Home Loan Refinancing Costs Singapore: Fees and Real Savings
A refinance is worthwhile only if the useful savings justify its fees and restrictions. Itemise the costs, compare a repricing offer from your current bank, and use the period you expect to retain the new package.
Build the fee stack
| Cost | What to confirm |
|---|---|
| Legal and conveyancing | Scope, taxes and who bears the cost |
| Valuation and processing | Whether required and included in the offer |
| Mortgage stamp duty | Document type, duty and whether already included in the legal quote |
| Existing loan exit | Redemption penalty, notice shortfall and subsidy clawback |
| New incentives | Eligibility, payment timing and future clawback conditions |
For an ordinary mortgage instrument, IRAS lists 0.4% of the secured loan, capped at S$500. Other mortgage instruments can have different treatment. Have the conveyancer identify the applicable duty, and avoid counting it twice if already included in a quote. Changing lender alone is not a new property purchase subject to fresh BSD/ABSD; an ownership change is a different transaction. IRAS: stamp-duty rates, including SSD and mortgage duty.
A sample upfront budget
Illustrative charges: S$2,000 legal work + S$300 valuation + S$500 mortgage duty − S$1,000 confirmed subsidy = S$1,800 net upfront cost. If the existing bank also requires S$3,000 subsidy repayment, the total becomes S$4,800. These are invented figures, not standard market fees. Include tax where applicable and verify subsidy timing.
A worked refinance example
Assume S$700,000 outstanding, 25 years left, a current 3.5% rate and a new 2.9% rate. Both remain constant for a 36-month scenario. Payments fall from S$3,504.36 to S$3,283.19. With S$2,500 switching costs, interest savings of S$12,312.07 leave S$9,812.07 net economic savings.
Lower payments release S$7,962.46 over those 36 months. After fees, cash released is S$5,462.46; the new loan balance is also S$4,349.60 lower. Those two components reconcile to the same S$9,812.07 economic gain, subject to display rounding.
Cumulative interest savings recover the fee in month 8. Lower monthly payments replenish the initial fee cash in month 12. Neither measure discounts money over time or predicts future rates.
Cash recovery versus economic savings
Fees divided by lower monthly payments measures cash recovery. It does not capture principal being repaid faster under a lower rate. For actual cost comparison, compare interest paid plus fees at the same horizon, and also examine each remaining loan balance. The refinance calculator displays both views.
Before accepting a quote
Compare keeping the current package, repricing and switching bank. Check future lock-in dates against any expected sale, and include a second scenario with higher fees or a shorter hold. A subsidy may defer a cost until exit rather than eliminate it. MoneySense: home loans, repricing and refinancing.
FAQ
Is a subsidised refinance free?
Not necessarily. Subsidies can have eligibility conditions, payment timing and clawbacks; other fees may remain.
Should I add mortgage duty to the legal quote?
Only if it is applicable and not already included. Ask for an itemised quote to avoid double counting.
What is the right horizon?
Use the period you reasonably expect to keep the package, including known rate resets and sale plans.
Related guides and calculators
References
Sources checked 14 September 2026. Examples use stated assumptions and are not lender or CPF payout quotes.
Last updated: 14 Sep 2026 · Editorial Policy · Advertising Disclosure · Corrections