Refinance your Singapore investment property when (1) your current rate exceeds the market by 75+ basis points, (2) lock-in period expires (typically year 2 of original loan), or (3) you want to switch from fixed to floating (or vice versa) based on rate outlook. 2026's multi-year-low rates make this an excellent refinance window for any borrower above 2.5%.
When refinancing makes sense
| Trigger | Action |
|---|---|
| Current rate above market by 75+ bps | Refinance immediately if lock-in is over |
| Lock-in expires within 6 months | Start comparing rates now |
| Rate fixed locking expires soon | Refinance to lower fixed or floating |
| Want to switch fixed ↔ floating | Strategic re-positioning |
| Cash-out for new purchase | Refinance with higher loan amount (subject to LTV/TDSR) |
Refinance cost-benefit math
| Item | Amount |
|---|---|
| Outstanding loan | S$800,000 |
| Current rate | 2.8% |
| New rate | 1.3% (fixed 2-yr) |
| Annual interest saved | S$12,000 |
| Refinance legal + valuation fees | S$3,000 |
| Net 1-year benefit | +S$9,000 |
| Net 5-year benefit | +S$57,000 |
The refinance pays back in approximately 3 months on this scenario — clearly worth it.
TDSR exemption for refinancing
Owner-occupied refinancing without an increase in loan amount is generally exempt from TDSR — even if your current income has reduced since the original loan. This is a key benefit for older borrowers refinancing existing loans. Source: MAS.
Investment property refinancing typically requires fresh TDSR assessment unless owner-occupied criteria are met.
FAQ
Can I refinance during lock-in period?
Yes, but you'll pay the prepayment penalty (typically 1.5% of outstanding loan). The benefit must exceed the penalty.
How long does refinancing take?
4-6 weeks from application to disbursement. Plan ahead.
Do all banks offer refinance to investment property?
Most banks accept investment property refinance. Some charge a slight rate premium vs owner-occupier (e.g. 5-10 bps).