Refinancing means switching your existing home loan to a new loan package that offers more favorable terms or lower interest rates. For example, if you took an HDB loan at 2.6% and later found a bank loan at 2.0%, moving from your HDB loan to that bank loan could reduce monthly repayments. This helps free up cash for other expenses or investments. However, once you move from an HDB loan to a bank loan, you generally cannot switch back to an HDB loan. Many people in Singapore choose refinancing to enjoy lower interest rates and lower monthly mortgage costs over time.
