🏦💰 Your home loan lock-in is ending. Could refinancing really save you $890 a month?
With Singapore mortgage rates much lower in 2026, homeowners who locked in at 3% or more in previous years may want to take another look at their existing package.
As of August 2026, some bank packages are around 1.3% to 1.4%, although the actual rate depends on the bank, loan size and borrower profile.
For example, on an $800K outstanding loan, moving from 3.50% to around 1.32% could save roughly $870 a month, based on a 25-year remaining tenure.
But before refinancing, don't just look at the headline rate.
Check:
🔒 Lock-in expiry
Most packages have a lock-in period, commonly around 2 years, with an early redemption penalty that can be around 1.5% of the outstanding loan.
⚖️ Legal & valuation costs
These can reduce your actual savings, especially if your outstanding loan is smaller.
📅 Timing
If your lock-in expires within the next 3 to 6 months, it's worth starting the review early because the refinancing process can take several weeks.
🏦 Repricing vs refinancing
You don't necessarily have to move banks. Sometimes your existing bank may offer a competitive repricing package, so compare both options.
📊 Break-even period
A lower monthly instalment doesn't automatically mean refinancing is worthwhile. Work out how many months it takes for your interest savings to recover the refinancing costs.
And one more thing:
Don't refinance simply because the rate is lower.
Look at your remaining loan tenure, outstanding balance, lock-in period and how long you intend to keep the property.
🔗 https://propertynet.sg/first-refinancing-lock-in-expiry-2026-cut-monthly-mortgage-890/
📌 Your mortgage rate is one of the easiest property costs to overlook because the payment happens automatically every month.
But a rate difference of 1% or 2% on a large outstanding loan can add up to thousands of dollars a year.
Sometimes, the best property saving isn't selling or buying.
It's simply reviewing the loan you already have.
PropertyNet.SG
First Refinancing at Lock-In Expiry Singapore: How One Couple Cut Their Mortgage by $890 a Month | PropertyNet.SG
A couple's first condo refinancing at lock-in expiry in 2026 cut their monthly instalment by $890. The numbers, the mistakes, and the framework.
September 7, 2026 41
