Home Loan Refinancing Calculator

Compares your current mortgage with a new rate to show the monthly saving and how long switching costs take to recover.

Result

Current instalment
S$3,356.97
New instalment
S$3,076.95
Monthly saving
S$280.02
Months to recover costs
10.71 months

How to use the home loan refinancing calculator

  1. Enter the outstanding loan (S$).
  2. Enter the current rate (%).
  3. Enter the new rate (%).
  4. Enter the remaining tenure (years).
  5. Enter the switching costs (S$).
  6. The results update as you type, or press Calculate.
  7. Read the current instalment first, then the supporting figures below it.

Formula

Saving = PMT(current rate) − PMT(new rate); breakeven = switching costs ÷ monthly saving.

Worked example

For example, with these inputs:

the calculator returns:

Background

Stamp duties are paid upfront. Buyer's Stamp Duty applies to every purchase at tiered rates up to 6%, while ABSD depends on the buyer's residency status and how many residential properties they already own. Sellers who dispose of a property within the holding period pay Seller's Stamp Duty.

The Total Debt Servicing Ratio limits monthly debt repayments to 55% of gross monthly income for any property loan, and the Mortgage Servicing Ratio limits the housing instalment to 30% of income for HDB flats and new executive condominiums. Banks apply a medium-term interest rate in these tests rather than the rate you will actually pay.

Frequently asked questions

How does the home loan refinancing calculator work?

It applies this formula: Saving = PMT(current rate) − PMT(new rate); breakeven = switching costs ÷ monthly saving.

Should I rely on this before signing?

Use it to plan, then confirm the figures with your banker, lawyer or the IRAS stamp duty calculator before you exercise an option to purchase.

Guides for this calculator

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