Looking to upgrade your HDB loan to a bank loan and save on interest? You’re in the right place! With interest rates evolving and banks like DBS, OCBC, and UOB offering competitive packages, more homeowners are making the switch. Refinancing from your HDB Concessionary Loan to a bank loan can open doors to lower rates, flexible repayment plans, and even cash-out opportunities.
At Ace Mortgage, we simplify the entire process for you. From comparing rates to understanding the fine print, we’re here to help you make the smartest choice for your financial future.
This guide breaks down everything you need to know about refinancing your HDB loan to a bank loan in Singapore—so you can make an informed, confident decision in 2025.
Understanding Home Loan Refinancing
Refinancing your HDB loan to a bank loan in Singapore can unlock savings, flexibility, and more control over your finances. Let’s break down how it works and why it might be the right move for you in 2025.
What is Home Loan Refinancing?
Home loan refinancing—specifically refinancing your HDB loan to a bank loan—means switching your mortgage from the HDB’s Concessionary Loan (2.6%) to a bank loan with potentially lower interest rates. This is one of the most popular ways Singapore homeowners save on their monthly payments and tap into better loan packages.
- Why refinance? Lower rates and flexible terms.
- How? Compare offers from banks like DBS, OCBC, and UOB.
- What’s next? Use our mortgage calculator to estimate your savings before you commit.
Benefits of Refinancing Your Home Loan in Singapore
Refinancing your HDB loan to a bank loan comes with a ton of advantages that can help you reach your financial goals faster:
- Lower interest rates: Save on your monthly payments compared to the HDB’s 2.6% rate.
- Flexible packages: Choose between fixed or floating rates to match your needs.
- Cash-out refinancing: Tap into your home’s equity for renovations, investments, or big purchases.
- Better financial planning: Align your loan with your long-term goals.
At Ace Mortgage, we make it easy to compare the best packages and find the right fit for your lifestyle.
Refinancing vs. Repricing: Key Differences
Before switching from your HDB loan to a bank loan, it’s good to know the difference between refinancing and repricing.
Comparing Refinancing Your HDB Loan vs. Repricing with HDB
| Criteria | Refinancing Your HDB Loan to a Bank Loan | Repricing with HDB |
|---|---|---|
| Definition | Moving your loan from HDB to a bank for better rates. | Adjusting your loan terms with HDB (less common). |
| Options | Access to competitive rates from banks like DBS, OCBC, and UOB. | Limited to HDB’s standard rates and policies. |
| Costs | Legal fees, valuation fees, and potential subsidies. | Usually no repricing option directly with HDB. |
Pro Tip: Always check your lock-in period and any subsidy clawbacks before refinancing. For detailed steps, see our HDB loan refinancing guide.
When Should You Consider Refinancing?
Timing is everything when it comes to refinancing your HDB loan to a bank loan in Singapore. Locking in a better rate at the right moment can mean big savings. Here’s what to watch for before you make your move.
Optimal Timing: Evaluating Your Current Loan Terms and Market Rates
Before diving into refinancing your HDB loan to a bank loan, take a moment to review your current loan terms and compare them with what’s available on the market.
- HDB loan rate: Stuck at 2.6%? Many bank loan packages now offer lower rates that could cut your monthly payments.
- Market rates: Keep an eye on offerings from banks like DBS, OCBC, and UOB.
- Loan tenure: The longer your tenure, the more you stand to save by switching.
Tip: Use a mortgage calculator to see how much you can save with HDB loan refinancing to a bank loan.
Signs It’s Time to Refinance: Interest Rate Hikes and Lock-In Periods Ending
Not sure when to switch? Here are a few signs it might be time to consider refinancing your HDB loan to a bank loan in Singapore:
- Interest rate movements: If market rates are lower than your current 2.6%, refinancing could be a smart move.
- End of lock-in period: No more penalties means you’re free to switch.
- Life changes: New financial goals, bigger family, or upcoming home renovations are perfect times to explore your options.
Planning Ahead: Initiating Refinancing 3-6 Months Before Lock-In Expiry
Don’t wait until your lock-in period ends—start planning to refinance your HDB loan to a bank loan 3-6 months in advance.
