Break-Even Analysis & SORA Package Comparison
Mortgage refinancing — switching from your current home loan package to a new one (with the same or a different bank) — is the most common way Singapore homeowners reduce their monthly instalment and total interest cost. Most bank loan packages have a 2–3 year lock-in with an attractive initial rate, after which the rate steps up to a higher “thereafter” rate. At that point, refinancing to a new package with a fresh competitive rate can save significant money. The key question is not just “is the new rate lower?” but “after refinancing costs (legal fees, valuation, any prepayment penalty), is the net saving positive and the break-even period reasonable?”
Typical Refinancing Costs in Singapore 2026
| Cost Item | Typical Amount | Who Pays |
|---|---|---|
| Legal / conveyancing fees | S$2,000–S$3,500 | Borrower (some banks subsidise) |
| Valuation fee | S$300–S$500 | Borrower |
| Prepayment penalty (during lock-in) | ~1.5% of outstanding balance | Borrower (only if still in lock-in) |
| Mortgage stamp duty | S$500 (capped) | Borrower (often absorbed by new bank) |
| Fire insurance | S$100–S$300 | Borrower (annual) |
Many banks offer legal fee subsidies (S$2,000–S$3,000 cash rebate) or free valuation as refinancing incentives. Factor these into your net cost calculation. After lock-in, prepayment penalty is typically zero.
How This Refinancing Calculator Works — Savings, Costs & Break-Even
Step 1 — Enter Current and New Loan Details
Enter your outstanding balance, current rate and remaining tenure, and the new package’s rate and tenure. For a like-for-like comparison, keep the tenure the same. The calculator computes the monthly instalment under both packages and the difference (your monthly saving).
Step 2 — Add Refinancing Costs
Enter legal fees, valuation fee, and any prepayment penalty. The calculator deducts these from the gross interest saving to give the net benefit. If net benefit is positive, refinancing is worth it; if negative, the costs outweigh the saving.
Step 3 — Check Break-Even and Stress Scenario
The break-even period shows how many months of monthly savings it takes to recoup the refinancing costs. If the break-even is 8 months and your new lock-in is 2 years, you enjoy 16 months of pure savings after breaking even. The chart also shows a “+0.5% stress scenario” so you can see what happens if SORA rises after refinancing.
3 Real Singapore Refinancing Examples — Post-Lock-In Switch, During-Lock-In Penalty & Same-Bank Repricing
Post-Lock-In, 3.5% to 2.8%
During Lock-In, 4.0% to 2.5%
Same Bank Repricing, 3.2% to 2.9%
3 Expert Refinancing Tips — Timing, the Subsidy Trap & Repricing vs Refinancing
Set a Calendar Reminder 3 Months Before Lock-In Ends
The single most important refinancing strategy: set a reminder 3 months before your lock-in expires. Most lock-in periods are 2–3 years. When the lock-in ends, your rate typically steps up to a higher “thereafter” rate (e.g., from 2.5% to SORA + 1.0%, which could be 3.5%+). If you start shopping 3 months early, you have time to compare offers from 3–4 banks, negotiate, and complete the legal process before the higher rate kicks in. Many borrowers miss this window and end up paying the “thereafter” rate for months while scrambling to refinance — each month at the higher rate is money lost. The refinancing process takes 6–10 weeks from application to completion, so starting 3 months early is ideal.
Factor in the Full Package, Not Just the Rate
A lower headline rate does not always mean a better deal. Compare the total package: (1) the rate for the full lock-in period and the “thereafter” rate; (2) the lock-in duration (2yr vs 3yr); (3) clawback provisions (if you refinance within a certain period, you must return the legal subsidy); (4) cancellation fees; (5) whether the new bank subsidises legal fees and valuation. A package at 2.7% with 3-year lock-in, S$2,500 legal subsidy, and free valuation can be better than a 2.5% package with 2-year lock-in, no subsidies, and a clawback clause. This calculator lets you model both scenarios by adjusting the net refinancing costs.
Repricing (Same Bank) vs Refinancing (New Bank): Know the Difference
Repricing means switching to a different package at your current bank. It is faster (no legal process, no new bank valuation), cheaper (typically S$500–S$800 repricing fee only), and simpler. The trade-off: your current bank may not offer the most competitive rate. Refinancing means moving the loan to a different bank. It offers access to the best market rate but involves legal fees, valuation, and a longer process. Rule of thumb: if the rate difference is small (0.1%–0.2%), repricing with your current bank may be more cost-effective. If the difference is large (0.5%+), refinancing to a new bank is likely worthwhile. This calculator works for both — for repricing, set legal and valuation fees to zero and enter only the repricing fee under “penalty.”
