Bank's refinance rate for private property

When considering refinancing a private property loan in Singapore, here are some key points and current rates to keep in mind:

Interest Rates

• Many banks offer competitive rates tied to the 3-Month Singapore Overnight Rate Average (3M SORA). As of November 2024, the 3M SORA is around 3.4932%.
• For example, some banks offer rates such as 3M SORA + 1.00%, resulting in an effective rate of around 4.4932% after the initial fixed or promotional period.
• Fixed rate packages are also available, such as a 2-year fixed rate of 2.50% to 2.80%, followed by a floating rate thereafter.

Promotions and Incentives

• Banks often provide various incentives to attract refinancing customers, including cash rebates, legal subsidies, and valuation subsidies. For instance, some banks offer cash rebates ranging from $2,000 to $2,800, and legal subsidies up to $2,000.

Lock-in Periods and Flexibility

• Most home loan packages come with a 2-year lock-in period. After this period, homeowners can choose to reprice with the same bank or refinance with a different bank. Some packages offer free conversion after the lock-in period.

Loan Tenure and Repayment

• Refinancing allows flexibility in adjusting the loan tenure, which can either lower monthly repayments by extending the tenure or reduce the total interest paid by shortening the tenure.

Additional Costs

• It is important to consider additional costs such as legal fees, valuation costs, and any penalties associated with refinancing. Banks may offer subsidies to cover some of these costs.

To get the most up-to-date and detailed information on refinancing rates and promotions for private properties, you can visit the EdgeProp Singapore website and consult with mortgage specialists who can guide you through the process.