- Why so early? This gives you time to compare rates, get valuations done, and finalize paperwork without stress.
- How to start? Reach out to banks like DBS, OCBC, and UOB to compare packages—or get advice from a trusted mortgage advisor.
- Expert tip: Working with a mortgage broker like Ace Mortgage can help you find the best deals and avoid hidden fees.
Step-by-Step Guide to Refinancing Your Home Loan
Refinancing your HDB loan to a bank loan in Singapore might sound complicated, but it’s actually pretty straightforward when you know what steps to take. Here’s how to make the switch smoothly and get the best deal.
Assessing Your Current Loan and Financial Situation
Start by taking a close look at your current HDB loan terms.
- Interest rate: HDB’s Concessionary Loan is currently at 2.6%, but banks often offer lower rates.
- Outstanding loan balance: Knowing how much you owe helps you estimate your refinancing savings.
- Remaining tenure: Longer tenures might yield bigger savings from switching.
- Financial health: Make sure your total debt servicing ratio (TDSR) stays below 55% to qualify for refinancing.
Pro Tip: Use our mortgage loan repayment calculator to estimate your potential savings before making the switch.
Comparing Refinancing Packages from Various Banks
Don’t jump at the first offer you see — comparing refinancing packages from different banks can help you save thousands.
Comparison of Bank Refinancing Packages in Singapore - 2025
| Bank | Typical Rates (2025) | Key Features |
|---|---|---|
| DBS | Competitive SORA-based rates; flexible lock-in periods. | DBS Home Loan |
| OCBC | Strong packages for both HDB and private properties; generous subsidies. | Limited to HDB’s standard rates and policies. |
| UOB | Flexible fixed and floating options; cash rebates available. | Usually no repricing option directly with HDB. |
Ask about:
- Legal subsidies
- Valuation fees
- Cash rebates or promotions
At Ace Mortgage, we help you compare these packages and find the best match for your needs.
Navigating the Application Process with Your Chosen Lender
Once you’ve picked the best bank package, it’s time to get the paperwork rolling.
- Submit your application: Provide income documents, CPF statements, and property details.
- Valuation and legal checks: Your bank will arrange for property valuation and legal paperwork.
- Approval and acceptance: Review the offer letter carefully and sign it only when you’re confident.
Expert Tip: A mortgage advisor from Ace Mortgage can help you navigate the process, ensuring you understand all the fine print and potential costs.
Costs Involved in Refinancing and How to Minimize Them
Refinancing your HDB loan to a bank loan in Singapore can save you money in the long run, but don’t forget about the upfront costs. Here’s what to expect—and how to keep those expenses as low as possible.
Typical Refinancing Costs in Singapore - 2025
| Fee Type | Typical Cost (SGD) | Details |
|---|---|---|
| Legal Fees | $2,000 – $3,000 | Covers paperwork and mortgage registration. |
| Valuation Fees | $300 – $500 | Needed to revalue your property for the bank. |
| Fire Insurance | Varies | Often included in bank packages. Check with your lender. |
Tip: Always ask your bank for a full breakdown of costs—and don’t forget to ask about subsidies!
Understanding Subsidy Clawbacks and How to Avoid Them
Many banks offer subsidies to offset your refinancing costs—like covering legal or valuation fees—but there’s a catch. If you refinance your HDB loan to a bank loan before the lock-in period ends, your bank might reclaim (or “claw back”) those subsidies.
- Typical clawback period: 3 years.
- How much? Usually the full subsidy amount.
- How to avoid it? Plan your refinancing after the lock-in ends to dodge the clawback.
Pro Tip: Ask your bank or a mortgage advisor about any clawback clauses before you commit. Learn more in our HDB loan refinancing guide.
Leveraging Bank Promotions to Offset Refinancing Costs
Don’t let fees hold you back—many banks offer promotions to help offset these costs.
- Legal subsidies: Some banks cover part or all of your legal fees.
- Valuation subsidies: Rebates that can help with the valuation cost.
- Cash rebates: Direct cash incentives that you can use toward fees or even extra payments.
