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With 2020 being a year of extremely low interest rates and banks and other financial institutions in Singapore competing to offer the best home loan packages to customers, there's no better time to consider refinancing your home loan. However, if you don't know what it means to refinance, or how to refinance your mortgage, then it'll be good to take a few minutes to read on.

What exactly does refinancing mean?

Refinancing in Singapore refers to getting a new home loan from another financial institution to pay off your current home loan. Refinancing will often get you a lower interest rate, thus saving you money in the long run. With such a competitive mortgage industry in Singapore, refinancing should be done as often as possible, to ensure that you always enjoy the best and lowest interest rates on the market.

Why should you refinance?

If you took your loan before 2018, you should be paying around 2.40% or more on your home loan. That’s really high by today’s standards, where even fixed rate home loans are as low as 1.50%! Refinancing now will save you a significant sum of money.

For example, assume there’s still $500,000 outstanding on your loan, with 20 years left. You’re currently paying 2.40%, so your monthly instalment is about $2,625, or $31,500 a year.

By refinancing to a 1.50% home loan package, you will only pay $2,412 a month! That's $213 less you have to pay each month, or $2,556 less a year!

Read the rest of the article at the Mortgage Master Blog


Mortgage Master is a one-stop mortgage platform based in Singapore. 

We partner with major banks and financial institutions to provide the lowest, unpublished housing loan rates to our clients. 

At Mortgage Master, we never tire of doing what is right. Our mortgage consultants have decades of combined experience in the banking industry and have assisted over 6,500 satisfied clients to lighten their loan, referring almost SGD800 million in home loans. 

Through our free service, our clients receive personalised home loan advice based on their financial status and risk appetite. They testify to our willingness to go above and beyond to help them with all their mortgage needs.

Visit us at | Mortgage Master