At Ace Mortgage, we help you compare promotions from banks like DBS, OCBC, and UOB so you get the best deal possible.
Exploring Different Refinancing Options
When you refinance your HDB loan to a bank loan in Singapore, you’ll find plenty of choices. From fixed rates to floating rates, and even cash-out refinancing, there’s an option to match every financial goal. Let’s break down the most popular ones.
Fixed-Rate vs. Floating-Rate Packages: Pros and Cons
Choosing between a fixed-rate or floating-rate package can impact your savings when refinancing your HDB loan to a bank loan.
Comparison of Fixed-Rate vs. Floating-Rate Packages
| Package Type | Pros | Cons |
|---|---|---|
| Fixed Rate | Predictable monthly payments; protects against rising rates. | Often starts higher than floating rates; less flexibility if rates drop. |
| Floating Rate (e.g. SORA) | Usually lower rates initially; potential savings in a stable or falling rate environment. | Payments can increase if rates rise; less predictability. |
Tip: With SORA-based packages becoming more common in 2025, compare offers from banks like DBS, OCBC, and UOB to find the best fit.
Cash-Out Refinancing: Accessing Your Home’s Equity
Need extra funds for renovations, investments, or other big expenses? Cash-out refinancing might be your answer.
- How it works: You increase your loan amount based on your home’s current value, freeing up cash tied up in your property.
- How much can you access? Typically up to 75% of your home’s market value, minus any outstanding loans.
- Important note: Your monthly payments may go up, so budget wisely.
At Ace Mortgage, we’ll help you figure out if cash-out refinancing is right for you.
Interest Offset Accounts and Their Benefits
Some banks offer interest offset accounts when you refinance your HDB loan to a bank loan. This feature lets you link a savings account to your mortgage so the balance helps reduce your interest payments.
- Benefits: Lower interest costs over time, with flexibility to withdraw your savings when you need it.
- Best for: Homeowners with steady savings who want to maximize interest savings.
Check with banks like DBS, OCBC, and UOB to see if they offer interest offset accounts—or get help from Ace Mortgage to find the right package.
Comparing the Best Refinancing Packages in Singapore
When refinancing your HDB loan to a bank loan, it pays to compare all the options. Different banks offer different rates, lock-in periods, and perks, and even mortgage brokers can help you find the best deal. Let’s break it down.
DBS Home Loan Rates vs. OCBC vs. UOB: A Detailed Comparison
Choosing the right bank package can make a huge difference in your savings. Here’s a quick comparison of the top players in Singapore for refinancing your HDB loan to a bank loan.
Comparing HDB Loan Refinancing Packages from DBS, OCBC, and UOB (2025)
| Bank | Typical Rates (2025) | Key Features |
|---|---|---|
| DBS | Competitive SORA-based rates; flexible lock-in periods. | DBS Home Loan |
| OCBC | Attractive packages for HDB and private properties; generous subsidies. | OCBC Home Loan |
| UOB | Flexible fixed and floating options; cash rebates. | UOB Home Loan |
Pro Tip: Always ask about legal subsidies, valuation fees, and cash rebates—these can significantly lower your refinancing costs.
Comparing Mortgage Brokers and Direct Bank Packages
Should you go straight to a bank or work with a mortgage broker? Here’s what to consider:
- Mortgage brokers:
- Compare multiple banks at once.
- Offer unbiased advice tailored to your needs.
- Handle paperwork and approvals, making the process smoother.
- Example: Ace Mortgage helps you find the best refinancing package for your HDB loan.
- Compare multiple banks at once.
- Direct bank packages:
- May offer exclusive rates to existing customers.
- Good if you already have a strong relationship with your bank.
- Limited to the bank’s own offerings—so you might miss out on better deals elsewhere.
- May offer exclusive rates to existing customers.
Tip: Even if you prefer dealing directly with a bank, consult a mortgage broker to compare all your options before committing.
Using a Mortgage Calculator to Find the Best Deal
Before you sign on the dotted line, it’s crucial to understand what you’re getting into. A mortgage calculator helps you estimate your monthly payments, total interest costs, and potential savings when refinancing your HDB loan to a bank loan.
- Input your current loan balance, tenure, and interest rate.
- Compare different packages from DBS, OCBC, and UOB.
- Factor in additional fees like legal and valuation costs.
Use our mortgage loan repayment calculator to see how much you could save—and make sure you’re making a financially sound decision.
Refinancing for Different Property Types
Refinancing isn’t a one-size-fits-all move. Whether you’re living in an HDB flat, a private condo, or an Executive Condominium (EC), the process and perks of refinancing your HDB loan to a bank loan (or bank-to-bank) can vary. Let’s dive into what you need to know for each property type.
HDB Refinancing: What You Need to Know
Refinancing your HDB loan to a bank loan is a popular choice for homeowners looking to save on interest and gain flexibility.
- Interest rates: Bank loans often offer lower rates than HDB’s 2.6% Concessionary Loan.
- Eligibility: You’ll need to meet the bank’s credit assessment and pass the TDSR (Total Debt Servicing Ratio) check.
- Lock-in periods: Most bank packages come with a lock-in period (usually 2-3 years), so plan your refinancing timing carefully.
Pro Tip: Check out our HDB loan refinancing guide for detailed steps and expert tips on making the switch smoothly.
Refinancing for Private Property Owners
If you own a private condo or landed property, refinancing your home loan is often more straightforward—but still worth comparing.
- SORA-based rates: Popular in 2025, these floating rates can offer savings if market rates remain stable.
- Fixed-rate packages: Ideal for homeowners who prefer predictability and protection against rate hikes.
- Cash-out refinancing: A great way to unlock your property’s equity for renovations, investments, or other big-ticket plans.
Tip: At Ace Mortgage, we help private property owners find the best refinancing packages that align with their financial goals.
Special Considerations for Executive Condominiums (ECs)
Refinancing your EC home loan is similar to refinancing an HDB loan—but with a few extra things to consider:
- Minimum Occupation Period (MOP): You must complete the 5-year MOP before you can refinance to a bank loan.
- Bank packages: ECs generally qualify for the same bank refinancing packages as private condos.
- Valuation: Banks might assess your EC differently than HDB’s valuation, so your maximum loan amount could change.
Pro Tip: Work with a mortgage advisor (like Ace Mortgage) to compare EC refinancing options and avoid surprises during the application process.
Common Mistakes to Avoid When Refinancing
Refinancing your HDB loan to a bank loan in Singapore can be a game-changer for your finances—but only if you do it right. Here are some common mistakes homeowners make and how you can steer clear of them.
Overlooking Lock-In Periods and Associated Penalties
One of the biggest mistakes homeowners make is refinancing during their lock-in period. Banks often charge early repayment penalties (usually 1–2% of the outstanding loan amount) and claw back any subsidies they offered you at the start of your loan.
- Lock-in period: Usually 2–3 years for most bank loans.
- Penalty costs: Can easily outweigh any savings from a lower interest rate.
Tip: Always check your current lock-in period before refinancing your HDB loan to a bank loan. If in doubt, talk to an expert at Ace Mortgage to understand the best timing for your switch.
Neglecting to Account for Total Interest Costs Over the Loan Term
Don’t just focus on the monthly repayment—think big picture. A lower monthly payment doesn’t always mean you’re saving in the long run, especially if you extend your loan tenure.
- Longer tenure: Lower monthly payments but higher total interest paid.
- Shorter tenure: Higher monthly payments but less interest over time.
Pro Tip: Use a mortgage loan repayment calculator to compare total interest costs before refinancing your HDB loan to a bank loan.
Failing to Compare All Available Refinancing Options Thoroughly
It’s tempting to stick with your current bank or the first offer you get, but that could mean leaving money on the table. Comparing packages from different banks can reveal lower rates, better subsidies, and more flexible options.
- DBS, OCBC, and UOB: All offer competitive rates for refinancing HDB loans to bank loans.
- Mortgage brokers: Can simplify comparisons and highlight hidden costs or benefits.
Tip: At Ace Mortgage, we help you compare all available refinancing options so you can make the most informed choice.
Advanced Tips for Getting the Best Deal
You’ve covered the basics of refinancing your HDB loan to a bank loan—now let’s go further. Here are some advanced strategies to help you lock in the best rates and save big in 2025.
Aligning Refinancing Decisions with Interest Rate Cycles
Interest rates in Singapore are influenced by factors like SORA, inflation, and global economic trends. Timing your refinancing decision can make a huge difference in how much you save.
- Rates are low: Lock in a fixed rate to protect against future hikes.
- Rates are rising: Act quickly to secure the best current offers.
- Stable periods: Weigh the pros and cons of fixed vs. floating rates.
Pro Tip: Monitor SORA trends with help from a mortgage advisor at Ace Mortgage to decide when to refinance your HDB loan to a bank loan.
Utilizing Mortgage Brokers for Expert Advice and Better Deals
Mortgage brokers are like your personal shopper for the best refinancing deals in Singapore.
- Why use a broker?
- Access to multiple bank packages (DBS, OCBC, UOB, and more).
- Expert advice on hidden costs and subsidy clawbacks.
- Faster application process with fewer headaches.
- Access to multiple bank packages (DBS, OCBC, UOB, and more).
At Ace Mortgage, we help you navigate the refinancing maze and find the package that saves you the most.
Regularly Reviewing Your Mortgage to Capitalize on Market Changes
Even after refinancing your HDB loan to a bank loan, it pays to stay vigilant.
- Interest rate drops: Consider refinancing again to lock in lower payments.
- New bank promotions: Cash rebates or legal subsidies can sweeten the deal.
- Life changes: A new job or expanding family might mean a different loan fits better.
Pro Tip: Check in with your mortgage advisor every 2–3 years to make sure you’re still getting the best rate possible.
Frequently Asked Questions About Home Loan Refinancing
Got questions about refinancing your HDB loan to a bank loan in Singapore? You’re not alone! Here are some of the most common questions we get—and the answers that can help you make the right choice.
Can I Refinance My HDB Loan to a Bank Loan?
Yes! Refinancing your HDB loan to a bank loan is a popular move among homeowners in Singapore who want to enjoy lower interest rates and more flexible repayment terms.
- Benefits: Potentially lower rates than the HDB’s 2.6% Concessionary Loan.
- Requirements: You’ll need to meet the bank’s credit assessment and TDSR requirements.
- Process: Compare packages from banks like DBS, OCBC, and UOB to find the best fit.
Tip: Check out our HDB loan refinancing guide for step-by-step instructions.
Is It Possible to Refinance During the Lock-In Period?
Technically, yes—but watch out for penalties.
- Early repayment penalties: Usually 1–2% of your outstanding loan amount.
- Subsidy clawbacks: If you received subsidies (legal, valuation) when you first took the loan, banks might reclaim those if you refinance early.
- Is it worth it? Calculate whether the savings from refinancing outweigh the penalties.
Pro Tip: At Ace Mortgage, we can help you crunch the numbers and decide the best time to refinance your HDB loan to a bank loan.
How Does Refinancing Affect My Total Debt Servicing Ratio (TDSR)?
When you refinance your HDB loan to a bank loan, the bank will reassess your TDSR to ensure it’s below the 55% cap set by MAS.
- What’s included? Your monthly home loan payment, plus other debts like car loans, personal loans, and credit cards.
- Impact: If your TDSR is too high, you might need to adjust your loan amount or pay down other debts before refinancing.
- How to prepare: Use a mortgage loan repayment calculator to estimate your TDSR impact.
Conclusion: Make Refinancing Work for You in Singapore (2025)
Refinancing your HDB loan to a bank loan in Singapore isn’t just about chasing a lower rate—it’s about building a smarter, more flexible financial future. By comparing packages from top banks like DBS, OCBC, and UOB, and working with trusted advisors like Ace Mortgage, you can unlock savings, gain flexibility, and even access cash-out refinancing when you need it.
Take the time to review your current loan, understand your refinancing options, and align your decisions with your financial goals. With the right strategy—and the right support—you’ll make refinancing work for you in 2025 and beyond.
